How can I help investor to buy commercial property without good credit and cash? Jocelyn R.

In Buying Property - Asked by Joy R. - Jul 19, 2010
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Answer(s)

Rob B.
Chandler, AZ

You could partner with him in an LLC or LP and use your good credit and cash. Would you do that considering the risk involved with this individual? If not why would you expect a bank or an owner-financed party to "partner" with this person?
Rob Baird (CA RE License #544165 - one of the oldest active licenses in CA)
951 515-5855

Jul 19, 2010
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Joseph F.
Rockville, MD

Rewind the clock about five years.
Why would you bother working with a client without cash and/or decent credit? If you found a deal that you could structure creatively enough to put a buyer into without cash or credit, you wouldnt have to search very hard to find a buyer to put into said deal. Sounds like your time would be better spent with higher probability clients. Wedging unqualified dreamers into projects they cannot sustain is obvioulsy not prudent - for proof see the current economic climate.

Jul 21, 2010
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Alan C.
Broker/Agent
Suwanee, GA

It's often a waste of your time. It's fairly easy to buy residential deals without cash or credit, but commercial is a more complex invesment with many rules that will stymie the no-cash types. While you may be able to cobble together some kind of deal, the amount of time you spend on it and the probability of closing are very slim. There are plenty of qualified buyers for you to focus on.

Jul 22, 2010
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Dan T.
Richmond, IN

Find a desperate seller?
Investor has Bad Credit and No cash?
If you're a real estate agent...how would you be paid in the process?
Perhaps the question is this...
How can I find a seller who would be willing to take the risk of selling (on contract) to an investor who is a poor risk?...and at the same time, be willing to pay a commission out of his/her pocket, in addition to assuming this huge risk?
I would simply tell this investor that the odds of finding commercial property for him/her (considering their credit rating and available cash situation) is not a reasonable goal at this time.
This scenario (no credit and no cash) is most likely the culprit for the big crash the housing industry suffered recently with regard to residential property loans...
Good luck Jocelyn!

Jul 26, 2010
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