Owner Financing

7 Replies

Hi,

I intend to purchase a multi-family commercial property in the next year or so. I will have some capitol but I would not be able to obtain conventional financing. With owner financing is it feasible to get up to 95% LTV??? For example I'm interested in an apartment building for sale at about $1.8million and have roughly 5% to put down. I'd appreciate some comments

the best I could get on a 32 unit deal was 70% bank, 20% seller, 10% me.

Originally posted by @Matthew Santillanes :

Hi,

I intend to purchase a multi-family commercial property in the next year or so. I will have some capitol but I would not be able to obtain conventional financing. With owner financing is it feasible to get up to 95% LTV??? For example I'm interested in an apartment building for sale at about $1.8million and have roughly 5% to put down. I'd appreciate some comments

 Matthew:

The amount of vendor carry is limited by the appetite of the vendor ... and how appealing of a case you can make to them.

@Matthew Santillanes , why not turn the 5% down into 20% and buy a smaller apartment to get yourself started?  

I live in a high cost area but can still find lots of great deals under 500K if I really look.

My .02 here.

@Matthew Santillanes  sure it's possible but you'll have to get a good pipeline of deal flow because you'll have to go through many more properties than if you buy it with traditional financing. 

Thanks everyone for their comments

I would say that the odds are slim to none. 

The lenders will want to see more of your money in the game.  The seller will likely want the same.  If you take control of the property and muck it all up, it will likely take the seller effort and money to get it back into shape.

I have seen deals like this but they were started with lease options.  This way it was easy for the person to take the deal back over if conditions were not met.

I would not want to be in a position where someone could potentially bleed a property dry and then hand it back.

Originally posted by @Roy N. :

The amount of vendor carry is limited by the appetite of the vendor ... and how appealing of a case you can make to them.

Agreed...  The old saying "You get price or terms." holds true.

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