Originally posted by @Greg Dickerson:
Originally posted by @Mafuor Tanji:
I plan to invest in commercial real estate by the end of the year but I need to raise money for the downpayment first.
If I borrow money from an investor for the downpayment, would I be able to refinance the property and give them their money back after a year?
Lenders will not allow you to borrow the down payment. They are also requiring a years worth of reserves and lower LTV right now. The refi will all depend on how things shake out over the next several months and year, the property, location, value, condition, your financials etc. Things are changing almost daily right now and not getting easier. That's one thing we do know and can predict as the norm for a while.
Thank you! I didn't know that you couldn't borrow the down payment. Someone else replied to my inquiry and said I could partner with an investor as opposed to borrowing from them. I wouldn't want to purchase any Real Estate now because of what is going in the market. I know things will get better and I wanted an entry strategy for when it does.
Right now, my main focus is getting good at finding deals, raising funding, and networking with the right people. By the time everything starts picking back up, if I have connections, I could make a really good deal. That's what I'm hoping for.
