How to Fund Commercial Purchase and Renovation?

[Jacob Simpson]

My partner and I are evaluating a 2 story commercial space that is zoned Mixed Use. We are considering having Office Space/Retail on the 1st floor and then Apartments on the 2nd floor. What are some options that you have used successfully to fund the purchase and renovation for such a project? We believe the reno costs will be about 50% of what we are able to purchase the property for.

[Ash Patel]

I have done a ton of mixed use buildings. I just received appraisals on two buildings that are full gut renovations. The appraisals came back at over twice what I paid for the buildings, which was shocking. The reason for that is how highly they are valuing apts right now. In Cincinnati, value add apt go for about $35k/door. The appraiser wrote in $75k/door ARV. Who would have thought appraisers would ever overvalue a property?