Commercial Mortgage: Advice For Your First Loan
July 7, 2016Commercial Real Estate Property: Your Quick and Dirty Guide To Fixing and Flipping
July 9, 2016
Commercial real estate can be a very profitable business once you get started, however, it can be hard getting the money needed for your investment. In this article, you will be able to find out to get the property you want without little to no down payment.
Everything in this world costs money we all know that, but there are always going to be instances when you will not have all the money up front. If you want to purchase commercial real estate you still can! The “Great Recession,” halted a large portion of the home renovation business a while. However, the fix and flip business is making a steady comeback.
A lot of commercial real estate properties require a down payment. However, if you are just starting out you may not be able to afford that. Do not worry you have a few options at your disposal. One thing that you could do is apply for a loan. Seems very obvious believe us not many people do not think about this before they consider buying. Many commercial lenders are willing to lend you the amount you need to pay for the down payment.
In lieu of a loan from a commercial real estate lender, you could also split the cost of the property with a business partner. Sharing the expense of your new property will make it much easier to pay off the down payment. It also opens the door for new things you may want to do. For instance, instead of only being able to only spend $10,000 on repairs and enhancements, you could share all the expenses and turn a better profit in the long run.
You are not tied to going the liquid money way for the down payment on your commercial real estate property
If you do not want to go the hard cash route to pay for the down payment on your commercial real estate property you still have many options. Some more experienced investors know to have other things they could possibly trade or offer in place of money. For example, you could use collateral to pay the down payment. This can range anywhere from a car, motorcycle, watercraft or anything of value.
If you have the connections, you could potentially trade services, as well. Say you are a plumber and you are moonlighting as a real estate investor on the side you could offer your services on any changes they want to make to their new home.
You could also trade houses with the owner of the property you want to buy. This takes a little convincing and a lot of confidence on your part, but this is a great option if you already have a commercial real estate that you are willing to part with. You want to make sure the home or vacant space you want to trade has equal or greater value.
What if I do not have any commercial real estate property I want to trade?
In this event, you could ask the seller of the property to transfer their mortgage to you. This is a great way to quickly get the property that you want to buy. However, this only happens if the owner wants to get rid of the property quickly. While you are taking on a new mortgage depending on how well you refurbish the property you could pay the mortgage off fairly quickly.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.