First time financing a commerical for newbie

[Michael G.]

Hello BP members,

I am looking for a professional who can help me understand how to buy my first investment property, I am looking to have a multiunit 5+ commercial, financing is my problem, what would someone advise me to do? This is my first time using this form, I live in Maryland, and I am active duty military.

[Travis Paez]

Commercial lenders will require at least a 20% down payment. Possibly 25-30% on your first deal. You could come up with this money by raising it from private investors(difficult with no experience), you could use a home equity line of credit on an existing home, or hit up a family member.
Another option to make your commercial deal more attractive to banks, family members or private investors would be to use your VA to buy a three or four unit(many available in DC or Baltimore, think old row home already converted). Live in and operate it as a multi family and within one year, you are an experienced multi family investor. Then you'll have better rates and terms with a commercial lender, and you'll have some clout when asking for money from a family member or private investor.
After a year, you can move out and rent the last unit. VA loans can be used again and again with the previous loan terms remaining in place for the whole thirty years. Usually only need one year in before asking for a new one, less time if you have a change of duty station.