Refinancing after seller financing ends

General Real Estate Investing
1

I am putting together an offer for a 9 unit apartment building. The owner is willing to do 100% seller financing for 12 months then offers to carry 20% with me getting conventional for the other 80%.

My question is after I have owned and operated the building for 12 months with anticipated cash flow of 2150.00 per month, will a lender loan the 80% and accept the seller taking a 2nd instead of me having to come up with the 20% in cash? Any replies or suggestions on how to set this up the best way would be appreciated.

Thanks

Mark

2

mark. There are some commercial lenders that can do this scenario for you. There are a few that are easy to do business with. They are stated income and asset and base LTV’s off of your credit score.

3

MY suggestion:

Get INTO the property before you worry about getting OUT of the mortgage.

Once you have owned it awhile, more opportunities or choices in re-financing may arise.

Your seller may want to get some money out but he may consider changing the terms after the 12 months, possibly accepting a higher % of the loan.

You may just want to sell the place for a huge profit if that becomes an option.

That’s why I say get INTO it and worry about 12 months from now…in about 10 months.

Jeff