BiggerPockets

There is a property were they are asking $90,000 it needs almost $200,000 in repairs Potential After-Renovation Annual Income: $100,000+ it will need hard money financing... If I can borrow enough money to buy the property, fix it up, and sell it under market value for a profit would that work? If I can borrow enough money to buy the property, fix it up and hold it would that also work? Also what are things to consider? Thanks in advance for all the advice and info.

j, this has got to be some kind of commercial office building or warehouse...

lalana, hardmoney is great if the numbers work after paying all the points and interest, but what happens once that loan is called due?? hard money is very short term (usually 1 year at the most)...you'll need a good bank to handle the refinance. is there a demand for this building where you think you can profit by selling relatively quickly? it's difficult to flip a commercial property bc buyers will want to see the past few year's operating expenses, rent rolls, etc. in fact, most banks will require this to fund the deal for your buyers if you decide to flip, so you'll be effectively limiting your pool of buyers to cash buyers if you only own the building for a few months..just something to consider besides the obvious questions like, "are you sure of the ARV and are the repair costs accurate?" don't forget, anything done on a commercial building is more expensive than residential

Thanks guys for your excellent input! That was the thing really I dont know who would purchase it after the rehab. I understand the numbers in investing in properties and making sure its a good deal. Yes this particular property is a commercial deal with lots of "potential" but like what was mentioned about the lenders I might pass due to the fact that I am unaware of who the end buyer would be. I know a possibility would be to shop it around, it is located by a college and transportation, in a really good location but this one may be a job for an expert or with an expert in such a property. I am going to just keep purchasing 1-4 unit's cash, rehab and rent them keep the rehab projects and refinance the one's I would like to keep and keeping 1 out of each 4 is a great way to write off certain tax deductions also. 3 properties that I would flip for immediate cash and 1 I would hold for passive income. Building a real estate investment Portfolio, then with the money begin to buy commercial myself. Not sure... any suggestions on that? I love commercial buildings that's where I am headed to so I'm getting my feel. Any comments and or expert advice on investing in real estate, building my portfolio, rehabbing, the latest techniques about real estate investments, entering the commercial market, or anything? Always up for some know knowledge...

Bryan How did you get into commercial real estate? Any advice for a newbie... All insight is greatly appreciated. Who know we may run into eachother on a deal or two when I get in the commercial field! Congratulations on your last deal!!! Love it~!

Hello Bryan, thanks for your reply and input. I am very proud of you making that move. I also prefer apartment buildings not really trying to get into office space, Just apartment buildings. Commercial yes it is a different ball game but I believe when you do it right it's a HOME RUN :) Many Blessings and much success!!