Would like to buy my first commercial property. 7 units, 2 beds per unit, 800-900sqft. asking price $300k. Building is 100% occupied, renting for $550 per unit (could easily rent for $625). - 2 blocks from large college campus. I believe the building would appraise for $425 - $475k. No figures on monthly operating expenses.
I have $30K to put down.
My credit is 550
Does anyone know what my chances would be of obtaining a loan at a fair rate?
Please post any questions if you need additional info.
As a real estate investor myself, I look for opportunity like what your offering all the time. Heres what I mean.
I have credit and experience owning investment property, this is good to the bank.
You have the equity dollars, the riskyest layer of the financing equation.
As a mezzanine lender, I (or for the purposes of this posting you undoubtedly have someone in your market like me, if you dont ill find someone) will put up some more down payment as a second mortgage, you pay me (or them) interest and grant a small equity position.
I am protected by the following:
you are going to work hard to protect your down payment
if you dont make payments, i create in your contract an agreement to take over your position in the property if you default
what i descripe has alot of similarity to a “subject too” deal people refer to in these postings, only in this case the deal is layed out on the front end
if all goes well, i (or someone like me) gets interest, a small equity kicker and someday you refinance me out.