Seller Financing an Office Building

[Michael Macaluso]

Hey everyone,

I'm looking for some professional insight/ideas to acquire a property in my town. I currently am looking for an office building to move my business into. I came across a building for sale that has 8 units with an asking price of 550k. My lender told me they would lend 70% of the purchase price which means I would have to put down 165k. Although this is feasible, I'm looking for a creative way to acquire this property without using 165k of my cash/equity.

I've heard of using seller financing as a tool and would be interested in learning a solid way of doing this since I believe this is a great tool in property acquisition. The only problem.. I have no idea how to utilize this tool.

So my question is, how could I structure an agreement without spending 165k plus closing costs.

Some specs of the deal. Purchase price 550k, loan at 70% with 8% interest, 14k in property taxes(NJ lol), and 2k insurance. The property currently rents for 6800 month.

As always, I appreciate any insight. Thank you!