Seller financing understanding.
Good morning BP community. My question today is on using partial seller financing and a private lender, I would like to know if this general example would work . (Not real numbers)
So I recently found a deal for a cashflowing apartment for 100k. The seller owns the property free and clear. Seller is willing to seller finance for 20% down which will be 20k. Now all the numbers workout and is a good deal but I dont have 20k laying around. So what I plan to do is get a loan from a private money lender for 20k. Now once I have the loan from the private lender I open up a 1st mortage using the 20k, then I open up a 2nd mortage for 80K using seller financing and close on the deal. Of course I know that the cashflow has to be able to pay both. What I am asking is if this structure can work. What are your thoughts.