I am looking to finance a commercial property with a mixutre of working with a bank and private funding for the money down. I have no cash of my own to invest but I know that If I can find the right deal I can attract investors.
My issue is having the earnest money to tie a property down before I pitch it to private investors.
I also need money to work with a lawyer to write up contracts for the deal. Do lawyers agree to be compensated after the deal closes?
Another concern is where to get the funding for a property inspection.
I have no money of my own but I have to start somewhere. I have pretty good credit but I am told the earnest money has to be money that has been in your account for a while and not borrowed. Please help me with some ideas.
I am looking to finance a commercial property with a mixutre of working with a bank and private funding for the money down. I have no cash of my own to invest but I know that If I can find the right deal I can attract investors.
First off, I think you are well over your head in this area.
Without you actually having something in the deal, excellent credit, credit worthy tenants, etc., your chances as I see them are virtually nil.
My issue is having the earnest money to tie a property down before I pitch it to private investors.
And what is it you wish to tie down? As I said earlier, you have virtaully no chance with Jack and Julls Homemade Bakery, John Smiths Old Fashined Shoe Repair, Lide and Cheatam Law Firm as tenants…NONE would be credit worthy,.
I also need money to work with a lawyer to write up contracts for the deal. Do lawyers agree to be compensated after the deal closes? Have you even asked an attorney?
Another concern is where to get the funding for a property inspection. How about you put somethig in?
I have no money of my own but I have to start somewhere. I have pretty good credit but I am told the earnest money has to be money that has been in your account for a while and not borrowed. Please help me with some ideas. Read the abovd several times.
Commercial/Industrial is an entirely different ball game from residential. In the foreclosure line things go…Industrial, Commercial, Multi-family and Single Family…people hang on to their homes to the last and let all the other stuff go first…Ask yourself…“If I were a Lender would I do this deal”???
Your questions are not that uncommon. What I would suggest is that you spend your time locking in some partners who have the ability to get financing and put the necessary down payment into the transaction. Your value would be locating a potential transaction and before you do that, I would urge you to sell your ideas to those you plan on working with to see how likely it is that you will have the financial partners you are looking for when that deal is actually found.
There are so many people doing the same thing so you need to be as prepared as possible as there is no such thing as 100% financing these days, unless a seller is willing to hold a note without any other financing involved or request that you have any funds into the transaction.
I admire your focus and desire to get into the world of real estate, but if you do not even have the finances to put down an earnest money deposit or pay for an attorney, I do not see how you will be able to close this deal.
Additionally, commercial properties are much more complicated and costly transaction. Everything costs more. The loan, the interest, the insurance, the taxes. It is not just the cost of the property but all the additional expenses that is going to creep up on you. It will be highly unlikely that you will find an investor that is willing to carry the financial burden.
My question: What are you bringing to the table?
If it is only a great deal, then perhaps you should search for a bird dog fee instead of a partner.