This is my first multifamily deal. I am getting 75% loan to value from a local bank for a 16 unit multifamily deal of $2 million. The seller is willing to finance an additional 15% (considering he will be second on the mortgage after the bank).
I want to know how the whole legal aspect of it works of "how the bank would go first " and the "seller second" in the mortgage. Also, would it eventually be possible to go on a deal with no money down if seller decides to finance the other 25% of the mortgage, for example :
Step by step :
1- I give 25% down payment
2-bank gives me 75% loan to value
3- after closing I make a contract in which the seller finances me the other 25% and as a consequence I get the 25% back.
I would like your feedback regarding this matter.