Seller carry Financing for Down Payment

[Tyler Eaton]

Hey again!

I am curious as to what seller carries actually look like in a deal, and how I should go about it. I originally was looking to go the SBA route, and use a CDC to qualify for the sba 504 loan. However, I don't think I want the restriction on tenants. That being the case, I started thinking about how a seller carry would work.

I realize that i have to find an owner that is willing to do something like this, which will be my first task. However, i want to know what i am asking for when I do end up finding the one. I work with a lot of independent landlords who own only one or two centers, so i am fairly confident in my ability to find one.

Moving onto my question, what would the term look like? If I were to ask the seller to carry the whole down payment for a $2m property, and pay them interest only with the lump sum at the end of 3 years, would that make sense? I figure if the numbers make sense for me, and I could offer them a full price with my contingencies, they may be fine with it. Does anyone have experience with navigating a way around a down payment? Seller carry financing? 

Thanks for all the help so far, by the way. I have heard over and over again how good the forums are, and really did not realize it until I started making posts. So, thank you all very much!

[Jerry Ayala]

@Tyler Eaton aloha Tyler, seller carry financing is my bread and butter. Think about it this way, you are upgrading the owner from a landlord to a lender. Much easier than securing your own funding. It can be done whether they have a mortgage or not. Depending on the owners situation and how much they trust you, down payment can be $0. Where in California are you?