WHEN TO DO
CONVENTIONAL FINANCING VS. COMMERCIAL FINANCING

Conventional is best when…

  •   The Investor wants to do a Lease Option vs. a Contract for Deed.
  •   The Investor owns less than 10 financed properties.
  •   The Investor has ALL the funds for the full 20% down before getting the money from the Tenant Buyer. (You can NOT pool funds with a conventional loan).
  •   The property could be a good one for a long-term rental IF the TB flakes out.
  •   If you need to get the best cash flow (you’ll get a 30-year fixed with Conventional)

Commercial is best when…

  •   The Investors wants to do a CD (they should know and be “ok” upfront with what we’re doing and know the property will be sold same-day on a CD)
  •   The Investor owns more than 10 properties or can’t get regular financing
  •   The Investor NEEDS to combine their down payment with the TB’s to have the full 20% down.
  •   The Investor feels OK with having to redo in 2-5 years or you’re super confident the TB will perform.
  •  The property is a little rougher and needs some work.