New investor looking to get some information about starting in commercial real estate.
I hope this post isn’t in violation of any rules. I am looking to get started in commercial real estate investing. I have opened an llc., funds will be deposited next week. (250k). I would like to focus on retail and office spaces in Chicago and the surrounding suburbs. My main question is in relation to lending. I will not be occupying the space with my own business. I would like to get into a slightly distressed property, built or repair it and then lease it. In this situation, where should I begin with regard to financing? Is this similar to home mortgages in terms of getting a pre approval and so forth? Any info would be greatly appreciated. Any resources (books, podcasts, etc) would also be appreciated. Any tips for someone starting out? Thank you for taking the time!! 

* initially formed llc and funded business checking account while looking at a property that I would have been able to buy without funding. Still in talks with the owners.
[{"id": "hy1loi4", "text": "Unlike a personal home mortgage, lending is primarily based on the financials or \"business case\" for the property, and your finances as guarantor are secondary. Typically the debt cannot exceed your net worth. You will probably need at least 30% down. The property will need to cash flow as-is to support the debt payment, with value-add (filling some vacancy) being upside. Unlikely that anyone will lend to you for a property that is mostly or fully vacant. \n\nIn the Chicago area you need to carefully evaluate the tax burden, particularly in Cook County. It is among the highest in the nation and getting worse every year. For example I bought a vacant warehouse there that only cost $450k but annual taxes were $120k. Positive, it suppresses prices, negative, it can be scary cash burn if you struggle to find a tenant. So, even if a property is partially occupied, consider the remaining lease terms and your risk of ending up with negative cash-flow on the property. \n\nIf you find a slightly distressed property that you like, run it by a local bank (local, not national) to see if they would be interested in financing. Eventually you'll find a local banker that will pay attention to you (its inexplicable how often they don't even with experience and larger deals) and you can start to figure out what they will or won't finance.\n\nFWIW $250k is a small amount to enter commercial in my opinion but that's not to say it is impossible.", "replies": [{"id": "hy3bc19", "text": "Sheesh, those taxes. I hope you appealed them because it sounds like you were significantly over assessed, unless this was in Chicago Heights or some other depressed suburb", "replies": [{"id": "hy3ibiy", "text": "Nice username. It was one of those suburbs close to Indiana, and that was on vacancy if I recall correctly. I think taxes were around $3/ft? I was using C&amp;N to appeal.  Great building and location on the interstate, just so much tax/vacancy risk. I didn't see the fiscal situation improving so I sold while I had a tenant.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hyagjk2", "text": "I'm a commercial real estate direct lender out of Los Angeles, I help a lot of first time real estate investors and take my time to break down all the lending options and pros and cons. Feel free to shoot me a message.", "replies": [], "depth": 1}, {"id": "hyur0kw", "text": "Sending you a PM of some reading material that may be helpful.  Enjoy!", "replies": [], "depth": 1}]