2nd Lien Position Commercial Financing

[Bodie Jones]

In an effort to scale up quickly, I am in search of secondary financing for commercial multifamily property.  My focus has been small multifamily investing but I'd like to leap into large multifamily purchases of properties at 5-20 units.  I'd love to learn more from someone who's structured this at purchase.  Is anyone aware of lenders that do a 2nd lien position at purchase?  Are there specific things I need to keep in mind when asking the seller to carry back a 2nd mortgage?

[Jill F.]

I've never had a bank take a 2nd, but we have done several commercially financed deals where the bank loaned 75% with a first and the seller carried some portion of the remaining 25% with a second.