10 unit financing suggestion

[Siva K.]

Hello BP Forum, 

Looking for a creative financing suggestion. 

for a 10 unit off market property, Seller agrees to carry note for 45% of the value.

 Does conventional lenders finance if seller carry the  note for some portion ?

Appreciate your views. 

-Siva

[Tom S.]

@Siva K.  Of course, also take into consideration if you're able to finance, say 70% 1st position lender, 20% seller financed 2nd position - will the property cash flow with that amount of debt?  Seller will probably require a higher rate, 8-9% in today's market would seem reasonable.

Also remember your 1st position commercial loan will be a 15-20 term (higher monthly payment).  Very few 30 year commercial lenders.  Insurance and maintenance will be high as it's commercial (extra maintenance, lighting, heat in the common areas that can't be charged back to individual tenants).  In my area, the towns may require you cover a garbage dumpster for that many units. 

So factor all that into your cash flow calcs.