Loan options for 4 unit apartment building

[Ryan Charron]

Hello everyone, I am currently in the market for a 4 unit apartment building and everyone I’ve talked to says a minimum of 25% down is required if it is not an owner occupied property. Does anyone know if there are any lenders that offer a lower minimum down payment? Thanks in advance!

[Kevin Brenner]

Have you considered a Seller Second to assist you with the DP.  Its an owner financing technique where you get a commercial 1st mortgage and then negotitate a 2nd mortgage with the seller for 15-20% of the DP at a certain interest rate.  Its a win win because you get lower exposure on the DP and the seller cash flows for a few years after the sale! This only works if you have a good deal with favorable margins though - you dont want the 2nd mortgage to put you underwater on the property!