lets say you want to buy a property for $600,000 but the bank will only finance $400,000. its not because the property is not worth that much but because the bank cant get accurate comps...for whatever reasons but that's not the question. I am asking because I should be able to subdivide the land.
the question is:
is there a way to get a loan from the bank for 400K and seller finance the 200k left over?
Real Estate Investor · Unadilla NY · Member since 2017 · 418 posts · 297 votes
5y
Not that I know of. The bank will only loan up to a percentage of the maximum value of the asset. If an appraisal is run two ways ie income vs comparables in my experience they will take the lesser of the two as the valuation.