How large of a down payment is required for a commercial real estate purchase?

The amount of the down payment for a commercial real estate purchase in California will vary depending on the purchase price, the type of property, and other factors. Generally, a down payment of 20-30% of the purchase price will be required. For example, if the purchase price of the property is $500,000, the down payment would be between $100,000 and $150,000. In some cases, the down payment requirement may be higher for certain types of property. For example, multi-family properties or those located in high-demand areas may require a down payment of up to 40%. Additionally, some lenders may require a larger down payment if the borrower has a low credit score or other mitigating factors. In most cases, lenders will require the down payment to be paid in full at the time of closing. This means the buyer should be prepared to make the down payment before the closing date. In some cases, the lender may be willing to provide financing for the down payment, which would allow the buyer to make payments over time. Ultimately, the size of the down payment for a commercial real estate purchase in California will depend on the purchase price and other factors. If the buyer has a high credit score and a large down payment, they may qualify for more favorable terms. As such, it is important to consult a financial advisor in order to determine the best approach for the purchase.

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How large of a down payment is required for a commercial real estate purchase?

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