Vendor Take Back versus Promissory Note

[Genevieve Vienneau]

Hi, 

I'm working on making an offer on a quadriplex that needs work. My plan is to do the work, rent it, and refinance it. The seller is prpared to offer 20% vendor take back. I have a few questions:

- If I'm dealing wiht an A lender (National Bank), I imagine they won't be fine with having a second mortgage on the property, right?

- Could I instead make an offer that includes a promissory note instead of a VTB?  A Promissory Note is not registered against the property, corrrect? 

- If I want to still go with the A lender, and do the agreement for the VTB on the side, would the A lender would be able to see the second mortgage on the property at the time of refi? Coud this cause me issues? 

I'm really not sure how to structure this deal, but the numbers work so I want to give it my all. I'm not married to the A lender - so if anyone has any suggestions I'm all ears. The deal is in NB and I'm in ON.

thanks!

[Dan Crosby]

Hey Genevieve,

1) They rarely allow a second.

2) You can make an offer on anything you want; whether the seller accepts it is another question. I know I wouldn't accept a promissory note.

3) There are definitely ways to do this, but it would have to be registered after closing, and you can't give the lender a reason to run a search.

[Cameron Robinson]

@Genevieve Vienneau did you make this deal work? If so how?

[Genevieve Vienneau]

Quote from @Cameron Robinson:

@Genevieve Vienneau did you make this deal work? If so how?

 Hi! Sorry for the delay - no, I didn't end up pursuing this deal for other reasons than financing. 

[Genevieve Vienneau]

Quote from @Dan Crosby:

Hey Genevieve,

1) They rarely allow a second.

2) You can make an offer on anything you want; whether the seller accepts it is another question. I know I wouldn't accept a promissory note.

3) There are definitely ways to do this, but it would have to be registered after closing, and you can't give the lender a reason to run a search.

 Thank you very much!