I am currently looking at a Strip Center that has 6 units (Retail, Restaurant, and a bar) They are asking $875,000, however the property needs some work so I only want to pay around $700,000 for it. Some of the repairs are a concrete floor and floor covering in 2 units, wall and ceiling in one of those two. Restrooms in most if not all. and just a few cosmetic. I am needing some help finding alternative financing options, I know my credit will not allow me to purchase the property conventionally so that option is out of the question. I have posted a few ads in our local craigslist to find investors with no help. I have ran the numbers and it looks like with the current rent the property would be making around $57,600 a month so around $116,000 per year of course that is before all the other expenses. I am looking for someone who can help me with 100% financing as I do not have enough in savings to put down. If anyone can think of any other creative ways of doing this that would be great. Thank you for reading. Any comments will be greatly appreciated.
I haven't had any personal success, or attempts, in the commercial space. Therefore, I would weight my advice in the lower spectrum of usefulness. However, I'm curious about the numbers you're looking at:
Based on residential numbers preliminary analysis, it looks like your offer price would be too high to obtain a reasonable cash flow, unless you are successful in obtaining 100% financing. Which brings up the follow on, is there any equity in the deal that a lender would be willing to use in lieu of a down payment at that price point?
Maybe I'm missing something big picture? Are the units all triple net, therefore significantly reducing the expenses considered?
Sorry to reply with more questions than answers, but I feel like there is a good opportunity for learning.
the best I could do at this point and time is I would offer to manage the whole place for as long as I need to. And of course the payment each month. The loan would be for 5 years at that point we would refinance the property.
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