SOLD $375,000 - Multi Family
866 Dewey Avenue Hagerstown -Sold, Sold, Sold !! Another successful closing today, Well maintained and unique all brick corner building in the North End, 7 unit, great Multifamily Property in Hagerstown, once again got it to the closing table, working on deal with few bumps along the way, the important thing is that both, seller and buyer got what they wanted and are happy, now looking for more listings, have plenty of buyers, great deals out there for the regular investor, or a new investor, Give me a call today
Making The Move To Commercial Real Estate?
Three Ways To Finance Your Purchase
Commercial properties are where real estate investors see the best returns, but it is difficult to get the money together to purchase a commercial property. Once you get your first property or two into your portfolio buying more properties becomes easier, so you should seek as many different financing models as you can to make your first purchase. In general you will find that there are three ways to finance commercial properties without going through a bank.
Lease, With An Option To Buy
One of the most popular forms of commercial real estate financing in today’s market is the lease to own model. In this financing program, the property owner allows you to make a small down payment, and then make monthly payments over time. Part of each month’s rent is then applied to the principal value of the property, and within a designated period of time, you own the building. While you might wind up paying more for the property than you would if you’d bought it outright, the lease option gives you an out, should you decide that the business is not what you wanted. Be careful with any kind of lease to own agreements, and make sure that the contract is reviewed by your attorney before you sign.
For Sale By Owner
While the lease to own option is a little more common, there are still property owners who are willing to make the sale direct to you. In order for this to work, the owner has to hold the title, with no liens, and they must be willing to accept payments over time. Most of the time you can get a lower purchase price when you agree to buy the property outright, but the contract is nearly impossible to break without serious consequences. Expect to make a sizable down payment on the property and make sure that your contract includes language that prevents the owner from selling the property out from under you.
Real Estate Syndication
The first two options are ideal when you want to buy a small property, but when you start looking at larger commercial properties, you will want to look into syndication. A syndication agreement is basically a partnership between several different investors, each of whom owns a small part of the property. Everyone gets their money back as the property generates rent, and any maintenance expenses are shared among the members of the syndication. The best part about a syndication deal is that you don’t even have to put up much of your own money out of pocket. As the person who put the deal together, you earn fees that can be put to use as your contribution to the purchase.
No matter what your current income level is, you can get involved with commercial real estate today. Look for alternative methods of financing and try to find partners who are willing to share the risks, and you can make your first purchase soon.