1108 3rd Ave Huntington, WV 25701 · Member since 2025 · 3 posts · 1 vote
20% Seller Financing Note and 5% cash to put down. Would any private equity lender loan on these terms? It appears to me the SBA loans will not qualify based on the owner occupancy rules.
Realtor · Memphis, TN · Member since 2010 · 425 posts · 117 votes
1y
Hi Ethan,
Interesting structure—creative financing definitely opens doors. You're right about SBA's owner-occupancy restrictions making it tough here. In terms of private equity or debt funds, some will look at it if the seller note is properly subordinated and the DSCR checks out. Terms may be tighter (higher rate, shorter amortization), but it's not impossible.
Are you targeting stabilized properties, or is this more of a value-add play? That can make a big difference in which lenders might entertain it.
1108 3rd Ave Huntington, WV 25701 · Member since 2025 · 3 posts · 1 vote
1y
Terrance,
This property already stands on its foundation extremely well (1.5), but it could be restructured as a value add play as it has some spaces to fill and I am already speaking to some new potential tenants. I will be putting my firm in the building as well.