Seller/Owner Financing for Multifamily Acquisitions

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I'm looking into buying an apartment building. I'm trying to come up with a good way to present a solid offer to the seller for seller financing that would would be favorable so it would be a very sweet deal for him that he couldn't pass on.

The property is selling for $3.2m 7% CAP. It's annual Net Revenue is $216k

What's the best way to present 100% seller financing ? I could put down $35k Plus he has security deposits that have a total value of $18k, so not sure if those could be used for the down payment also?

Originally posted by @Ron B. :

I'm looking into buying an apartment building. I'm trying to come up with a good way to present a solid offer to the seller for seller financing that would would be favorable so it would be a very sweet deal for him that he couldn't pass on.

The property is selling for $3.2m 7% CAP. It's annual Net Revenue is $216k

What's the best way to present 100% seller financing ? I could put down $35k Plus he has security deposits that have a total value of $18k, so not sure if those could be used for the down payment also?

If you are putting $35k down that would go towards closing expenses and may require more spending on the asset and the location. The security deposit need to be transferred and held in a separate account as that is not the sellers money or the buyers money it belongs to the tenant and many states have very strict rules regarding deposits.

The seller will not likely come out of pocket to sell you the property so you may need to be prepared to raise some money and or bring in a partner. If you found a true and real 7 CAP on actuals that should not be hard to do and you will likely be facing competition.

You could offer the seller 5% interest only with a 5 year balloon to gauge interest. If they are reluctant offer an equity stake and see if that peaks interest.