Creative Commercial Real Estate Financing - Posted by Ryan

Posted by Ronald * Starr(in No CA) on December 18, 2001 at 16:01:01:


I wonder if you may be attempting to move up too fast to a project of this size. I think it is great that you are ambitious. But, in my view, there are two main errors in real estate investing: doing little or nothing and thus failing AND attempting to take on too much or too big a project.

It sounds to me as though you may be attempting to make the latter error. Excuse me if I misread your experience. The problem is one of frustration. You have a goal which you can not reach because you do not have what it takes to get there. Not only money, but experience with the people who could work with you to make it happen. I think sometimes people overemphasize the importance of having a “team” for investing in single family or small multifamily rental properties. However, for the size of project that you are discussing, I think the “team” is important. You probably should start off with a much smaller project and learn what is needed to complete it successfully. Then work up to larger projects and maybe, as a third or fouth step, a project of the size that you mention here.

Good InvestingRon Starr

Creative Commercial Real Estate Financing - Posted by Ryan

Posted by Ryan on December 18, 2001 at 11:09:26:

I’m interested in buying a parcel of land that is zoned for a commercial, hotel, and/or retail center. It is in a prime location in a growing city in California, but it comes with a hefty price tag of $12 million. I’m trying to find out if it is possible for a small, startup business to obtain a loan for at least that much if not more for commercial real estate. Initially, I wanted to buy the land, develop a shopping center on it, and then manage it. On top of all that, I’ll probably need some extra funding to cover the costs of erecting buildings, obtaining licensing and permits, and paving the parking lot areas. I’m sure that it’s probably hard to obtain a loan of that proportion let alone raise the proceeds on my own. However, I am certain that there is an extremely tremendous growth and profit potential. Any suggestions that could help me to obtain the funding in purchasing the property? Thanks.