Real Estate Consultant · UT · Member since 2022 · 3 posts · 0 votes
So I am working with a seller that is open to seller finance, but they need 10% down payment. I am wondering how it would work if I use a private money lender for the down payment and how I would structure the seller finance deal so I can pay off. For context: If we do a standard 30 year amortization, monthly PITI is roughly $1800 and rent is $2400. Down payment would be $30k. All advice helps! Thank you.
So I am working with a seller that is open to seller finance, but they need 10% down payment. I am wondering how it would work if I use a private money lender for the down payment and how I would structure the seller finance deal so I can pay off. For context: If we do a standard 30 year amortization, monthly PITI is roughly $1800 and rent is $2400. Down payment would be $30k. All advice helps! Thank you.
Well, now I'm a little confused. Why would you have both? "monthly PITI is roughly $1800 and rent is $2400"
anyone coming in on a second position will likely not want to take the final 10% of the deal - super risky for them if they are forced to foreclose on you. Could you instead try to get an unsecured loan for the final 10%? Or perhaps one secured by another asset you have? Could also ask the seller if you could pay them back the DP over some reasonable period of time.
If financing it with debt isn’t possible you may consider bringing in an equity capital partner and giving them a % of the deal, sharing profits, etc.
One option that can also work is to get unsecured funding. It's out there and available from lenders who don't have as strict criteria as conventional banks.