Due Diligence before or after finding an equity investor

[Joseph Carey]

Hello all! I am a beginning investor owning two SFR but really crave getting into the commercial real estate world. After all the research I could do on my own (i.e. books, internet searches etc..), I have a question that I can't find the answer to. I understand that if I find a property that is profitable and has a healthy financial history that the bank will typically offer a LTV of around 60 to 70% nowadays. I would definitely need an equity partner to back me up for the 30-40% needed as well as closing costs etc.. Many of the requirements involved in the due diligence phase can cost lots of money which I do not have. However, I can perform the financials on the property which will at least tell me if the property is worth putting it under contract and proceeding with the rest of the due diligence. What is the typical order of events? Do I need to perform ALL of the due diligence myself and then search the earth for an equity partner or do they understand that many starting investors like myself need their capital even for the remaining due diligence on the property? I do not want to approach possible investors without knowing the proper procedure for fear of "blowing it" with them.
Thanks for the info!!

Joe Carey