Commercial Property For A Non Profit
I am the President and CEO of a small, struggling Non-Profit that works with children who have special needs. We operate out of a clinic in Los Angeles. With finances tight we have several close calls on making our monthly rent. It has been these close calls that has caused me to think about a different real estate strategy. My wife and I have considered purchasing a commercial property with the intention of renting it to the Non Profit. This would allow us to be the lenient landlords the agency needs, while possibly having a garunteed tenant and the hopes of gaining some equity in the property over the years. As I have explored the idea I am being told that all commercial loans require 20% down, that would unfortunately disqualify from having the capitol to make this work. Does anyone have any suggestions on how to make this work, or if that 20% rule always applies?
Thanks.
You should post this in the commercial property forum, you will get better responses than just mine.
As far as your 20% rule, not likely. I would suggest getting a book off the site regarding creative financing as a primer. But most of the people here that have bought and sold property have done so with no cash or nowhere near that 20%.
First thing to do is to pull your credit and start cleaning it up, ASAP. Then once you have a respectable credit score start looking for rehab properties that your kids and there friends can help put into shape. (Its good publicity as well for a fund raiser or city grant funds)
Dont forget that there are several investors out there that could benefit on there taxes by helping a non profit, and you should show them how they can actually make more money by paying less dealing with you. Hit the books on non profit financing, you will be shocked at how much is available to you for financing, and once you have possession.
Good Luck,
Kyle