Bank Loans

8 Replies

if I want to purchase an apartment complex and the current owner is asking for a 20% down of the selling price and I have 8% of that 20% down payment , can the bank loan me the other 12% ?

No, that would be a second mortgage for the bank...won't happen.

wayne,  you mean second mirtgage like a ahome Equity Lioan?if he wants  to buy commercial proprty( greater than 4 units) what do you suggest he do to obtain the rest of the down payment?

have you asked him if he will carry a second? If not, why not? If he's motivated, then he might. That's going to be a deciding factor. It's even tougher these days to get financing from banks. 

Originally posted by @Christian Garcia:

if I want to purchase an apartment complex and the current owner is asking for a 20% down of the selling price and I have 8% of that 20% down payment , can the bank loan me the other 12% ?

 You would be hard pressed to find a lender to loan you the other 12% of the downpayment if it needed to sit behind the sellers 1st owner financing.

How motivated is the seller? Would he perhaps carry owner financing behind a lenders 1st trust deed for the 12%? Its unlikely a seller would agree to this unless they are really motivated to sell. In addition, you would really need to search for a lender that would be willing to lend in this scenario, but there maybe some lenders that will, including some hard money lenders.

You didn't provide your purpose for the acquisition, long term investment, value add improvement to flip or refinance later.

As in real estate acquisitions and ownership, details matter too in being able to providing useful guidance. With little details, little guidance can be provided.

what's your credit situation like? You maybe able to get rest of the down payment without the bank

I've researched getting a commercial FHA loan with less than 8% down, but these take a lot of time. It doesn't cover repairs and has some pretty strict qualifications and take a long time.

Does your seller have a certain time frame they want to sell? One of the qualifications of this loan was having experience in property management and showing reserves to cover deferred maintenance. You can do some research yourself based on your due diligence and relationship with the seller. @Christopher Telles  is right. We can't comment on what we don't know about the property...

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maybe try to get a Line Of Credit for the additional 12%

Other than they you should try to get 80% from bank and 10% from seller.  Most banks usually wont allow more than that on a second from the seller (now-a-days)

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