Are you a real estate investor who is seeking commercial real estate for your new acquisitions this year? Or are you one of many cash flow rental property owners that are starting to have issues with tenants or massive property repairs? Tired of dealing with Tenants, Toilets, and Late Payments?
I was talking with a local Private Money Lender and he suggested that I dump all my residential investments and pick up a distressed small to mid size apartment complex for better cash flow. I will still have headaches, but they won't be of migraine quality that you typically have with your average Fourplex. We talked about it at length and concluded that with good property management and a value-add plan a 20-45 unit multi-family apartment complex might be the way to go for me in my next step with investing.
Here is a quick snapchat of the commercial real estate investing advice he gave me and how I could use hard money loan if after selling my single residential property I still needed more cash to close a deal. Looking through Loopnet and Remax commercial listing below is list of the type of deals what we found.
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Fourplex Complex Rental Property Foreclosure Purchase
Listed in a small suburb outside of Dallas was a cluster of 6 Fourplex units. Our review found that this was a good deal because the property needs repairs and shows many years of neglect so the purchase price is discounted. This was also in pre-foreclouse
Discounted Commercial Note Purchase
An owner was sick and wanted to divest his portfolio. There was a 48 unit multifamily property and it offered note acquisition loan. The proforma indicated that it is in need of repairs and new fixtures in the apartment. Minor exterior updates for the exterior and common area.
Foreclosed 9 Unit Purchase
We even found a foreclosure on Loop.net. It was vacant commercial mixed-used property in need of minor cosmetic repairs and deferred maintenance. It was an older property with 6 apartment lofts, 2 office store fronts and a 2 story open flex space maybe used for a office or daycare.
20-Unit Small Apartment Complex Private Seller Sale
Family-owned property for many years. Property needs some work, but buyer would getting a discounted price due to private seller sale. I was really interested in this deal. The location was good, the size was manageable for my gateway into commercial investing and it was about an hour away from my house. It was an older property but there were no vacancies reported and they had long term tenants. The seller were even willing to work with you to “transition” management. Below are the basic details of the property and an example of the type of data you will find on loop.net.
These are all examples commercial real estate investing deals that are also perfect for hard money loans and private money lenders. Not all of these examples are killer deals, but all are good examples of how hard money rehab loans are being used to purchase investment properties in need of repairs or deferred maintenance. So if you are thinking of getting started with commercial real estate investing, don't let the price tag fool you – financing is much easier in this nice.