I'm trying to figure out how to minimize the down payment on this CRE MF acquisition. The seller has agreed to 75% seller financing and terms I like.
I contacted just one HML so far and was told I would need to have a dp to cover most of the leftover purchase price (they said they could lend up to 65% on this project).
I figured I could just have them cover the 25% dp and refinance in the first 6 months. Are there HML for CRE open to covering this 20-25% down payment?
open to any other creative ways to structure this!
I'm trying to figure out how to minimize the down payment on this CRE MF acquisition. The seller has agreed to 75% seller financing and terms I like.
I contacted just one HML so far and was told I would need to have a dp to cover most of the leftover purchase price (they said they could lend up to 65% on this project).
I figured I could just have them cover the 25% dp and refinance in the first 6 months. Are there HML for CRE open to covering this 20-25% down payment?
open to any other creative ways to structure this!
Hello Zac, congratulations on your upcoming purchase. You may get lucky and find a lender that will do that but would be hard pressed to find someone that offers 100% financing. Almost all lenders I know, including myself, would not lend to a 1st time investor with no skin in the game.
That being said, you stated that the seller is financing 75%. Simple numbers example of a purchase of $1,000,000 would mean they are financing $750,000 and you would only need $250,000. Maybe I am misunderstanding but, do you have any skin in the game so far?