Seller 2nd Mortgage as part of down payment?

[Scott W.]

Hi All-

Does anyone have any experience (or worked with any lenders) where the Seller takes on a 2nd mortgage as part of the down payment amount?  For example, buying a $4M property that normally requires 25% ($1M) down and the other 75% ($3M) as a first mortgage -- are there lenders that will allow for a $3M first mortgage, a $500K cash down payment and a Seller carried 2nd mortgage of the other $500K.  The Buyer still has skin-in-the-game and the 1st mortgage holder is still in first position with the same risk that they normally would have on the property.

Any help would be greatly appreciated...

Thanks...

[Douglas Skipworth]

Hi, @Scott W.

I have personally done several deals where the bank does the first mortgage and the seller carries the second mortgage and I put nothing down. 

I agree with @Derek Carroll.  It all comes down to your experience and your relationships.  

But, there's no doubt that it's 100% doable.

Best of luck to you!