Seller Financing options on a 4.5 million dollar multifamily deal

[Stephen Jones]

BP,

I have a 4.5 million dollar multifamily deal on the table in which I'm trying to do everything I can not to lose. I have a great relationship with my lender and on this particular deal I would only need to come with 15% down (675K). I only have about 300K to invest in this deal, so therefore I am short the 375. What are my options? I know the sellers are trying to avoid paying capital gains. Would a seller finance deal be beneficial to them? If so, can anyone give me any options? I've never done a seller finance deal so I'm a little in the dark on how to present one. 

I've also considered partnering, but I literally have no one close to me that has any capital. I understand this is fairly brief so if there are any questions, feel free to let me know. Thank you all for your help!

[Chase Busick]

@Stephen Jones congrats on finding the deal & hopefully you are able to keep it or work it all out!

You should definitely look more into seller financing that way you can propose options to them, maybe that way you can have them cover the rest for a certain amount of time. There’s a few options you can go about it which may be the best & could potentially offer them good terms/deal on carrying some of the remainder of the down payment/costs. It’d almost be a50/50 since you got the bank, then can also offer them payments/interest for a period of time if you were to work it out with them (which won’t be as bad as a complete seller finance deal, especially if they’re looking to reuse that $ for a new deal) as long as they’re open to it..?

It is quite a bit of money for the remaining amount of the down payment, but you can definitely find a lot of different ways to cover it, whether it’s personally, or bringing on private money lenders from people/investors you potentially know? Or hard money lenders which will definitely be the most expensive/costly depending on terms. Maybe bring on a limited partner or jv? 

There’s a lot more potential creative ways you could finance it as well.