All Forum Posts by: Zack R.

@Joel Owens instead of “here” I should have said “here in this situation.” Thanks for your time and input.

@Joel Owens to be clear I’m not looking for investors or a loan from BP. I’m asking questions about the loan process.

@Joel Owens I’m sorry but I don’t understand anything you just wrote…

Commercial development opportunity

I'm a CRE broker and one of our clients is developing a 200,000 SF warehouse in an incredibly competitive market. They will most likely lease this building quickly and then sell to an institutional buyer. They have given me an opportunity to be an equity partner in the project, and based on what I know about the market they will make a killing on exit. They don't need my money they are just doing this to be kind and we have a good relationship. I was planning on throwing about $20k cash in the project but I got to thinking there must be a way for me to get a loan to invest. I'd like to invest $100k total so ideally I need to borrow $80k. What is my best bet for a loan/lender here? Let me know what other questions I can answer as I'm sure I haven't provided enough detail. Thanks.

I work in commercial real estate. Our team represents tenants/users in securing warehouse space encompassing most of North America. We are tenant rep brokers. One of our clients is taking a stab at development for the first time, and is allowing us to participate in the deal (he doesn’t need our money, more of a kind gesture). Land has been purchased. The warehouse will be roughly 250,000 SF. I’ll be investing $20,000 of equity. Once the building is completed, we will secure long term tenant/tenants and then exit the asset. We often sell our clients assets, but this will be my first time in participating in the deal, along with earning a normal brokerage fee. I expect this process to take about 24 months from breaking ground to exit. Wish us luck!

$100k to invest.

Purchase one rental for $100k, no mortgage.

Use the $100k as several down payments on several homes.

Two different paths and I’m sure there are plenty of pros and cons here. But I can’t think of them. No mortgage sounds easy and returns would be higher. But then again I have no clue what I’m doing. Thanks!