Here is my question, do I have to be loaded before I can invest in commercial properties?
I started my buesiness w/out any money in real estate about half a yr ago,dealing with single family house and 4-plex. Now I am looking into commercial properties, but I heard that usually you will have to pay 10% down for any deal. Now I only have about 50k in hand to invest.
Is that true I have to get more money? or are there any other ways to start, for example seller financing or partnership? where can i find more information?
i thought we need to come with 30% of the purchase price. I could be wrong…Please confirm, experts. Also there are fees that need to be pay upfront like appraisal,engineering cost, structure engineering cost, etc
i think it’s easy to buy but it’s hard to come up with the money to pay monthly bills, fees, and any emergency problems thus it’s always better to have seasoned money.
if you want to start with less risk, it’s better to partner up with someone who has funds. Form an LLC and do it right.
Best way is to order books on commercial properties, ask questions and learn from experienced investor.
If you are focusing on 5+ unit apartment buildings you will want to have atleast 10% available for downpayment, 20% if you want a good interest rate. Total transaction costs tend to be about 3% - 5% of the purchase price, but the seller can pay these.
If you have:
A: Strong equity in other properties.
B: Equity in other properties and a willing seller.
…There are ways to close with no cash out of pocket.
Triple Net Lease (AKA: NNN) - lease in which the tenant is to pay all operating expenses of the property so that the landlord receives net rent, frequently used to mean tenant pays taxes, insurance, and maintenance in addition to normal operating expenses
There is an Investing Glossary listed in the column on the left side of the page!