Question on buying a commercial property

3 Replies

Hi, so I'm starting out in RE investing and I have a buddy who is a general manager for a company out here in Salt Lake City, UT. They're looking for a new location and he approached me with a potential commercial property. Im looking to buy the property and lease it out to the company. Is there a way I can purchase a commercial property with low or no money down?

Any feedback is appreciated, thanks

Originally posted by @Mikky Chanthavong :

Hi, so I'm starting out in RE investing and I have a buddy who is a general manager for a company out here in Salt Lake City, UT. They're looking for a new location and he approached me with a potential commercial property. Im looking to buy the property and lease it out to the company. Is there a way I can purchase a commercial property with low or no money down?

Any feedback is appreciated, thanks

 Commercial financing will require 20%-25% down

One of the qualifications is experience, so if you do not have any you may need to partner with someone who does.  

I had friends looking at a commercial property and had 25% down but the lender would not lend to them because they did not have a lot of experience in the business, so they asked me to join the LLC and be a partner so they would get approved - so that could be a challenge for you

Hey @Brie Schmidt , thanks for your input.

Another question if you don't mind.. If I purchased a piece of land and leased it out. Would that require the same qualifications?

If so, what is the difference from purchasing a piece of land to lease than a multi family home?

Thanks!

@Mikky Chanthavong - it depends, apartments with 4 units or less is residential and loans are made to a person using your income and the rents to qualify.  anything with 5+ residential units or a business is a commercial loan

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