Ive greatly enjoyed reading the posts on these forums. I have aspirations of owning NNN property, mult unit apartment buildings or storage commercial units and purchasing 1-2 properties a year by saving 30-40% of the downpayment.
However, I have a Chp 7 BK of less than 3 years related to a failed business. Is it a pipe dream to ever get financing if my credit is shot like this? In my favor, I am a high income professional (>500k/year) and six figures in liquid savings. The only debt I carry is low six figures in student loans that I plan to kill within 1-2 years.
What can I do 1, 3 and 5 years from now to put myself in a position to acquire commercial property.
Speak with a mortgage broker to see where you stand. Also speak with local lenders who know you (or will get to know you) so they can evaluate the situation without a fixed formula.
With a good income, savings and a bit of time, the situation gets better. You might be 80% of the way there already or you might need to do a few more things before you are in great shape. It will come down to the facts in your file.
If you are not all that credit worthy, you could joint venture with someone else. You can set up a buy out agreement before you purchase anything so you know the next steps.
Understanding commercial real estate is essential since there may be different rules that apply to commercial versus residential real estate. For example, qualifying for a commercial mortgage may be different from qualifying for a personal mortgage, since in many cases your ability to get a personal mortgage is based solely on your income while your ability to get a commercial mortgage may be based on the income that is generated or expected to be generated by the property.