Looking for lenders who allows seller carrybacks

Creative Real Estate Financing
1yFollow

Looking for lenders who allows seller carrybacks

Pratik Kochar
Member since 2024 · 18 posts · 4 votes

Hi, I’m looking to finance an commercial property and am exploring a structure where the seller carries back a portion of the down payment. Does any lenders allow secondary financing or seller carrybacks?

I am trying to get 65 LTV with 10 % down from my pocket and 25% seller carries back of down payment

1Reply
49 views

Most Popular Reply

Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
1y

I can't help, but I want to see the answers on this one.

1Reply
See this reply in the discussion

10 Replies

Jump to latestLatest
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    I can't help, but I want to see the answers on this one.

    1Reply
  • Pratik Kochar
    OP
    Member since 2024 · 18 posts · 4 votes
    1y

    I am exploring all the options as seller is ready to take up to $150k on second position with purchase price $675000

    my preference is to keep out of pocket cash low. Anyone can creatively  structure the deal with this ?


    other option is seller financing but the price is 725000 with 4% interest only and 5 yr balloon and 25% down

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Pratik Kochar:

    Hi, I’m looking to finance an commercial property and am exploring a structure where the seller carries back a portion of the down payment. Does any lenders allow secondary financing or seller carrybacks?

    I am trying to get 65 LTV with 10 % down from my pocket and 25% seller carries back of down payment


     I knew someone who did this back in the day and got completely hosed as the buyer did not have an exit strategy outside of appreciation and could not refinance and they were stuck taking it back. 

    If someone could do this, what is your exit strategy taht willbe question #1. You will need another 20-30% equity in the property and how are you going to get there?

    7e investments53 Reviews
    WebsiteView Page
    0Reply
  • Pratik Kochar
    OP
    Member since 2024 · 18 posts · 4 votes
    1y

    It’s 6 unit apt complex and rents are way below market. 

    I am not in cash crunch but I wanted to utilize the cash for the units to do upgrade for next 5 years incrementally as tenants move out and increase the rent up by atleast 30%. If the appraisal is good enough with 675000 as of now, conservatively in 5 years with rent upgrades, refinance should be around 750000-775000 and I can manage to keep $100k as buffer during refi. 

    Again evaluating the deal as of now, so all the comments and advise is appreciated.

    0Reply
  • Chad Davis
    Lender · Richmond VA · Member since 2012 · 301 posts · 30 votes
    1y

    @Pratik Kochar Some hard money lenders will allow a seller carry however a clear exit strategy must be in place. Also to consider you will have double the cost on the purchase with a hard money and refinance into more conventional financing. Title, fees etc. 

    0Reply
  • Tarik Turner
    Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
    1y

    Depending on the property type this is 100% possible but the rates will be pretty high. Feel free to reach out

    0Reply
  • Brandon Croucier
    Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes
    1y

    I can do these.

    Happy to connect

    1Reply
  • Jake YuskaitisBusiness Member
    Lender · New Jersey, USA · Member since 2022 · 254 posts · 67 votes
    1y

    I actually know of lenders that will do this exact kind of structure you're looking for on commercial properties.

    [email protected]551-287-6884
    Frontier Funding LLC533 Reviews
    WebsiteView Page
    0Reply
  • Sasha MohammedPro Member
    Lender · Costa Mesa, CA · Member since 2018 · 336 posts · 245 votes
    1y

    we did have a lender that was doing up to 90 CLTV (10% down and would allow for seller carryback)... I would have to find out if they are still doing it, though. For educational purposes: these loans do exist.

    [email protected]949-351-1338
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free