Commercial Real Estate Credits?

[Ryan Sajdera]

Can anyone shed some light onto the topic of credits when financing a commercial deal? I’m guessing this is similar to a concession on the residential side but I can’t find any info on it. I met a guy who said he used a deferred maintenance credit to help offset his down payment.

Example: the buyer and seller negotiate a $900,000 property down to $800,000. The buyer finances the property for $900,000 and the seller gives him back $100,000 as a “deferred maintenance credit” which he uses to offset his down payment. Do banks allow this? Does anyone use anything similar to negotiate financing? Thanks!