Specialist · Melbourne, FL · Member since 2018 · 40 posts · 11 votes
I’m looking to get started in multi family property and I’m trying to start in my city. I have some money to put down but not quite enough. I have no experience in real estate and I’m not interested in single family. I was watching a video from commercial real estate investing advisors and they mentioned how no experience is necessary to qualify for a loan if you live local to the property you’re trying to purchase. Is this true? If so does this work with a hard money lender as well?
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
8y
Commercial lending is completely different and the rules are a lot more flexible. First, most lenders, on a commercial property, will be much more concerned with the "experience" of the property than with your experience. So, if the current owner's records show the property has produced a 95% occupancy rate over the last 5-years and the market rent is sufficient to support the amount being financed, the lender may not care in the slightest about your personal lack of experience. You need to talk with some lenders.
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
8y
Commercial lending is completely different and the rules are a lot more flexible. First, most lenders, on a commercial property, will be much more concerned with the "experience" of the property than with your experience. So, if the current owner's records show the property has produced a 95% occupancy rate over the last 5-years and the market rent is sufficient to support the amount being financed, the lender may not care in the slightest about your personal lack of experience. You need to talk with some lenders.
Investor · Lee's Summit, MO · Member since 2017 · 81 posts · 37 votes
8y
I am thinking the video said live in the property. And no, you don't need expeerience but the new experience might be painful. It's a way many got started. I think it'd s good way to go. One better is to find a mentor to walk along side for the first year.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y
Experience IS necessary. But it doesn't have to be your experience. If the property is currently being managed by professional management and that is going to stay in place, it is not much of an issue. If the current owners are managing themselves and you have no experience then you may have a problem.