Residential vs Commercial
Hello BP, I am a newbie investor and looking for some advice. I have been actively looking for residential (SFH, 2-4 units) deals in my area but haven’t found anything I am sold on. I started passively looking a commercial deals ( small apartments) and found some things that peaked my interest.
With that being said, I am comfortable with doing residential deals, because I have a lender lined up and I have done the process before (specifically dealing with primary residences). Commercial lending ‘seems’ like a different animal when it comes to lending.
My questions to the BP community are below:
1. For commercial loans, how do they value you as a business if you don’t have any rental properties in your portfolio? Or is commercial only for the experienced investors?
2. Are there any investors whose first deal was commercial? Good, bad, lessons learned from experience?
3. For experienced commercial investors, are there any best practices you would recommend in either the lead up to the purchase an/or owning small apartment building.
4. Any links to helpful commercial deals woul be appreciated!