Updated almost 8 years ago on . Most recent reply
Owner Financing on a Multi-family! Any Advice?
Hello all,
I currently own 3 townhomes on a street with a total of 12 townhomes. The owner next to me has offered me a owner finance deal for his 8 town homes for 400,000. He wants 80,000 up front on a 3 year balloon with a 5 percent interest with no points. I was wondering if anyone has done a deal like this before and/or if anyone had any tips on creative ways to get around paying the down payment! I do not have the full 80,000 to front right now but I don't want the opportunity to slip out of my hands!
Most Popular Reply
He’s basically asking you to do 20 percent down but only for 3 years. To me this seems very close to traditional bank financing. Can you see if he will come down on percent down?
If not, then I’d just go find a commercial lender to do the whole deal. You’re gonna have to refinance in 3 years so why not just finance it once instead