hi, i’m an investor from nv. i’m looking to purchase a 10 unit fully rented complex. list price is 879,000, owner will carry with 300,000 down. i need a hard money lender who is willing to lend in the second position.
The seller is suggesting on structuring a 66% private second if you can find a 300K second?
You can get up to 90 LTV financing on commercial (95 CLTV with a subordinated seller 2nd) and 80 LTV with hard money; why would you want a 66 LTV loan? Are the interest rates from the seller that compelling?
With very few exceptions, 100% commercial financing just doesn’t exist (and you won’t find anyone [even hard money] to take a subordinate position to a private 1st to get to 100 CLTV).
Can you flip the script?
If you could convince the seller to take the 2nd position, you have a better chance of creating a low money down arrangement (still now way to achieve 100%).
I agree there arent too many hard equity lenders that will take second position they are usually first.If you find one that will take secon please let me know
thank you for your responses, very good info