Commercial Financing question

[Mike Anderson]

I am in negotiations on a property that is classified as Legal commercial mixed use. A doctors office in the lower section and an apartment above.

My question is if there will be any difference in dealing with the mortgage lender in the type of loans that are available with commericial properties Vs. Residential. My concern is with the amount of a down payment that will be needed. I am working with a small amount of liquid assests.

When I was on the phone with the Originator he said something along the lines of having to increase the Downpayment because it is zoned commercial and the property will be used for a commercial purpose and that he may have trouble pushing the loan through on a 30yr bi-weekly ....I have a meeting with him shortly and would like ideas and ammunition.

Thanks
Mike

[Tom McGiveron]

what makes you want to buy this particular property?

just curious.

also - commercial loans are usually 20 year terms.

they require 20% down - but like anything else - there's always ways to get around that - but you'll need things like

financing plan
business plan
business credit (this would help)
of course CASH is always good.

the property itself can also help you out especially if it's

currently rented
a strong history of high rate of occupancy
has competitive rent rates or very good potential for increasing this

what will hurt you is

your lack of reputation/experience/cash.

those are going to hurt. but explore your options.

focus first on what exactly you want from the investment.

i'm NOT a commercial real estate expert. i've just dabbled in it and i actually have a meeting with an excellent broker next month after the holidays.

start small...see where you can go with it.