If I were to start wholesaling as someone with a relatively small amount of capital I would skip SFR and wholesale commercial property - specializing in one or two property types.  

Hi, I am a new investor and I'm contemplating buying a commercial property to hold.

Im wondering details how commercial loans work.  

Unless of course, you are referring to commercial rents. 

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The property is commercial and most people tend to put into LLC.

I've since bought an office, a commercial flip, another single-family house, a six-plex, and an 11-plex all off-market.

Sometimes, a commercial policy (businessowners or package) is used but generally that is more expensive. 

Most require skin in the game on deals and work like this:Rates: 10% to 14% (Most Deals are 12%)Terms: 1 Day - 24 Months (Most Deals are 6 months)Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 Max Loan: 65-70% of After Repair Value(ARV) 100% Rehab Financing Available (Most Deals require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

So I started trying to get creative on how to create a win-win-win for all.Here’s how it went down:I got the sellers to agree to an asking price of $180k, a full $40k over what they originally wanted.In the offer, we included a seller credit of $34k.This strategy allowed me to cover the extra commission for both the buying and selling agents and ensure the seller got exactly the cash they wanted should they have sold it at 140k.With the seller credit, this reduced my total out-of-pocket expense to just $6k.I used a commercial DSCR loan product with a local bank.