No experience needed if you live in the area your buying

[Stephen D.]

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?

[Hattie Dizmond]

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.