I am a real estate investor, part-time. I started in October of this year and currently own 6 residential properties, one of which is a triplex. I manage all of my properties by myself, but really the only property that needs managing is the triplex. The remaining 5 are single family homes that I am lease-purchasing to tenants. After a year of living in these homes, the tenants will either buy them or I will re-do the process all over again or get someone else to do the lease-purchase agreement with. Unfortuately, if the family does not buy the property, they lose the down-payment which can be anywhere between $2500.00 to $6000.00. Anyway, I would like to move to commercial properties and I am currently interested in apartment complexes. All of my previous properties, I purchased with 100% financing because I have excellent credit. Purchasing commercial properties do not work the same way. Does anybody have any suggestion as to how to purchase commercial property with little to no money down?

You could try prosper but I think they have a limit of $25,000 per loan and a 3 year loan period, but you might be able to finance most of your commercial property the conventional way, and then borrow the balance on prosper. You would have two payments per month, but as long as you are making enough per month to cover both you should be okay.

Technically apartments are considered residential, multifamily dwellings. I'm not sure whether or not it will be possible to finance 100% through a bank. If it is, it will all depend on your loan history more than your credit score. If you have a long history of consistently paying down your long-term debt on investment properties, banks might be willing to take a risk.

Personally, I think your best option would be to find private investors for the down payment. Be sure to organize as an LLC separate from your other ventures though.

You can qualify for up to 90% financing of a commercial property. You can apply for a personal or business unsecurred line(s) of credit to handle the down payment. We have all these products. Email mail or pm me for details.

Commercial Mortgage Solutions Inc
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MrCorgi@gmail.com

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I purchased a piece of commercial property in May of 2007. I purchased it with 100% owner financing because the previous owner was willing to carry the note. I also have excellent credit but trying to get financing through traditional methods all required at least 10% down, commercial property you are usually required to have 30% down.

One of the reasons the previous owners were willing to carry the note is because the asking price was over $500,000 and the amount of paperwork required for that amount of money would have slowed the closing process. The previous owners wanted a "quick" closing.

It is possible to get 100% owner financing, you just need to find the right property.

Owner financing is definitely the way to go.

And you don't necessarily need 100% owner financing. In some cases, you can get a commercial mortgage of 70% - 90% and get the owner to carry a note for the rest.

Cheers!

[quote name='investor2k6' date='Oct 28 2007, 04:19 AM' post='4455079']
this is not the right place



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