Updated about 5 years ago on . Most recent reply
Buying first commercial property
Hey BP fam!
Working on making the transition to commercial loans/properties, and considering a group sfh in a long distance market. I've got a few questions, but also I'm curious if anyone else has done this successfully. I'm sure there are some of you on here! Planning to manage these myself - while I'm not a PM, I work in a PM operations related software professionally, so I'm confident I can handle the work, with the help of some vendors.
Context:
Group of 7 units(5 properties) being offered together as a single package.
The intent is to purchase using a small amount of my own money, and cash from an investor to fund the remainder of the down payment.
Already have a small portfolio of 2 sfh, and 1 duplex, one of which was traditionally financed as a personal residence and is now a rental, and the other two were purchased with a partner under an LLC, though we were personally guaranteeing the loan.
Here are the questions:
1. If I'm purchasing a "commercial lot", can my commercial loan still be to my personal name? Or, do I need to set up an LLC?
2. If a commercial loan, is it possible for me to assume the note personally, or would this have to be a note assumed by an LLC?
3. My understanding is that for packages of this type, it's typically 20-25% down, is that correct?