2nd Position on Loan

[Cody Hunter]

HI All,

Example: On a million dollar property, the seller will finance w/ 20% down ($200K). Then HML is secured for the $200K.

When seller financing, is it common that the seller would take 2nd to HML to close a deal? What about HML 2nd to seller-this is a much high interest? Maybe just some clarification as to if this is workable...

Thanks! 

[Tom S.]

@Cody Hunter HML might do the 1st position for $200k on a $1M property. None would do 2nd position in that scenario though.

The big question though, HML is only short term money: 6 -12 months. What's your exit strategy? And if prices start to fall in the next year and you're financed at 100% and you're selling, do you have a way to come up with the extra funds to sell if that happens?