Rental Property Investor · Meridian, ID · Member since 2017 · 6 posts · 2 votes
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?
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.
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.
Thanks for the feedback Jill! I am hoping to find private or hard money to do the 2nd as I feel like a bit of my negotiating power is taken away when I’m also asking the seller to take back the 2nd and possibly request changes to the sale price.
Hello James Kealey, I realized in my original question I didn't really explain myself thoroughly. If a bank is willing to do a 70% first lien position mortgage. I was wondering if a private or hard money lender would be willing to do a 15% second, then I would come in with the final 15% plus closing costs to round out the acquisition. We're you stating that after your 2nd lien position, the max CLTV was 70%? In other words, the purchaser was putting 30% down, the bank was roughly financing 60% and then you did roughly a 10% second?