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Updated over 4 years ago,
Is a 2nd lien mortgage possible for a commercial property?
I know a really good book i need to read on how to finance this deal - Investing in Real Estate with No (and Low) Money Down - but as I await it's arrival, i'd appreciate any advice on a current deal.
The property is a commercial 8-plex. List is $850k and it is very close to meeting the 1% rule and will be if rents are brought up to the market rate. The deal is what i've been looking for and will more than cash flow and should have room to appreciate. Through a few sources, i can scrounge up about $85k or 10%. With it being commercial though, i assume i'll need 20 or 25% down. (Correct me if i'm wrong.)
In this case, the crux of my question is that I know you can get a 1st and 2nd lien mortgage for a primary residence, is this possible for a commercial loan? I don't think i'll be able to BRRRR out of the deal over a short span, because the property is mostly occupied. If I can bring rents up over the next couple years, I would hope to pay off the 2nd lien mortgage and eventually cash out refi once rents are optimized but that will take time. Given this, I don't know if hard money is really an option that makes sense.
How can i make this happen?