No experience, but maybe you could partner with someone(s) who can help finance and/or rennovate?

 

That was my initial thought. Details, of course, would help here. Will his be a flip or something you will buy and hold? A partner will obviously eat away at some of your profit, but they will bring money to the table, minimize some of the risk, and hopefully bring some knowledge and experience with them. It's probably best to go about it yourself, but if you're a beginner at this, it may not be a bad idea to partner with someone more experienced and take a little less profit.

Btw, no experience here either.

 

Financing a foreclosure would work the same as financing any other purchase. Proceed as you normally would if the building was not in foreclosure. The main difference would be in time frame you have to work with. Another possibility you might investigate is a loan assumption. Most loans are not assumable but the bank that has the current mortgage may work with you instead of foreclosing. If you are getting a real good buy on this you could get an equity loan for repairs after the closing.

 

Also, lenders tend to treat commercial properties slightly different than with residential. With residential, they are more interested in YOUR credit, income, etc. With commercial properties, they are more keen on the property and CASHFLOW produced by it (although, your credit, income, etc. are still looked at).

 

The first step is to find a local commercial loan broker and/or some local banks that lend on these types of deals. The discussion will likely center around a bridge loan. Your job is to determine the potential and find a lender that agrees.

I have seen banks that will do 80-85% loans based on fixed up values.

Or:

Have you talked to the seller? Can you bail them out of foreclosure and perhaps do a wrap loan with them?

What are the circumstances surrounding this building? More information would be helpful.