70% Seller Finance, 6% (buyer cash), 24% Banks

[Vijay G.]

hello Team, 

Any banks willing to take second lien on the property lending 24%? we are possibly thinking of bridge loan (interest only payments for the next 2 years). Any creative finance ideas would be appreciated!

Thanks

[Jason Wray]

Thats a Big No... You will not find a bank that is going to offer traditional financing and be okay in Second lien position. You might want to talk to a hard money lender HML or private financing. You have two parties involved in the "Risk" process and the owner sits in the primary 1st lien position. So naturally if something happens the seller gets the property back. The bank is out it's money unless the seller can satisfy the lien on a deed in leu or a sale of the property.

Second lien holders alwasy get stuck with either nothing or the left overs!