Financing for Mixed Use Property (3 apartments and 2 storefronts)

2 Replies

I came across a mixed use property listed on Loopnet for $650K - it's a steal in our area but it's based on really deferred maintenance - somehow this property still yields close to $6700 per month based on very creative ways to produce income.. basically renting out every inch of the property for storage and $200 per parked car. $450 for storage in the garage etc. I love the location smack dab in a quaint upscale town and would love to reposition it. Trouble is that loans for mixed use properties require 30% down. We have managed to save up to be able to spend $130K including closing costs but that wouldn't be enough for a conventional commercial loan. I would have accepted it and moved on if it weren't for all the inspiring people on the BP podcasts.. should I contact the owner (I think it's his name on the income report the realtor sent me) and ask if he would consider seller financing, though it's already listed with someone?) 

Would also like to hear your thoughts on mixed use properties as we only have a couple of multis but don't own any retail stores. Thank you!

Even though it is listed, it is still ok for you reach out to the broker and make a creative offer on the acquisition of that property. If seller financing is not an option, the broker will tell you.

Originally posted by @Anna Johnson :

I came across a mixed use property listed on Loopnet for $650K - it's a steal in our area but it's based on really deferred maintenance - somehow this property still yields close to $6700 per month based on very creative ways to produce income.. basically renting out every inch of the property for storage and $200 per parked car. $450 for storage in the garage etc. I love the location smack dab in a quaint upscale town and would love to reposition it. Trouble is that loans for mixed use properties require 30% down. We have managed to save up to be able to spend $130K including closing costs but that wouldn't be enough for a conventional commercial loan. I would have accepted it and moved on if it weren't for all the inspiring people on the BP podcasts.. should I contact the owner (I think it's his name on the income report the realtor sent me) and ask if he would consider seller financing, though it's already listed with someone?) 

Would also like to hear your thoughts on mixed use properties as we only have a couple of multis but don't own any retail stores. Thank you!

 Contact the Realtor & give them your owner financed offer. Note that it's a long shot at best. Most of the time sellers want a clean sale as opposed to the ongoing risks & lack of liquidity involved in an owner financed deal.

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