Is it still possible to get low/no down financing on commercial if the deal is good enough?

For example, if the property is a significantly under-priced distress sale, or has 20+ cap rates, etc? I'm seeing some deals that look really appealing but a little outside my reach at 25%+ down payment. Is it a waste of time to even pursue them, or is low-down still possible in "special cases"? Thanks.
In Buying Property - Asked by Daniel M. - Oct 28, 2010
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Answer(s)

Rob M.
Broker/Agent
Seymour, IN

Hello Daniel,
You raise a good question about your search for no money down financing. In today's economic environment, increased banking regulation and stringent lending guidelines, it is nearly impossible to find loan-to-value ratios less than 70% for retail properties, you'll find 75% for mulit-family with a local lender, but to build your hopes on something greater will be tough. A good idea for you maybe to invest your money in real estate stocks, or to seek residential properties especially those REO opportunities to repair and lease or possibly flip. Also, note federal and local laws in regarding flipping and timelines. Good Luck with achieving your investment objectives.

Oct 28, 2010
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

Unfortunately no conventional lenders are financing deals with less than 25% down. SBA is an exception if the property is going to be Owner occupied (>51%) and the borrower has great credit, income, assets, financials, etc...

Oct 29, 2010
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Gregory J.
Broker/Agent
Boca Raton, FL

it is possible .You can get a seller to Financesay at least 40 percent,If they agree to be put in second position.Then a Hard Money lender will take a chance on you,and Loan to you so your job is too find a very flexible seller that just needs to get out.

Oct 29, 2010
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Lisa A.
Owner/Investor
Phoenix, AZ

Daniel,
We work with investors like you ALL the time.
We are a real estate investment firm and we pool investors together so they can achieve the same buying power as larger investors. The firm sources and puts together the best deals available, the best financing available, handles closing and asset management. Investors receive a high rate of return while being a passive investor. You receive a check every month, typically based at 8% and large equity positions based on investments. If you have at least 50K, we have deals you can get into right now. Send us an email - info@newriseinvestments.com to learn more, view our website or call our Director of Private Equity, Greg Rigby 863.812.4290.
Best of luck!

Oct 29, 2010
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Nancy G.
Broker/Agent
Sandy Springs, GA

If you are an owner occupier, you can apply and possibly get an SBA loan which calls for 10% down. Do you need help? Write or call me - 7705781067

Oct 31, 2010
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Financial C.
Lender/Mortgage Broker
Los Angeles, CA

yes 100% financing is still available for certain transactions. Commercial mortgage broker Financial Compound works with lenders that will still do this high leverage to cost. Typically this involves a land transaction, busted residential development, or other type of property with significant upside potential and where the financing amount is still at a historically low cost basis. Joint venture equity is also available where the sponsor is not required to invest any cash into the partnership. While these types of transactions are not so common in 2010, they do exist and commercial mortgage broker Financial Compound has arranged more than a dozen of these types of transactions. Contact us at 310-260-5900 x103.

Nov 5, 2010
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