Refinancing after seller financing ends

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.



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.

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.