My colleague and I need some advice. We have came a crossed a 24 unit complex (split up into 9 one bedroom and 15 two bedroom units). The asking price is in the low $800,000's and the owners have agreed to 50% seller financing. Can anyone recommend any private lenders in the Missouri area that would be interested in funding the remaining 50%? Any advice would be greatly appreciated.
Any smart lender would want the sellers 50% debt subordinated to theirs.
If you are trying no money down you do not have skin in the game. When the going gets tough they usually get gone and walk away when they have nothing in it themselves to lose.
So the lender will want the first position 50% and have the seller owner financing in first loss position.
I do not see a private lender coming in at the 50% in second position. If they do it would almost be hard money rates. Why not syndicate the deal?
@Nathan Alton as Joel says that's not going to happen most seller financing is a pipe dream for most investors .. If you have 50% of purchase price in cash you are in business if you don't your wasting your time.
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