Seller-financed down payment and Loan for the balance

[Christian Rivas Plata]

Hello everyone!

My partner and I are looking into purchasing a multifamily building (6 unit) in Hartford, CT and trying to come up with some creative ways to put the least amount out of pocket into this deal and still make it a win-win for the seller and us.

One of the things we are exploring is having the seller finance the down payment (20-25%), but not sure how to go about it as I have been told that lenders would not allow the seller to put the down payment (a 20% mtg to the seller and 80% mtg to the lender... essentially us not putting any money or "skin in the game"). But i cant imagine this hasn't been done before.

Has anyone tried/done this before? How did you go about doing it? Or am i approaching this totally wrong and unrealistically?

Thank you in advance for you responses!

[Jamie Burns]

@Christian Rivas Plata

Currently looking at doing the same thing on an 8 unit here in Orlando. Seller mentioned his 'dream selling price', which he's not asking, and seemed opened to owner financing. Putting together an LOI at his 'dream' price with 0% down, 0% int, amt over 30-35 years. Our reasoning for asking for 0% int., would be that we are paying the interest up front in the means of 'over paying' with the purchase price. The numbers work on 0% down, 10% down and even 20% down with 0% financing. Hoping we can use the sellers 'greed button' and 'pain point' (he self manages and wants to relocate) and make it a win-win for all!

And as @Darin Bowers mentioned, you're saving money on CC as well. 

Hope some part of this helps with looking at it creatively. Fingers crossed for ya!