Creative ways to buy large multifamilies

[Chris Wyche]

I'm looking to buy an apartment building/community with using mostly seller financing. For example, if a property is offered at 1,000,000, I would offer the seller full price with 100% financing, making interest only payments for about a year or so while I raise the NOI enough to refi at 75% and give the seller their $1,000,000 with the cash out. Has anybody had success in structuring a deal like this or something similar?

[Gino Barbaro]

@Chris Wyche

Hi Chris,

Would you take that deal? I wouldn't!  Normally, seller financing involves a bank to provide the majority of the financing and the seller provides a "note" for either part or the entire down payment.  

Then it is your job to raise the NOI, refi and pay off the old mortgage and the seller's note. Google seller financing and look up articles on BP. I wrote a creative financing article here around a year ago and showed how we financed our first deal by using owner financing.

Gino