Posted by Ed Garcia on July 15, 2002 at 11:16:49:
Remember, each deal is different and will stand on it’s own merit, when you purchase a commercial property, you’re purchasing an income stream. There’s a deal, and then there’s a DEAL. Go to the success stories and look up an investor named John Butler. You will find that John ended up closing on a deal on a 24 unit apartment building with only 5% down that made him approximately $175,000 in equity when he closed.
The two main components in the deal was one, deal structuring, and two, the lender as well as John knew that the property had up-side potential in the deal based on market rents, and was worth the $175,000 more then what John paid for it.
I helped John get that deal down working with a bank I never stepped foot in. Originally John was TURNED DOWN by not one, but 3 different banks. The reasons were, He did not have enough experience in owning and managing a complex of that size, and the banks all required 30% down.
Had that deal been mine in my area, I know I could have 100% financed it.
Many times a deal speaks for it’s self. I’m, sure you’ve heard this said before, If you have a good deal, the money will come.