Web Resources

A large part of success in commercial real estate is being creative in your ventures. This also includes how you purchase property. The more options you have to purchase property the better. After all, every property and every owner are different, and each seller will settle for different terms.Some purchasing strategies that you might explore are borrowing against the property through a loan, using a private lender's money, using your personal money, joining a joint venture, or using seller financing. Seller financing is a widely used form of purchasing a property, and is also known as subordination. It can be a great option for a property that you might need a little help purchasing; the owner may be open to the idea of seller financing.

Subordination occurs when the seller agrees to take back a second mortgage for a certain amount, often the remaining amount of the purchase price, after there has been paid a substantial down payment to the seller, and the new owner has already taken out a first mortgage on the property. In some cases, when a seller is extremely motivated, he or she may be willing to take back a second mortgage for far more than the remaining amount of the purchase price, even with no money down! With some properties, it can take a few years to develop, build and lease out a property, and actually see a substantial profit. This profit may come from refinancing the property when it has greatly increased in value