Do you ever purchase commercial properties with cash only?

For those who have purchased large commercial properties, do you ever do so with cash only?

Would it be worth the opportunity cost of tying up such cash?

What is your experience with this, even if you haven’t done so personally?

I am currently reading about a very large firm that I know (not The Blackstone Group) that borrowed 66% of the purchase price to buy a $136 million building in Brooklyn.

Sorry for so many posts, I’m just trying to learn…


 Some of the reasons to pay with all cash are a property that is closed and vacant, a property which is non conforming, a property which needs to be subdivided to create two or more properties, or a property that has been red flagged by the building department which is substandard. 

Sometimes we pay all cash upfront to own and control the property to plan out a remodel or new construction project. Typically a lender likes to see ownership and skin in the game to provide construction financing for new or remodeling purposes.


Cash is king

Cash is good leverage on properties that banks would run away from, distressed, vacant, title problems, etc

What is the largest property you’ve ever bought in cash?

Do you usually refinance after buying and improving a property with cash?


Yes, refinancing is pretty common after using cash, hard or private money or construction / rehab financing to remodel a property.


Well I know they don’t bring a briefcase of cash to the closing.

Yes, the return would be different. If it was an all cash purchase, the income would be greater because there is no loan payment.


Redstar please do not pull quotes off of another thread as we have no idea what context was intended when the original post line is not available!

Petergrant did not post in this thread!!!


That was not intentional.

I have no idea how that happened.

It really depends on how much money you have saved up and how much money you have to live on. Everybody is different.