Owner Carry - How common is it in today’s Market?

[Edward Stephens]

Hi BP!  How common is it in today’s market for a seller to carry a 2nd mortgage when selling his apartment building? Is the market too hot for today’s apartment building buyers to reasonably ask a seller to hold.a second mortgage as part of the deal? Thanks in advance.

[Jay Hinrichs]

Originally posted by @Todd Dexheimer:

I've done it 5 times over the past 3 years. The key is to ask and show them the numbers. Many sellers don't want seller financing, because they don't understand it. Show them the amortization schedule and explain to them in writing what the terms are and how they benefit. 

as stated proper presentation makes all the difference normally you have to entice the seller with rates a tad higher than what you can get form a commercial lender but keep in mind no points no appraisals no due diligence fee's etc etc.  although many MF investors look to 1031 so the amount willing to carry will be somewhat shrunk but it can work no doubt..