Best advice for buying and financing first commercial property?
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[{"id": "d1ogujk", "text": "Can you clean this up so it makes sense? ", "replies": [{"id": "d1owpgy", "text": "what's confusing? I'd love to clean it up if it helps get more responses.", "replies": [{"id": "d1p7gun", "text": "&gt; Would like 2-5 tenant property including my own dental office\n\nWhat does that mean? Do you want to purchase a property with 2-5 store fronts? Do you want to purchase 2-5 separate units in a commercial condo? Where is this property?\n\n&gt; Not personally wealthy and interested in route of least resistance for financing without a large down payment\n\nWhat can you put down? Are you willing to personally guaranty the mortgage loan? How long have you been practicing? How is your credit? Do you have any debt?", "replies": [{"id": "d1p923x", "text": "I want space to lease to at least 1-4 other businesses within a single, larger multi unit commercial complex.  Property is within 10mins of a major city in southeast United States.  I can put down around $50k or less myself. I recently started practicing, this is my first time opening my own practice.  My credit is high 700's.  I don't have any debt outside of my student loans and I know banks have been very accommodating to doctors getting loans on the residential side.", "replies": [{"id": "d1p98z7", "text": "&gt;  larger multi unit commercial complex.\n\nWhat does this mean? How many square feet? What type of property? Will the other spaces be leased out already with tenants?\n\n&gt; Property is within 10mins of a major city in southeast United States. \n\nI don't know what properties trade per square foot in your area, do you know?\n\n&gt; I can put down around $50k or less myself.\n\nDoes this include money to build out your office? Dental equipment?\n\n&gt;  I recently started practicing, this is my first time opening my own practice.\n\nHow many years have you been working? \n\nSide note: This isn't very attractive to a bank that you don't have a practice up and running. You're talking about purchasing a whole complex and they might not even give you a loan to rent and build out 1 unit.\n\n&gt; I don't have any debt outside of my student loans and I know banks have been very accommodating to doctors getting loans on the residential side.\n\nHow much student loan debt? This is not a residential loan. This is a commercial loan to a currently non-existent business. The owner of the new business can't put down a lot of money either and has student loan debt.", "replies": [{"id": "d1p9dhs", "text": "Sounds like you're telling me what I wanna do isn't feasible.  I don't have a specific property in mind to tell u square footage or current leasing situation. Been practicing around 3 years.  That money down is my personal liquid capital.  I've already confirmed bank will loan me up to $1m to start my practice. approx $300k student loan debt.", "replies": [{"id": "d1p9iu2", "text": "I am not saying it isn't feasible. I am saying you don't seem to know enough about the market to make a decision such as this.  Do you feel comfortable starting a practice with that much debt and only 3 years of experience? Do you have enough clients? What do you know about managing property (since you will be a landlord to other tenants)? \n\n&gt; I've already confirmed bank will loan me up to $1m to start my practice.\n\nDo you mean a loan for $1,000 or $1,000,000? \n(1 M is 1000 and 2 Ms are 1,000,000).\n\nI would be curious to read the terms of this loan or what this means. Is this a line of credit with limits on draws? Is this for building out an office while renting a property? ", "replies": [{"id": "d1pcva0", "text": "So your advice is talk to a banker?", "replies": [{"id": "d1pe9di", "text": "I think you need to go more macro. I would learn about the real estate market, being a landlord, running a practice and building it out. Once you understand those things, I would then see what you can afford.", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "d1ose6g", "text": "How strong is your dental practice? You can potentially finance 90% of the purchase if your business could support the loan. ", "replies": [{"id": "d1ownkw", "text": "not strong, newer dentist.", "replies": [], "depth": 2}], "depth": 1}, {"id": "d1p7w3i", "text": "My best advice would be to go sit down with a banker and stop getting advice off of Reddit.", "replies": [{"id": "d1pbltw", "text": "Also, find a commercial agent in your area that focuses on the type of building you are looking for. They will be able to get you many numbers on the area ours interested in. ", "replies": [{"id": "d1pcvo8", "text": "Yeah as a commercial broker I'm pretty flabbergasted by the number of people who don't use brokers for transactions. It's great for me when I'm the listing agent, but in general I wouldn't recommend it. ", "replies": [{"id": "d1pfezq", "text": "Commercial is a big ball that you need to be trained to handle. As a residential agent, I would caution trying to do something commercial without an agent on my side. \n\nThere are a lot more factors in commercial than in residential. You have demographics, employment, population, growth, etc. that you need to consider. Unless you're willing to put in a lot of time learning how to find it, read it, and use it, you're better off using an agent. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]