Steps to Making First Commercial Deal

[Dillon McGough]

Good Morning BP Community,

I have a question about getting started in commercial investing, specifically large apartment buildings.  I have only recently been interested in getting started with commercial investing, and unfortunately had to dive in quicker than expected.  I recently inherited a commercial property that houses a restaurant, so my feet have basically been held to the fire right off the bat, but I'm learning a lot.  

I'm quite interested in apartment buildings. I'm currently looking in the wyandotte/trenton area in Michigan. I've become pretty comfortable in analyzing commercial deals and would like to get my first deal done soon. Specific deals aside, what would be my first steps to buying a commercial property? I've got an LLC for the property I inherited. I'm wondering, should I try to get a loan with the LLC that already has a property in it, or open up a brand new LLC? Obviously I'd need to find the deal first, but I'm just looking for basically a checklist with steps to move forward.

Thanks in advance!

Dillon

[Gino Barbaro]

@Dillon McGough

Hi Dillon,

That's a question for your CPA or attorney. I would not want to hold 2 different assets in one LLC. They are both going to be at risk if one of the properties gets sued.

Your focus should be on learning to choose a market, learning how to properly analyze a deal, how to secure financing, how to ultimately manage the property or hire property management once you take over the asset.

Choose the market, network with brokers, build a team, start to analyze deals, make offers, purchase and take over, begin to manage, increase value, refi and roll. 

Look for next deal

Gino