How do I purchase a multi-unit commercial property with little $

[Steve Hanford]

Hey everyone, I am new to the investor space but I have big goals. I like to turn old buildings into modern, useable, amazing spaces.

I have what I consider to be a great deal with a commercial property in the heart of a growing downtown area of my small town. This building is about 13,300sq. ft. and has 6 units which need a lot of updating to both the inside and out, the asking price is $129,900.

I have some great ideas of what the space could look like and sort of going with the "house hacking" strategy by turning one of the spaces into my wife's photography studio and renting the others to different business owners.

The thing that is holding me back is trying to find creative ways to 1. purchase the property and 2. finance the rehab. I don't have much to put as a down payment...

Am I biting off more than I can chew on my first go around? This just seems like a great deal with great potential.

Thanks in advance!

[Brett Radi]

You very well may be biting off more than you can chew, but will give you some ideas to think about and explore more on your own.  

-Like Cason said, 504 loan if you can manage to have your wife occupy 51%.  Should be about 10% down but keep in mind that the closing time frame can be quite a bit longer

-Owner finance the entire purchase

-Owner finance the down payment and bank finance the other 70% or so

-Equity partner

-HELOC for downpayment

-Cashout refinance your home

-401k loan 

-Borrow money from family and/or friends

-Sell everything you own and tell your wife you guys are moving into a crappy old building and going to fix it up.

-Purchase the building and then do the work a little at a time as you can afford to complete things

That should be more than enough to get the thoughts and ideas running on how to make it happen.