Small Retail Strip Center

[Clenvic Cayme]

Hey Guys,

Me and my brother are currently looking at this small strip mall that is approximately 350k, yearly gross income is around 54k and the expenses are about 11k but it does need repairs. It has 4 tenants: an MMA gym, art studio, beauty supply shop and recently moved in hair saloon (currently renovating still). The owner is willing to do sellers financing but he wants 50% down, we have enough to cover it but i dont want to use up most of the money just in case of vacancy and repairs.

I have been looking for financing from commercial lenders and most of them offer 25% down but arent willing to do a sellers carry/note. I was hoping to do a sellers carry for the down payment: So it would look like 75% mortgage, 10% down from me, and 15% from the owner (which would be a secondary loan). The issue is all the banks that i have talked to wont allow this. Is it possible/legal for me to put down 25% and close on the property. Once i have the property the seller will give me the 15% and have a secondary loan on the strip mall as collateral?

Another thing i was wondering was the owner stated that these guys paid cash. What should i ask for from the Owner to know that they are actually paying their rent, should i just speak to the tenants individually?

This would be my first commercial investment so any advice or tips would be appreciated.

Thanks