commercial lender in northern Colorado no money down

[Chris Moore]

Hello everyone, I'm not sure if this is the correct forum, so bare with me.

I have an offer in on an office Building in Northern Colorado. Its a 3 mill asking price with a 800k seller back. So potentially a no-money down situation! I'm having a hard time with a bank that will accept that. I'm offering liens on my other properties to help, but I am getting the feeling big banks don't care. Does anyone have any suggestions? 

Oh and the building was recently remodeled so it's mostly vacant, and will be probably negative cash flow after debt coverage, but has huge potential. 

Thanks for any help!

[Bill S.]

Originally posted by @Chris Moore:

Hello everyone, I'm not sure if this is the correct forum, so bare with me.

I have an offer in on an office Building in Northern Colorado. Its a 3 mill asking price with a 800k seller back. So potentially a no-money down situation! I'm having a hard time with a bank that will accept that. I'm offering liens on my other properties to help, but I am getting the feeling big banks don't care. Does anyone have any suggestions? 

Oh and the building was recently remodeled so it's mostly vacant, and will be probably negative cash flow after debt coverage, but has huge potential. 

Thanks for any help!

 big banks = "NO". You need to find small local institutions (banks and credit unions) or private money. Private money would likely be enticed by getting a share of the proceeds. Pretty much any way you look at it, you would use short term (1-2 year and expensive) money to buy and operate until the property is rented. Then you get longer term permanent financing after the property is stabilized.

I do find the idea that the seller is willing to carry back 100%. That is a trick used by sellers to attract novice investors into paying above market prices. If they can offer $800k in carry back, why don't they just rent up the property and do a conventional sale with an occupied property. These kind of deals smell fishy. Do your due diligence!!!