Advice On Commercial Property Investment

[Pierre Clark]

First of all, this is a great website and forum. I'm just now posting after being a member for some time. I have learned a great deal so far from the various posts. They provide a lot of immediately useful info. I am hoping someone out there can provide some info on a commercial project I am working on.

I have the opportunity to purchase three multi-unit buildings: a 10-unit, a 33-unit and a 62-unit with 6 commercial spaces (what we call a mixed use building). My calculations on the cash flow say more than $70,000 a month on the apartment units (plus the rental of the commercial spaces) on a total investment of $2.95 million ($390K, $560K, and $2MM) which I can probably negotiate. I have a management company that can manage the properties. I have set up an LLC which could be the purchaser ( I am the sole member).

My questions: how much should I offer as a downpayment or earnest money? I have a banker I am talking with but would a commercial mortgage lender or private money person be better? What percentage should I pay the management company for managing the building if I decide to hire a management company?

I know these are specific questions but any answers and insights would be appreciated.