Is there anyway I can finance 350k with a 40k salary?
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[{"id": "g833boq", "text": "Not unless you can earn about 100k more per year.", "replies": [], "depth": 1}, {"id": "g8345pm", "text": "at least 25% down for financing commercial i believe. even then, your salary just isn\u2019t enough to cover miscellaneous expenses if something goes wrong... not a good idea. start with multi family homes or SFH", "replies": [], "depth": 1}, {"id": "g8351ix", "text": "Most definitely not.", "replies": [], "depth": 1}, {"id": "g8365k7", "text": "Will owner hold the note?", "replies": [], "depth": 1}, {"id": "g8378i3", "text": "ofcourse it's possible. get creative and take extreme risk.", "replies": [], "depth": 1}, {"id": "g83a73s", "text": "Save up 100k .\n\nWork harder save more.  No shortcuts unless you have rich friends.", "replies": [], "depth": 1}, {"id": "g83ekpe", "text": "Find a partner.  Let them in on the deal.  Some is better than none in your scenario. \nYou don't mention reserves.  The bank will want to see them and its good for you to have them.  \nGood luck.", "replies": [], "depth": 1}, {"id": "g83m4fc", "text": "&gt;My dream building that I\u2019ve wanted for own for years has come on the market.\n\nOver time, you will see lots of opportunities.   Trust that more will come along, probably even more ideal.\n\nLet this be motivation to work yourself into a position to comfortably afford great deals that fit your plan in the future.\n\nLast, it would be such a struggle and fraught with round-the-clock risk that you'd grow to despise the 'dream.'   'Preparation meets opportunity' is the intersection you should hold out for; have the discipline to make a smart move rather than a rash one.", "replies": [], "depth": 1}, {"id": "g83mok5", "text": "Possible, sure. By yourself, no. You\u2019ll need partners and raise equity. What are your plans with the buildings?", "replies": [{"id": "g83o1m8", "text": "Youll be on the hook for roughly $2500 month plus or minus. Can you cover that plus some other expenses with rental income this property can generate?", "replies": [], "depth": 2}, {"id": "g84mrk4", "text": "Ideally start a music venue/ art gallery.", "replies": [{"id": "g84z1y0", "text": "During a pandemic.", "replies": [{"id": "g865h5b", "text": "I\u2019m aware that now isn\u2019t the best time to open this sort of business but that\u2019s my goal down the road", "replies": [{"id": "g87dqow", "text": "Right, in the meantime, you'd have a huge payment on a building you don't need and that is producing only negative yield -- not just the mortgage, but outlays for insurance, property taxes, ongoing maintenance.\n\nIt sounds like you don't have a business plan.   The good news is, you have lots of time while you fix your finances to work out a detailed business plan that requires a building such as this.\n\nYou may find that the business plan you have in mind does not support the cost of a building this costly or even generate profit generally.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g83phqe", "text": "Not alone pal.", "replies": [], "depth": 1}, {"id": "g83qgd7", "text": "Yep, build a time machine and go back to 2005", "replies": [{"id": "g84mtb4", "text": "If only.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g83tlji", "text": "You'll need investors and/or a partner who can help you with balance sheet and credit enhancement. That size of a loan will be recourse guarantees which is a barrier unless you can show the investor upside. I'd start with a business plan on how you will get the property to cash flow. If the plan involves restaurants, office or retail stores, I'd really think hard on how you'd make it work during the pandemic.\n\nProving out that the income from the property will support the expenses and the debt service will go a long way to help bring investors. If it is empty, expect a 30-40% down payment for a bridge loan, 3-5% closing costs and fees, interest reserves, and whatever your renovation budget will be.\n\nAlso, I believe some brokers (not all) will entertain bringing a creative, owner-financed offer to the seller if you can find a way to get them paid their commission. Many small deals like this get sold using some sort of owner financing. Contact the broker and ask if the seller is in the position to owner finance. If so, structure an offer where the seller holds the note for a year or two while you execute your plan and prepare it for refinancing to pay them off. You can even offer a price over asking if they'll give you terms. You'll still need cash for the down payment, transaction costs, and renovations, but you won't have to go to a bank. -- The flip side is that some local banks will allow an owner-carry second lien behind their senior lien, as long as the borrower has some cash skin in the game. \n\nIn this environment, small commercial buildings may have difficulty selling unless the land is smack in the path of progress for some other use, like your condos. Even then, the barriers to development right now may force the property to sit on the market for a while. Something to research if you are looking to negotiate and need to find some leverage for an owner-financing deal.", "replies": [], "depth": 1}, {"id": "g83w3xf", "text": "Purchase price + closing costs + insurance + improvements/repairs ++++++\n\n&amp;#x200B;\n\nIt's not just $350K", "replies": [], "depth": 1}, {"id": "g8414ks", "text": "Get at least 10% downpayment for a commercial loan.", "replies": [], "depth": 1}, {"id": "g8449hl", "text": "2nd job", "replies": [], "depth": 1}, {"id": "g8494li", "text": "No. You need a partner. You'll need to put 25-40% down on the building, and you will likely be asked to personally guarantee the loan (meaning if the LLC holding the building collapses, you personally need to pay back the loan). If you have 20k in debt and no assets, I don't know how you'd guarantee it.", "replies": [], "depth": 1}, {"id": "g84kygz", "text": "Land contract time! Work out a deal with the owner not the bank", "replies": [], "depth": 1}, {"id": "g84oyk8", "text": "Find a partner or partners willing to go in on the deal with you, that\u2019s what comes to my mind if you truly want to try and get the property", "replies": [], "depth": 1}, {"id": "g84yy0q", "text": "Nope \nPay off debt and earn more or get married,\nMostly could maybe apply for 5k with credit card", "replies": [], "depth": 1}, {"id": "g853pl5", "text": "Is there someone you can partner in with?", "replies": [], "depth": 1}, {"id": "g85fhzv", "text": "These comments are all providing advice for the goal of ownership. You need to look at this from the perspective of an investor. How much cash flow will the building generate from rent and other income sources? This is a different question than how much money you will make from whatever business you open at the location. Your business will end up paying rent to cover the mortgage costs from purchasing the building. \n\nIn theory you could get a hard money loan to buy the building, but this isn\u2019t advised for you.", "replies": [], "depth": 1}]