Updated about 7 years ago on . Most recent reply
10% Down on Commercial Real Estate
Hello everyone! I am currently looking to purchase a commercial / mixed use building but a majority of my funds are tied up in closing on two other properties. I am really trying to only pay 10-15% down so I can leave myself some money to make upgrades to the building before renting it out. The owner of this building is not really into seller financing and the banks I talked to (even a small local) want 25% down. This would be my first commercial property so I have no track record in this part of the game. Does anyone know of any institutions / companies / ways to find commercial financing at 10-15% down? I'm in Washington State btw if that has any bearing on anything. I appreciate any suggestions and insight. Please and Thank you!
Most Popular Reply
Hey @Michael Wallimann - If an SBA program doesn't work out for you, I would second @Jason D.'s comment. Consider bringing on an equity partner to bridge the funding gap and provide any experience the lender may be looking for. Alternatively, you could seek mezzanine debt, which would cost you a little more interest and carries a higher risk. Sound like you're doing some great things. Best of luck!