Stacking financing strategies /looking for flexible lenders as well

Boston, Massachusetts
Creative Real Estate Financing
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Stacking financing strategies /looking for flexible lenders as well

Rion Manita
Real Estate Broker · Boston, MA · Member since 2015 · 57 posts · 11 votes

Hello Biggerpockets

I'm working on some deals where buyers are trying to stack owner financing with a bank or private lender, what are some strategies to get these across the finish line and or some solid lenders that operate in these capacities that are flexible.

thank you

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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
11mo
Quote from @Rion Manita:

Hello Biggerpockets

I'm working on some deals where buyers are trying to stack owner financing with a bank or private lender, what are some strategies to get these across the finish line and or some solid lenders that operate in these capacities that are flexible.

thank you


 There are lenders that allow seller seconds. Where most go wrong is when they try to record the lien without disclosing to the lender. The lender will often call the note due if you try this without them knowing. 

[email protected]818-269-7983
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  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    11mo

    Rion,

    This is fairly easy to do if you are doing a DSCR loan where you have a either a "Silent held Second" or seller held second where you have it part of the contract/addendum. There are a few ways the lender can use it in the loan or aside with title.

    Feel free to check out my profile and send me an email or message.

    [email protected]727-637-4289
    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
    11mo
    Quote from @Rion Manita:

    Hello Biggerpockets

    I'm working on some deals where buyers are trying to stack owner financing with a bank or private lender, what are some strategies to get these across the finish line and or some solid lenders that operate in these capacities that are flexible.

    thank you


     Rion, I am a local Mass-based broker. This is no problem at all. We get a ton of requests like this is throughout Boston Proper because of the commonality of the building type. As long as they have at least 10% down they can get this done as a primary owner oc NONQM loan. Happy to connect

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
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  • Rion Manita
    OP
    Real Estate Broker · Boston, MA · Member since 2015 · 57 posts · 11 votes
    11mo

    Thank you@Devin Peterson and@Jason Wray

    0Reply
  • Jake YuskaitisBusiness Member
    Lender · New Jersey, USA · Member since 2022 · 254 posts · 67 votes
    11mo

    most lenders will not allow this or legally recognize the second.

    [email protected]551-287-6884
    Frontier Funding LLC533 Reviews
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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    11mo
    Quote from @Rion Manita:

    Hello Biggerpockets

    I'm working on some deals where buyers are trying to stack owner financing with a bank or private lender, what are some strategies to get these across the finish line and or some solid lenders that operate in these capacities that are flexible.

    thank you

    Word of warning - everything must be disclosed to all lenders.  “Silent” second, “owner occupied” when it’s investment property is MORTGAGE FRAUD.  
    Private Mortgage Financing Partners, LLC
    WebsiteView Page
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    • Rion Manita
      OP
      Real Estate Broker · Boston, MA · Member since 2015 · 57 posts · 11 votes
      11mo

      @Don Konipol well said 

      0Reply
    • Jason WrayPro Member
      Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
      11mo
      Quote from @Rion Manita:

      @Don Konipol well said 


       Rion,

      One thing to keep in mind there are some industry lingo that can be confusing for example like "Silent Held Second".  There are a few Non/QM Lenders that allow for a "Seller Held Second" but this mean the seller agrees to hold a small portion but at (Zero interest and Zero payment) for 5 year or more.  

      The lender can allow this as long as the small portion held falls under a CLTV Cap Maximum under guide lines. This can and usually will be recorded at closing or with title. Keep in mind there are a lot of lenders or NON/QM investors that "Do Not" allow this or may not know how to set it up correctly.

      If you ever have any questions feel free to check out my profile and email me if needed.

      [email protected]727-637-4289
      0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    11mo
    Quote from @Rion Manita:

    Hello Biggerpockets

    I'm working on some deals where buyers are trying to stack owner financing with a bank or private lender, what are some strategies to get these across the finish line and or some solid lenders that operate in these capacities that are flexible.

    thank you


     There are lenders that allow seller seconds. Where most go wrong is when they try to record the lien without disclosing to the lender. The lender will often call the note due if you try this without them knowing. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    1Reply
  • Scott Brockelbank Jr.Pro Member
    Investor · NH · Member since 2018 · 36 posts · 21 votes
    11mo

    I am working on a deal like this right now. I am trying to use another property I already own as collateral on a promissory note as to not trigger any covenants. I have disclosed to the lender so they are aware and have made sure my DSCR is still strong with the promissory note payments.

    1Reply
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