I am finalizing negotiations to buy 1st apartment building for $2 million. I have to assume existing mortgage of $1.2 million or else prepayment penalty for seller. Seller will hold paper but I have barely enough liquid asset to get through closing and expected repairs. Is establishing a line of credit possible? What are the best sources?
If the seller is holding paper for the balance of your purchase price, how much equity is left to secure a line of credit? Do you have other assets to secure a credit line? How about a home equity line of credit on your primary residence?
Hi Dave T.
You are always there to help.
Purchase price $2MM, Repairs $100K, Closing $60K.
Assumable Mortgage $1.2MM, Seller’s Paper $165K, My equity $795K.
I got no liquid asset left. Would like a line of credit for obvious reasons.
Thanks. Any guidance will be much appreciated.
Oh also have $700K equity in primary but don’t want line of credit there. Tough to get now anyway because self employed.