Posted by ray@lcorn on May 22, 2007 at 11:51:58:
First and foremost, this is generally not a no-money down business. Banks require cash equity of at least 10%, and maybe more depending on borrower’s net worth and experience level.
Second, even if you do put a deal together with all borrowed funds you may soon be wishing you hadn’t. Take a look at this article for further discussion about the dangers of over-leverage: http://www.creonline.com/articles/art-203.html
Accessing equity funds is the primary challenge for most folks making the move from SFRs to commercial properties. There are numerous ways to raise cash, but all will require planning and execution well in advance of the need. This will include making decisions about your investment priorities and then taking the action necessary to move forward.
A shameless plug, the first module of my book “DealMaker’s Guide to Commercial Real Estate” is targeted to that situation. For a full description and excerpts, see http://www.creonline.com/catalog/b-140.html
And a second shameless plug, if you would like the opportunity to gain the knowledge you need in a live workshop setting, and have a mentor for six months to show you exactly how to do what is taught, then you want to talk to Ed Garcia about his upcoming workshop, “How to Get Lender’s Fighting to Give You Money”. See the information web page at http://www.creonline.com/tveg_workshop/index.html or give Ed a call at 909-944-0199.
Best of dealmaking,