Posted by Mark (SDCA) on September 08, 2000 at 16:44:29:
Yes… he is pretty much right. 25% down is about average for commercial property. 1-4 units is considered residential and 5+ is commercial. The good news is that if it is 2 triplexes on separate lots you simply buy them as 2 triplexes. I did this with 16 units (four 4-plexes).
Regards,
Mark
25% Down on Commercial Property??? - Posted by Metra
Posted by Metra on September 07, 2000 at 13:12:57:
I have yet to purchase property but I’m still working very hard at it.
I’m in contact with a seller of a property listed as 6 units in a Los Angeles. After speaking with this person I learned that the property actually consists of two triplexes on joining lots. He’s a flexible seller who needs to relocate to Texas ASAP. Now, he told me that any property that is 5 units or larger is considered commercial real estate and commands a minimum 25% down payment. At that price I’m looking at $75,000.00 down ($300,000.00 asking price). Firstly, 25% down for commercial property is news to me, as is the idea that 5+ units are considered commercial property. Can anyone with knowledge of California real esatate confirm this? Also, is it possible for me to go after this property as two seperate properties, thereby circumventing the commercial property law if there is, in fact, such a thing?
Thanks, again, in advance. You guys are great.