I took the buyout at Ford so we want to buy a party store for our income source. However we have no money to use as a down payment the price is 500,000. Our credit scores are both 625 and we used our money to clean up credit. Is it possible to get into a commercial property for zero down, at this point I would accept pretty much any terms. The property is priced at appraised value and the seller will not help with any financing. I would appreciate any advice.
Lorrie,
Based on the information you provided I think you will find it very difficult to get a 100% LTV commercial loan. You credit scores while not bad are not great either (no offense), you have no history of running a party store, you have no money for reserves, the seller will not carry back a note, and you are not buying at a discount off of appraised value which would help give you some equity. You will probably have to let this deal pas you by, and start saving for the next deal that comes along.
Do you think I could get a private lender to loan me the money for the down payment?
Not at full appraised value. You would need to be buying at 65-70% to get private money. You might look around for a partner who would put down the money and take a larger equity cut.