Looking for tips to get into commercial real estate

[Matt Heath]

Hello Everyone,

I am trying to get into commercial multi family apartments and I have 32k saved up in the bank along with my 4 unit I already own. 

Is it possible to find a deal under market value even if you don't have the down payment and still be able to get a loan? 

Say you are trying to purchase a property for 400k and it appraises at 500k. Is there a bank out there that will let you use the equity as part of the down payment on the property? 

How much do you need to get started? What would you suggest for tips. 

[Svetlana Foley]

6plexes and higher are considered commercial and have different financing rules - there are just a few banks that specialize in commercial properties. Even commercial bankers do not like to loan out money for the city of Milwaukee purchases. You also need to keep in mind that it will be extremely hard to HELOC/use equity for future acquisitions if the multiplex is in the city, for the same reasons, lenders simply do not want to do it. I suggest you start building your portfolio with 4plexes and under, since they fall under SFR loan rules and are much easier to get a loan for, and you will have more options in using built-up equity in the future.