Down payment

Down payment

Hvac · North Haven, CT · Member since 2015 · 298 posts · 79 votes

Hi,

Are there any other options for a commercial down payment than 20%? If so please help me out with my options. 

Thank you

Tony Velez

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  • Doug McLeodPro Member
    Investor · Cypress, TX · Member since 2014 · 496 posts · 205 votes
    11y

    You can always put MORE down, but I'll assume you'd like to put down LESS! 

    The easiest option is to borrow the downpayment from other sources (401k, friends/family, low interest credit card).  If appropriate, secure that against another property or the subject property (after close) with a second lien.  Get transactional RE attorney to write up any notes, deeds of trust, etc.

    The next best alternative is probably to get a cash partner and go in 50/50 or some agreed split owning the property in an entity with a clear operating agreement that spells everything out.  Get attorney and CPA advice.

  • Killeen, TX · Member since 2014 · 14 posts · 0 votes
    11y

    I do not think you can pay less than 20 percent down payment. I agree with Doug McLeod. You need to find some investors or other source of finances. 

  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    11y
    @Tony Velez You should be able to get a 15% down option. Also, it depends on the size of the loan. A funny thing happens in commercial lending. The more you borrow the more you can leverage.

    Upen Patel, Mortgage Banker

    Federal NMLS# 1374243

  • Hvac · North Haven, CT · Member since 2015 · 298 posts · 79 votes
    11y

    Yes my biggest issue is the big down payment. There's commercial deals in CT. I have to be a little more creative. 

    Thank you 

    Tony V

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