How to Start Investing in Commercial Real Estate with No Cash

[Matthew Pivach]

Hey everyone,

I'm here for some advice if anyone is willing to give it! I'm a lawyer that's looking to pivot my career from law to commercial real estate investing. Specifically, I'm looking to JV with my cousin, a commercial agent, on some deals. I've also got a buddy that's a commercial lender that's advised me that he'd be able to finance 80% of any deals that I'm interested in (depending on the strength deal obviously).

My question really pertains to that remaining 20%.  Does anyone have any experience in being able to obtain financing for the remaining 20% of commercial deals?  Finding a seller willing to carry that remaining 20% seems like an option, but I'm not sure how prevalent that actually is in the commercial world.  I was hoping for some advice on this from someone that might have experience in the area!

Thanks! Matt

[Taylor L.]

@Ari S. buys midsize multifamilies and other commercial properties by JVing with others. His partners do have an active role in the properties, as is required. In the syndication world, we bring passive investors into our deals who are 100% passive and just make a return on their equity. However, neither of these is 100% free. Both have fixed costs, and any reasonable partner is going to want you to have some skin in the game. Sellers carrying a note will almost always ask for some kind of down payment, too, because they're taking a risk on you and need to know you're serious.