Greetings!! Me and my brother are just starting our Real Estate Business and we have an off market deal that a local investor and one of our realtors approached us with. It is a 6 unit Multi, One Duplex and a Quad all on the same property. The Investor is offering to do owner financing for us at 6% with the option to just pay the interest for a time. He wants us to eventually re-finance the property and pay him in full. Within the first one to two years. The property is zoned commercial and we are trying to determine the best way to finance the property after we close on the deal. I spoke to my broker and he is looking into the possibility of financing the two buildings separately. I have also been told that a commercial loan with a local bank may be the best option to look into. Thoughts or suggestions!
Owner financing always makes me just a little more cautious. As though the seller is lulling me to drop my guard. Check everything, have it all inspected by a licensed pro and go with him/her. Review the financials, rentroll and leases. Check the cashflow, the neighborhood, and have your lawyer review any agreement, check, check. All the best!