Seller Carry Back Financing Question?

4 Replies


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,

Thank you,


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.

Arlan Potter I am currently starting to work a deal on a 48 unit apartment complex. Seller willing to carry back 18%. I would love to see how the numbers worked on yours if you had time.

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