er.) But the good news is that you save time and money because the financial institution already knows the property. The other nice thing here, especially if this is a longer-term loan (Many investors believe changing asset classes into commercial property represent a good alternative for repositioning a real estate portfolio. There are many ways to think about how to purchase commercial investment property. We look at a few of the more interesting strategies we have seen.

The first way to think about how to purchase commercial investment property is to assume a loan already in place on the property. Obviously, the benefit of this strategy is the less cash you use to get into a transaction, the more cash is available for property upkeep and turnaround. (Keep in mind that with an assumption you will likely pay 1 point (1 percent of the loan value) to assume the loan and your finances must be approved by the lender.) But the good news is that you save time and money because the financial institution already knows the property. The other nice thing here, especially if this is a longer-term loan (1

urchase commercial investment property. We look at a few of the more interesting strategies we have seen.

The first way to think about how to purchase commercial investment property is to assume a loan already in place on the property. Obviously, the benefit of this strategy is the less cash you use to get into a transaction, the more cash is available for property upkeep and turnaround. (Keep in mind that with an assumption you will likely pay 1 point (1 percent of the loan value) to assume the loan and your finances must be approved by the lender.) But the good news is that you save time and money because the financial institution already knows the property. The other nice thing here, especially if this is a longer-term loan (

ty is to assume a loan already in place on the property. Obviously, the benefit of this strategy is the less cash you use to get into a transaction, the more cash is available for property upkeep and turnaround. (Keep in mind that with an assumption you will likely pay 1 point (1 percent of the loan value) to assume the loan and your finances must be approved by the lender.) But the good news is that you save time and money because the financial institution already knows the property. The other nice thing here, especially if this is a longer-term loan (y upkeep and turnaround. (Keep in mind that with an assumption you will likely pay 1 point (1 percent of the loan value) to assume the loan and your finances must be approved by the lender.) But the good news is that you save time and money because the financial institution already knows the property. The other nice thing here, especially if this is a longer-term loan (er.) But the good news is that you save time and money because the financial institution already knows the property. The other nice thing here, especially if this is a longer-term loan (10 years or more), is that you are not starting the amortization process from day one. Instead, because you pick up where the first owner left off, more of each monthly payment is devoted to principal rather than interest, so you build equity more quickly than with a new loan.

However, perhaps the lender won’t allow an assumption, or the seller owns the property free and clear. Then, a second way to think about how to purchase commercial investment property is “trust deed financing”. The seller can play banker and use a trust deed to create a transaction whereby the buyer makes a lower down payment and the seller sets more flexible terms. Again, the benefits here are lower transaction costs and the opportunity for the seller to re