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jaybirdd
07-28-2016, 01:53 PM
For someone currently not working, how much capital do you think I need to purchase a commercial property such as a motel, where I can leverage my money with a bank and put 20% down, so I can earn at least 40k a year after mortgage payments and have the property to sell when I am ready to retire?

Fulcrum
07-28-2016, 05:29 PM
My normal response to this question is: If you have to ask, you don't have enough. I don't think that applies here. Let me ask you the following:

How much experience do you have managing commercial properties?
Given the wide range in values of commercial properties, what's your top end limit?
Have you spent time learning how to value commercial properties?
Are you looking for A, B, C, or D type of properties?
Do you have any source of provable secondary income aside from your savings?

Harold Mansfield
07-28-2016, 05:38 PM
For someone currently not working, how much capital do you think I need to purchase a commercial property such as a motel, where I can leverage my money with a bank and put 20% down, so I can earn at least 40k a year after mortgage payments and have the property to sell when I am ready to retire?

None of this sounds right to me.

How do you get a loan when you aren't working and have no income?
Are you borrowing the 20% to buy the property?
Or are you asking how much you need to buy a fictitious property?

There's no way to know if you can make $40k a year after mortgage without a property, a mortgage, and a plan to rent it out and to whom and for how much.

Too many unanswered questions.

If you at least had an estimate of what space goes from in the area you're thinking about buying, and ball park figure or what a property of that size costs, at least then someone could do some quick math and say you need (for instance) a 10k square e foot property costs this much, and you have to rent it out continuously for 20 years at this rate to both generate an additional $40K a year (after expenses, taxes, maintenance, insurance and so on), and payoff the mortgage

If it sounds to the bank the way it sounds to me, I wouldn't be interested. If they want to be in real estate business why do they need you? You're not even bringing experience, collateral, or an income to the table as a fail safe.

JMO of course.

if there is more information that will help us help you, please don't hold back. We can't guess with such little information to go on.