HELP - 3 single-tenant portfolio deal with cash credit at closing

[Scott W.]

Hello All-

I have the opportunity to purchase a 3-property portfolio all with a major chain store and triple-net leases.  The main leases expire in 10 years -- and then there is a 3 year rent holiday -- and then there are multiple 5 year options to renew.  This is a credit rated tenant and all 3 properties are in great locations.

The portfolio is being offered at a 7.75% CAP -- which is 1%-2% higher then normal CAP rates for the tenant -- so appraisal should be easy. The Seller is offering an additional credit off the sales price or credit at closing due to the 3 year rent holiday (comes out to $1.4M)

My question is -- I can buy the portfolio for $8M.  I want to put 20%-25% down ($1.6M-$2M) and have a bank finance the rest.  That part i'm not concerned with -- what i want to know is:

"How can the seller -- instead of discounting the price of the property by an additional $1.4M -- offer me the $1.4M in cash at time of closing"  So the bank is still only loaning 75%-80% of the appraised value... i still put up 20%-25% in cash... but i then get a big cash check at closing - or in a side escrow deal - which enhances my cash-on-cash return that much more.  I would take $X per year to set aside over the next 10 years to make sure there were required funds to pay the 3 years of debt payments during the rent holiday -- and would even put that $ in the lending bank's checking account so they had proof that money was being accrued."

Any help on how i could do this deal (ie: how can i get this cash back at closing legally of course) and what types of lenders i should be talking to that would be potentially interested in a deal like this?

Thanks in advance!!!!!