First-time commercial real estate buyer looking for advice
Hey r/CommercialRealEstate!

(I initially asked this question over in r/realestate but then realized this sub existed. Sweet!)

My good friend is looking to buy a shop/apartment building for his woodworking business in NJ. It's in the $200k range.  
He's new to all of this, and I know a bit about residential real estate but not a lot about commercial - basically I'm trying to give him good advice and have his back so he doesn't make any classic dumb mistakes. I've got some questions if you don't mind...

**Background1:** First bit of advice I've given him is that I'd want him to have his own agent and not use a dual agent as the listing-agent he viewed the property with suggested (obviously so she can earn the double commission, etc.) - I'm not saying this makes someone untrustworthy or that she'd do anything shady, I just want him to have his own person in his corner.

**Question1:** Am I being over-protective? Or should we find him his own agent?

**Question 1a:** If getting his own agent isn't a bad idea, how do we best do that? Google "commercial real estate agent (city / state)" and call a bunch of them?

**Background2**: His understanding is that without 30% down, he won't be able to get a commercial mortgage here in NJ, and thus SBA loans are his only option. Is he correct?

**Question 2:** If there are any other options I want to help him know that so he can explore them. Should he start learning about non-SBA options?

Thank you so much in advance! (edited to add some details that might be important for giving advice)
[{"id": "e8qwiz8", "text": "Yes, call CBRE or JLL or Cushman.  Doesn't matter, just get him someone from a large firm.  However, since this is such a low purchase amount, they'll be giving it to Ol' Joe who's been at this for a whole 3 months.  ", "replies": [{"id": "e8qx0la", "text": "Thanks for the response. Sounds good! Are those big \"firms\" basically in NJ? I'm sure he's happy to get the younger lower guy on totem pole given the purchase price etc - totally understandable. ", "replies": [{"id": "e8r94hb", "text": "C&amp;W has 21 offices in NY and 3 offices in NJ.", "replies": [{"id": "e8rbpwf", "text": "It doesn't have to be a larger firm, but it's less risky in general. Typically, especially at the larger firms a new agent will be overseen by an experienced broker so you'll be alright. Alternatively you can look up a local broker at CCIM.com or see if you can find a broker that sold a similar deal in the same area. Just talk to three or four before you decide and ask specifically if the deal size will create a lower priority for the broker. Keep in mind too that $200k is tiny, but representing a buy who's already identified the property they want saves a ton of time. It's a layup. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e8qwyf6", "text": "a broker is a free service to you, whether good or bad...id find out the top five brokerage firms, reach out to them and ask them if there is interest to represent you, and choose the one that seems like the best fit. ask for recent sales and how they can help you, and don't sign a representation agreement. hopefully you'll find someone that's very knowledgeable and well connected through your the real estate world...the right broker may even be able to find you off market deals ", "replies": [{"id": "e8qxxxd", "text": "thanks for your response!!!", "replies": [{"id": "e8r2cgd", "text": "my pleasure!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e8qxp8a", "text": "I'd call someone from CBRE, or Cush&amp;Wake, or Voit. I happen to work at Voit, and know a lot of people here. \n\nIf you really just want questions answered, call any broker, and most would be happy to answer questions. \n\nYou can call Brian Mulvaney at Voit at 858-922-3372 or 858-458-3372.", "replies": [{"id": "e8qxykg", "text": "Thanks for the response, much appreciated. I'm relaying this info to him.", "replies": [], "depth": 2}], "depth": 1}, {"id": "e8qy76h", "text": "If he's going to occupy the real estate with his business, he should be able to do much better than 30% down.  I've seen up to 90% down with certain banks.  You could get wildly different terms with owner occupied real estate depending on what programs each bank is running.  Ask around and go to local banks.  They generally have the best deals on stuff like this.  ", "replies": [{"id": "e8qywb0", "text": "thank you that's great to know!!!", "replies": [], "depth": 2}], "depth": 1}, {"id": "e8qzn8g", "text": "I underwrite commercial loans for several credit unions, including some NJ credit unions. You can absolutely do 80% ltv with a CU without doing SBA, though, every financial institution is different.  SBA has higher fees, but your friend maybe able to take out a working capital LOC also. I wouldn\u2019t rule that out until you find the best terms. ", "replies": [{"id": "e8qzudj", "text": "Thank you, that's great info!", "replies": [], "depth": 2}], "depth": 1}, {"id": "e8rca72", "text": "How long has he been in business? If this is a relatively new business it might make more sense to rent rather than tie up a significant amount of money in real estate.", "replies": [], "depth": 1}, {"id": "e9av32m", "text": "If he does not know anything about buying commercial property then Ideally yes he should find his own commercial real estate agent to help guide him through the process.\n\nHe should also find a good real estate attorney.", "replies": [], "depth": 1}]