The more I learn about real estate, the more interesting the commercial side becomes. I joined Commercial Real Estate 101 because I want to expand my understanding beyond single family properties and learn how apartments, RV parks, and self storage fit into the bigger picture. I’m looking forward to learning how these deals are analyzed, how they are financed, and what it takes to get started without making the process more complicated than it needs to be. Excited to be here and learn from everyone in the community.

I had another member reach out and ask me about using credit cards as part of their “skin in the game” for a real estate deal. Instead of replying privately, I figured I’d post it here in case anyone else has been wondering the same thing. Can you use credit cards to help fund a real estate deal? The answer is… yes. Some investors do. One strategy is to call your credit card company and ask if they’ll lower your interest rate or offer a promotional rate. Some people also use balance transfer offers to reduce the cost of borrowing. The idea isn’t usually to buy the property with a credit card. Instead, some investors use that available credit for things like: - Earnest Money Deposits (EMD) - Due diligence costs - Closing costs - Part of their down payment or “skin in the game” - Small repairs or getting the property up and running At the end of the day, a credit card is just another financing tool. Like any tool, it can help you… or hurt you… depending on how you use it. A few things to think about: - Promotional rates don’t last forever, so make sure you have a plan before they expire. - Regular credit card interest can get expensive fast. - Not every lender is okay with borrowed money being used as your equity. Some are, some aren’t. Always ask before assuming. - Just because you can borrow the money doesn’t automatically mean it’s a good deal. One thing I’m learning is that good investors don’t just ask, “How do I get the money?” They ask, “What’s the smartest and least expensive way to put this deal together?” There are a lot of ways to fund a deal—seller financing, assumable loans, private money, business lines of credit, partnerships, and yes… sometimes even credit cards. The important part is knowing when each tool makes sense. I’m still learning myself, so if you’ve actually used this strategy, I’d love to hear your experience. What worked? What would you do differently?

In the paid community "Commercial Deal Academy" there was a post about duplex, triplex, etc. How to evaluate properties such as these when they come up in your search. From an investment perspective, I would not evaluate a duplex, triplex, or fourplex like a single-family rental. There are really two different ways to look at these properties: For financing and appraisal - 1–4 units are residential. - Lenders often use residential loan programs. - Appraisers may rely heavily on comparable sales (especially for duplexes and fourplexes). For investing Treat them like small multifamily assets because their value to you comes from the income they produce, not just what similar properties sold for. For example: - Single-family home - Purchase: $300,000 - Rent: $2,000/month - You care about neighborhood appreciation, resale value, school district, and comparable sales. - Fourplex - Purchase: $600,000 - Rent: $6,000/month - You care about occupancy, operating expenses, NOI, cash flow, DSCR, and return on investment. The fact that a fourplex is legally “residential” doesn’t change how an investor should analyze it. Scott's approach, because it's the broker in me..... I use both methods: 1. Check comparable sales to avoid overpaying relative to the market. 2. Underwrite the income to determine whether it actually meets my investment criteria. If the numbers don’t work, I don’t buy it—even if the price is below comparable sales. Conversely, a property that’s priced above nearby comps might still be attractive if it has exceptional income or can be improved to increase its income. For someone building a rental portfolio, the income analysis should drive the decision, while comparable sales serve as a reality check on the purchase price. That’s the mindset that also prepares you for larger multifamily and commercial acquisitions. ...this took forever to write...I'm done...I think the GIF is stupid funny......who is with me....made you look

I recently came across an off-market 15-unit multifamily opportunity close to Ann Arbor, MI and would appreciate the community’s thoughts. Here’s what I know so far: - 15 units - Preliminary Underwriting (My Assumptions) - Estimated NOI: ~$79,943 - Estimated Cap Rate at Asking Price: 9.41% - Estimated Value: ~$999,000 using an 8% cap rate - Assumptions: - $850 average monthly rent - 5% vacancy - 45% expense ratio  Here’s where I’d appreciate some guidance. The broker had me sign an NDA, but the seller is insisting on receiving an LOI before releasing the rent roll, T-12, unit mix, occupancy information, and details on deferred maintenance or CapEx. I understand every seller has their own process, but I’m curious how those of you with more experience would handle this. - Would you submit an LOI based on limited information? - How would you structure the LOI to protect yourself? - What contingencies would you include? - Have you run into this before? If the deal continues to make sense, I’d like to pursue it. I’m flexible on how it’s structured—whether that’s an assignment, buyer representation, or another approach that makes sense for everyone involved. One of the reasons I joined this community was to connect with people who enjoy putting commercial deals together. If this is something you’d like to discuss or potentially work on together, I’d love to connect. Thanks in advance for your thoughts! — Scott

This looks solid. Evaluated under 60 seconds. Thank you @Tamala Jones Great Job Cap Rate Check $397,615 ÷ $2,990,000 = 13.3% ✅ (matches OM) Revenue (from OM) ≈ $903,287 Margin $397K ÷ $903K ≈ 44% margin (solid for economy hotel) DSCR + Yield (THIS IS THE PLAY) Assume conservative debt: Loan = $717,600 Debt service ≈ $60,000/year (safe estimate) ⸻ DSCR $397,615 ÷ $60,000 = 6.6 DSCR 👉 This is VERY strong (lenders love anything over 1.25) ⸻ Yield on Recorded Price $397,615 ÷ $1,345,500 = 29.5% yield 👉 This is where you win — not the cap rate, the yield on structure