5+ unit financing question

Financing, Hard Money Lenders, Private Money
1

I have a question regarding apartment financing. I have found a place I am interested in buying and it currently has an assumable loan for about 50% of the selling price, the other 50% is the seller’s equity.

There are two problems with assuming the loan; the first is that it has a balloon that will be due in 3 years, the second is that the seller, while he is willing to carry 30% of the equity, he wants the other 20% in cash which I don’t have.

So, my thinking was that the way to go would be to bring in new financing. I figured I could pay off the old loan and give the seller his 20% cash… new loan = 70%, owner carry = 30%

I have seen plenty of loan programs for 80% or less, but the problem is that the lenders don’t seem to allow owner carry financing.

Anyone know of a program that will give me 70+ and allow the seller to carry the rest?

Also any other comments on this would be welcome as well.

2

You could go a couple of ways on this.

  1. Have the seller take back 2 notes. One for 80% and a 2nd for 20%. He would hold onto the 20%, but sell the first note for a lump some to a note investor. Of course he wouldn’t get full value, but he might be willing to do this.

  2. The other is to try private commercial lenders. I have some you can look into or I can help you with, just contact me and let me know.

  3. The other is do get a HML lender to cover you until you build up more equity to refinance. But this is an expensive way to go.

Hope that helps!