Possibility to get a commercial loan with less than 20% down

Possibility to get a commercial loan with less than 20% down

Member since 2022 · 46 posts · 7 votes

Is this possible?

The property I'm looking at is currently fully rented out (one unit is on NNN).
is it possible to qualify to put less than 20% down since the building proves there is income already? 

Or is it possible to get an assessment on the property and if it’s worth more than what I’m buying it for to pay the difference?

(Example property is selling for 500k. I get an appraiser to say it’s worth 550k. I pay the 50k difference for 20% of 500k). Does that work?

I obviously want to invest in this property but want to see if there’s other ways than having 20% cash on me of the properties value. 

Thanks all!


0Reply
13 views

2 Replies

Jump to latestLatest
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Tyler J.

    That will not work. Traditional commercial financing is 20% min and usually 25%+ and a DSCR of 1.1 -1.25.

    Your best bet would be seller financing

    7e investments53 Reviews
  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
    4y

    @Tyler J., to piggyback on what @Chris Seveney said, it's either seller financing, or finding an investing partner.

    Good luck!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.