Seller/Owner financing 20 units and up.

[Stian Birkeland]

Hi. I am relatively new at this. Have done a few real estate transactions successfully before, but not in the US. The US is a really interesting market and I want to start investing in multifamily/apartment buildings and commercial real estate - especially real estate connected to the relentless growth of ecommerce. But my questions are simple. I want to grow and scale quickly. Strategy is to approach «mom & pop» sellers of multifamily, distressed properties with some sort of a problem, 10-25 % seller financing, rest bank loan, reposition the property after problem solved,refinance well, manage well and repeat process. Is seller still doable? I feel that it is. Which banks in Ohio, or nationwide allows for seller financing of the downpayment? What channels are most efficient for getting a decent deal-flow on these deals? Brokers, banks, online sites, etc? Mentors: Anybody that has done this successfully for at least 4-500 units in total, I am all ears. And willing to pay for your time. Because I know what it is worth. Kind regards, Stian Birkeland E-commerce Entrepreneur London, UK

[Jeff Kehl]

@Brandon Sturgill this kind of thing can definitely be done with commercial financing. I've bought 5 properties that way. You have to find the right lender. The ones I've done it with already knew and trusted me from other deals. Plus you need the right seller that doesn't mind holding a note for awhile. Finally, you need the right property because a) most won't cash flow very well with high leverage and b) it has to be something you see that others don't or you'll lose the deal to someone who offers the full down payment. One last consideration. Of the five I've done, I have paid off three, one matures next year And I'm actively trying to pay off the last one. Why? Because they're a pain in the ***. You're paying a lender who has never lent money before and they can be high maintenance. Also, when you pay them off, you have to be very careful they release the lien properly or you have a cloud in your title. If they die, disappear or go to prison it can make it hard to sell or refi the property. To summarize, I think it's a strategy that can work in some circumstances but it's mostly better to avoid it.