Seller Finance For A Student House Portfolio

[Dominic Inglese]

Hey BiggerPockets!

So, a partner of mine and myself are looking to purchase student rental property. We came across a seller who is selling his entire portfolio consisting of 11 properties and 26 units. We have had a discussion with him broaching the subject of seller finance and he was very open to the idea implying that his biggest motivation for selling is to be able to get into more commercial real estate and leave student housing behind to free up some of his time and enable himself to focus on growing in other areas of his business. The issue with seller financing in this case is that he only holds about 45% equity in his properties, and he has one mortgage that covers the entire portfolio. We want to be able to set up a seller finance deal (or any other sort of creative finance deal but preferably seller finance) where we are able to eliminate the risk of the due of sale clause being used in this instance as this would hurt both the seller and ourselves. We are working with a pair of experienced agents and an attorney to sort this out so we can make an offer, but I was curious to see what the BiggerPockets community would have to say about a situation like this. Thanks everyone!