Seller Financed 2nd Positions for 100% Financing

[Dylan Thomas]

I'm curious to hear what others in the group have to say about creative financing options in today's market with higher interest rates. This is geared towards commercial properties. 

I've been talking to brokers and agents across the country to gauge the willingness of their sellers to finance a portion of their asking price. Obviously, a 2nd position of 20-30% would benefit buyers in that they would have to come up with little to nothing down. They would also benefit from an interest rate on the carried portion that is most likely lower than the average market rate. 

However, it also seems like a benefit to a seller because they would be able to sell their property much more quickly by adopting a more creative stance. The property would, of course, have to have a high cap rate, such as 8%+, to make sense for a buyer, but depending on the balloon period, the seller wouldn't have to carry the debt for too long. 

I've noticed that there are quite a few sellers willing to do this in order to facilitate a deal. So I have a few questions:

For anyone, what do you generally think of this type of deal structure?

For buyers, is this a strategy you would be interested in adopting?

For seller, would this be something you would feel comfortable with for your own property?

[Jay Hinrichs]

is this assuming your taking title sub to the first..  If your getting a new loan I suspect that will be an issue with the first position lender.