How to Buy Commercial Real Estate with Little Money Down in 2025

If you’re like most people, I imagine you’re wondering how to buy commercial real estate with little money down.

It is no secret, commercial real estate has historically been one of the leading classes of property to build generational wealth from. However, most new investors believe you need to have a lot of money to get started, which is not the case. Commercial properties can be bought with either little or even no down in 2025 thanks to creative financing options and partnerships.

This guide will teach you how to break into commercial real estate investing without a huge upfront investment, regardless of the type of property you want to invest in: office buildings, multifamily units, retail centers, industrial spaces, and everything in between.

Facts Behind Commercial Real Estate Investment

Commercial properties are not like residential properties in the way that they offer:

Higher Income Potential: Strong cash flow comes through its multiple tenants and business leases.
Longer Lease Terms: The leases are usually commercial, lasting anywhere between 5–10 years and therefore have largely eliminated the risk of vacancies.
Professional Tenants: Individual renters tend to take care of properties less than businesses tend to.
Appreciation + Depreciation Benefits: You have both powerful tax write-offs and long-term value growth.

How to Buy Commercial Property with Little Money Down

Seller Financing (Owner Carryback)

The seller becomes the bank, and pays off the deal out of their own pocket.
You can negotiate down payments, sometimes as low as 10%.
No tight credit checks or lender approval.
It is great for off-market deals or motivated sellers.

Partner with Capital Investors

They have the money, you get the deal.
Get investors that want passive returns.
Joint ventures or LLCs are used to structure deals.
In return for their cash injection, offer equity.

Use SBA 504 or 7(a) Loans (USA Only)

AllRays is backed by the U.S. Small Business Administration.
Takes as little as 10% down on owner-occupied properties.
Great if you are looking to buy office space, a retail location, or can think of more practical uses for a warehouse.
Competitive rates lower than the Fed Funds rate and lengthened repayment terms.

Lease with Option to Buy

Also referred to as commercial real estate ‘rent-to-own’.
Purchase having control on a property later.
Down payment can also be offset by a portion of your lease payments.
It also gives you time to build capital or secure financing.

Use Hard Money or Private Lenders

Short-term, high interest rate loan based on asset value and not credit.
Fast approvals, flexible terms.
Useful to reduce time for distressed or time-sensitive deals.
Stabilize property and refinance into long-term financing.

Existing Loan or Loan Assumption

The buyer takes over the seller’s current mortgage using a new lender.
You do not need to qualify for a new loan.
Lower interest rates than current market terms may come with it.
Typically used in multifamily and retail deals.

Real Estate Syndication Platforms

Purchase fractional ownership of a bigger commercial deal.
Platforms like CrowdStreet or RealtyMogul, for example, allow you to start with as little as $1,000.
No property management required.
Perfect for passive investors with limited capital.

Use Equity from Another Property

If you also own other real estate, tap equity with HELOC or cash-out refi.
Use them as your commercial down payment.
It leverages your existing portfolio without you having to sell assets.

Mistakes to Avoid

Overleveraging with no exit plan
Neglecting diligence into tenants, leases, and zoning
Not understanding cap rates and NOI (net operating income)
No property manager or leasing strategy in place

FAQs

Can I really get involved in commercial real estate with no money down?

Yes, you can do it. You don’t use your own capital—you do it through seller financing, partnerships, or syndications.

Better than residential?

It depends on your goals. On the other hand, the commercial returns are higher, but require greater scrutiny and management.

What must your credit score be to get an SBA loan?

The majority of lenders expect 650+ (and many won’t lend below that), but if you have strong financials and a strong business history this can get you there.

Can rental income be used to qualify?

Yes, especially if the leases are long term, and tenants are of a stable calibre.

Is there a grant for first-time commercial real estate buyers?

Some local programs or development authorities lend a hand, but they are unusual.

How to Buy Commercial Real Estate with Little Money Down