creative MF deal with existing loan

[Andreas Prechtl]

Hi guys,

my partner and I a re looking at a MF deal that has some value add and the numbers make sense.

The deal has a caveat though. There is an existing loan on it that has a "yield maintenance prepayment penalty" that is extremely hefty, so the sellers want us to assume the loan.

Assuming that loan and coming up with the cash for the rest, makes the deal extremely unattractive from a financials perspective.

Now my question to all of you:

Do you have any ideas for creative ways of structuring that deal in a way that makes both sense for the buyers and the sellers?

We appreciate every idea. Thanks for reading this far and enjoy your weekend everyone :)

[Bjorn Ahlblad]

@Andreas Prechtl The seller will have the same problem with any prospective buyer. Deals may have fallen apart, and the property may have had a lot of time on the market. Seller knows if he wants to sell he will have to give up some of his profit.