Off market commercial deal financing

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I am an investor from north NJ, and recently purchased my first deal in NE PA (currently 3 units, soon to be 5). So far things have been going great and I am now looking to expand and scale.

I have a mutual friend who owns an apartment building with a strip mall next to it. This would be an off market deal and he said he is willing to owner finance if I can come up with a 20% down payment. The problem is I am low on cash from my first deal

Recently I have shifted my interest from residential to commercial, because I heard if the #'s make sense, then financing comes easier. I was wondering if anyone has heard of lenders giving loans for just the down payment? Or are my only options either a hard money loan or a JV with another investor?

20% of the purchase price is 800k, which would take me years to save up for. So before I have a serious meeting with him and really dive into the #'s, I want to know what options are available to come up with a down payment. Thank you all for reading!

JV with another investor is the path of least resistance. Even if you find another partner that brings most the equity, getting some of a deal is better than getting nothing. There are a bunch of bridge lenders that will do short term preferred equity investments as well.

If you get any other loan in addition to the seller carry, you'll have to make sure that the seller is willing to be in second lien position. Any serious lender will make being in first position a condition of the loan, even if the seller is still carrying most of the debt. That's going to be your biggest hurdle to overcome. You're better off finding a partner to come up with the rest of the 20% needed.