Hello,
First time on the forum.
My situation is this:
I am looking at a investment property located in PA which has an asking price of $245,000. The property is 7 acres and has a two bedroom-one bath rental unit on the second floor (with area rentals going for $900 to 1,200 a month) and large retail space located on the first floor (retail comps approx. $800 - 1,200 a month) . The property needs some TLC and retail value after fix-up (approx. $30,000 with my own labor) - on the conservative side is approx. $350,000 $400,000
I am looking to purchase the property for the retail space located on the first floor. I have another investor who will be the co-borrower for the property as well.
My question is, after talking to my local bank, they said I typically need 25% down for commercial property to finance a commercial loan. Are there any loan programs available to purchase commercial properties with 100% financing? My co-partner and I do not have enough capital to purchase the property with 25% down - plus closing costs.
I have just recently borrowed equity on our house (through our local lender) to pay off some debt and make some other small investments. I have around 15,000 to 20,000 in capital plus my co-borrower can match that as well, however with closing costs and business costs, I really need close to 100% financing to make this work. My FICO score was just recently checked at 755 and my co-partner has good credit and income. Again, is there any program or lender to make something like this work or is this just a pipedream?
Thanks, Dmann