Creative Financing

[Chase Schmidt]

Is it too late to creatively finance a multi-family property once it's listed by a realtor?

Are there any examples of the best way of working the financing once the property is listed on the MLS? Master Purchase Agreement? Owner Financed? Contract for Deed?...

[Curtis Bidwell]

@Chase Schmidt You can be as creative as the seller will accommodate.  But as @Anthony Chara has indicated, the listing agent needs to be paid!  When I've done deals that get creative I still make sure there's enough cash to cover commissions and closing taxes.  After that it is very common to do owner carry backs.  (I've actually paid their taxes at closing and recouped it through lowered payments for the first year!)

Often times a commercial property has a non-standard or unique structure, or any number of other issues that make standard financing challenging.  Owner's sometimes have to carry back a portion -or all their equity position in order to get a buyer that can get the balance financed (sometimes they may only get 50-70% from a bank on a given property).  And obviously that creative payment can be anything of value the two of you agree on!