Commercial Lending Loopholes?

[Devante S.]

Hello, I am a WI realtor focusing in on helping multiple clients acquire commercial investment properties outside of just residential investment - (Office Spaces, Motels, Operating Businesses, Etc.)

However, my buyers and myself have been running into a consistent issue - banks requiring 25/30/40 percent down payments on the commercial real estate. This requirement is simply not achievable for some of my newer investment clientele, which is a tough cookie to swallow when a lot of these folks have big dreams and aspirations, and an ability to finance these at a slightly lower rate.

Some people in my network have no issue with this, but for those that want to invest commercial but can’t make the down payments, I am asking the BP community to share any insights on commercial loan loop holes, decreasing down payments, maybe even ‘loaning’ down payments, whatever is feasible.

I know it seems far fetched, but I will always see if there is any possible way to make something happen for my clients no matter the request. Thanks.

[Joel Owens]

The answer is to stop working with non-ideal clients.

Are there alternative ways to do or try something? SURE

The odds of it happening are one in many thousands or more especially in sellers commercial markets. I stopped many years ago working with Unicorn type buyers that want the world and have 10 cents with a dream. I have potential buyers fill out my form and review financials. We hop on a call and then I have them sign an exclusive agreement. If at anytime in the process they give resistance I let them know we are not a fit on move on to the next inquiry and I get LOTS of inquiries on a weekly basis. Happy to take on new clients but ONLY if they fit my criteria and follow the process I outline. I have been doing this going on 18 years so I know my process is good and it works because I have done it over, and over, over again.