Lease Doc - The buyer sent over the lease drafted by AIR COMMERCIAL REAL ESTATE ASSOCIATION STANDARD INDUSTRIAL/COMMERICAL SINGLE-TENANT LEASE – GROSS (2001).

I wish I had a good cap rate for commerical, but I just have experience building them.

Does the same rules you need to apply to learn how to wholesale commercial property apply to residential property?

Commerical purpose notes are Notes that HML use.. will say it right at the top.. this to make sure they are not confused with owner occ Dodd Frank compliance notes.2X 3x  is like commercial lenders who want a 1.25 or above debt coverage its my simple way of sayingif I have a note that is 25k in first position paying 10% a year or 208. a month.. and the rent coming in on the property is 750 bucks  which is common in my world.. you have a greater than 3X coverage this makes for a VERY safe first position note.. not many landlords even if they miss a month or two of rent are not going to keep a 208.00 payment going and lose their property  would you ???? 

Now - once you have owned it for 90 days (best to season a little for rates) you would use a commerical loan (dscr) which yes is going to be a commercial loan and would need to be within an LLC.

I think the best are rural properties that can become commerical within a few years.

Just an FYI... if you deal with a commerical lender (servicing the note in-house, or in 'portfolio') there is no reason why you can't borrow as much as the lender will lend.

I think the key here is to get a 5 year baloon commer isl mortgage as you described bjt ammortize it over 15 years instead of 30.

These are precious to me and I dont want to give them up for a more expensive commerical loan unless I am up against the 10 loan limit and I am not there yet.

But...You're not acting as an agent if you're a principal in the deal technically, there are A lot of grey areas in Wholesaling...A good idea is to find a way to actually close maybe even using transactional funds or at least attempt to raise capital for the purchase, just like syndicators for commerical real estate, that way if you can't raise the money and an assignment is the only option you'd pretty much have a valid contract because your intent was to close.