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Creative Real Estate Financing

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Brent P.
  • Banker
  • Chicago, IL
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No money down option for Apartment building?

Brent P.
  • Banker
  • Chicago, IL
Posted Feb 1 2011, 06:25

I am just trying to figure out if a strategy like this COULD work.

It seems that the requirements for down payment on a commercial, multi-family is typically between 25-30%.

I do understand that seller carry back loans are no longer permitted, but what about a 25-30% ownership in the LLC that I use to purchase the building? My thought would be to obtain transactional funding for that amount, have the seller cover it after closing, and agree on repayment for his x% interest in the LLC.

Now I'm sure that this has red flags all over it, but is anything like this feasible?

Thanks

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