O.K. I’m new to the board and I know this has probably been covered.
Have my eyes on a great commercial 10 unit apt building
Personal Credit sucks
Have nobody that I can go to and ask them for credit or cash.
Been told that by setting up LLC would’nt help because I already have to have established business credit before anyone would consider the deal.
This would be my first commercial project so experience is also a drawback.
HOW DO YOU GET STARTED IN THIS GAME IF YOU WERE IN MY SHOES? ::):
Hello, Are you familiar with a Hard Money Lender? They base their lending on your project, not your credit. But, they do ask for upfront fees and have higher rates than traditional. Also, you would need either some cash available, equity in other properties or some type of collateral. I hope this helps.
I am a broker. In the past i have done deals for people with bad credit, while managing to aviod hard money. it can be done but it is not easy.
You can also consider setting up a single asset entity with the owner and treat the property as a refinance. By doing so, the current owner will be using his equity in the partnership and the purchasing partner will be providing the sweat equity.
We have done several transactions like this and it works fairly well.