How can I invest in commercial real estate....

[Chad Duncan]

I am wondering how I can invest in bigger deals like commercial multifamily homes and not use my own money. Do I use a commercial loan, and then the down payment come from a private lender, hard money lender and then refinance later to pay it back? Has anyone done this with any success?

Thanks

[Bill Gulley]

Originally posted by @Chad Duncan:

Ok. So if I pencil a good deal then I have a better chance at that? What of using the seller to carry a second mortgage to cover the down payment? Does that work out? If so, how do I approach that? 

Don't get caught up with gurus telling you how to do creative deals,  at least don't pay more than $9.99 for stuff.

You're missing the other parts mentioned, experience, knowledge, trust, a good plan, a take out exit and making it profitable.

I can tell you about dozens of no money in deals, wouldn't do you any good. 1. You aren't me or anyone else. 2. Each deal is different. 3. No transaction can always be replicated in other markets with other owners by other people.

What you are always doing is solving the owner's problem, meeting their needs, you do so at an acceptable level to your needs or you don't do the deal.

I realize everyone wants the 5 steps to wealth that works on any property, there isn't such a thing, doesn't exist.

Before you can be creative and think outside the box you must know what's inside the box, what the rules are, how transactions can be engineered, how to use other assets, monetary assets or your abilities. Your abilities hinge on a foundation of knowledge and I mean real estate knowledge and finance knowledge, not guru tricks.

Newbies keep wanting to go elephant hunting with a slingshot or BB gun, by that I mean they get their hunting equipment from gurus and investor forums full of off the wall stuff. Go to a proper outfitter, get the right equipment, ammunition and learn how to use that, then after you have some experience you can go for bigger game. :)