I was wonder if anyone has success in using seller carry back financing on 6-12 unit apartment buildings.
My idea was to get the building financed with my own 20%, but after closing, have the seller carry back 10% with a 10-15 year note.
Are banks open to it or not really? Do you think the bank would have an issue if a lien is put on the property after the close for 10%?
Any ideas would be helpful,
I have done this on residential properties, not apartment buildings. As long as you have commercial/portfolio lending, the lenders are typically okay with it. You typically will do it as a part of closing, and the lender will factor it in while doing their underwriting.
I'm working on a 8 unit residential package right now where the seller is carrying a 2nd for 10% of the purchase price, with me only bringing in 10% down payment to closing.
The note would obviously have to be 2nd, behind the first note of the lender. The current lender I'm working with increased their rate a "bit" because the CLTV is now 90% instead of 80%
we recently bought 32 units(8-4plexes) with 70% bank, 20% seller, and 10% me.
Thanks for feedback guys
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