5 plex with a 25% carry back and 75% Commercial loan

[David McCready]

Hey all,

I am currently negotiating on a 5 plex and the owner is willing to carry back 25% of the purchase price as my down payment so I can remain liquid.  The 25% would be amortized over 20 years with a 4 year balloon. The property is under rented by approximately $500/month.  

My question is how do I structure this with the bank that is providing the commercial financing on the remaining 75%.

I have found that if I tell the bank that the 25% is a carry back they don't want to loan on the property because I don't have skin in the game.  

Thank you in advance for your advice.  If you need more info, please ask.