I have less than desirable credit ~600 (had a business loan that I defaulted on a few years back). So I'm looking to find a deal with seller or "creative" financing. And I am looking for a commercial space (with live-able area or apartment). I'm hoping to live in the space and rent out to an additional tenant or to a business. A duplex or triplex would be ok as well.
I need to find a location within a densely populated city with space to safelyhouse 2-3 vehicles (for my other business), outside of space for the vehicles, I do not need the commercial space. The big thing to me is housing multiple vehicles in a central location of the city (Chicago is the primary option but would consider a move to another densely populated city like Vegas, Houston, or Atlanta..... tourism matters for my business)
How would you guys proceed with trying to acquire a deal given my situation? I know this is open-ended and full of variables, but basically I need to move to a more central location of my city, or to a central location of another city, and in doing that I want to attempt to put my best foot forward on making that next move an investment property. Thanks for your help, don't rip me too hard for being a noob.
@Aaron Lang What is your budget? What access to capital do you have? Since you are trying to use either seller/creative financing, dialing/driving/writing for dollars is a good place to start. I would start with pulling tax bills in the areas you are interested in to locate the owner's information. If you can find any delinquent tax bills that is a plus and potentially means a motivated seller. Write a lot of letters and don't get discourage! Let me know if I can be of any assistance!
@Joshua R. Ideally, I'm looking for a no-money down deal with a payment/mortgage of around $1000, I have roughly $1500 in monthly discretionary income after taxes. I'm hoping somehow I can find a way to put no money down, and have my monthly housing expense covered by a tenant so I can free up additional monthly cash flow to expand.
I see you are in the Chicago area, does something like this sound feasible? or is there likely better markets for this? Obviously I don't have a ton of extra money and sub-par credit, and I would want to be relatively conscious of the part of the city I am because of my need for several vehicles to be safely parked consistently.
That's why I was considering commercial deal because I've noticed in some parts of the city the commercial properties are less expensive than SFH in the same neighborhoods.
@Aaron Lang Great to hear you are looking to make the jump!
Financing, even with less than stellar credit, is an obstacle that can be overcome if you can find the great deals. There are hard money, private money, investors, and partners you can consider who will look less at your credit and more at the deal you bring to them.
As for finding the deal, @Joshua R. gave good suggestions. You may also want to start networking multiple brokers in the area you are looking for to help you locate on market, but especially off market deals.
Make sure you are practicing analyzing deals, so you can know you have a positively cash flowing investment and not a cash suck.
@Aaron Lang I think anything is possible with the correct amount of hustle to make it happen. You could structure an off market deal that can meet your desired criteria, but it will definitely come down to finding a motivated seller willing to meet your criteria. Also since capital is a concern, have you thought about leveraging a partner to bring the cash for the purchase? What areas are you looking at in Chicago for your purchase? I think Chicago is a great market with a lot of great potential. Since it sounds like landlording is apart of your plan, I would make sure you are familiar with the pretty strict landlord laws in the city.
I am sorry but this sounds close to almost impossible.
$1,000 monthly budget
A $1,000 budget is basically a house at $100,000
I would love to be proven wrong though.