Appraisal issue - creative financing

[Daniel Vaz]

Hi,  I found a 4plex for $300K with good cap rate. I am able to put up to 25% down (which is what the bank is asking) but the seller is only considering cash offers due to appraisal not going through at the current price in previous deal attempt. They are not willing to sell at appraisal price.

Anybody with similar experience and how to overcome? I am thinking of creative financing options, maybe proposing a seller financed deal? I have never done that before so looking for advice on how to approach and structure similar deals. Thanks!

[Jim Sakalis]

Daniel,

I am not sure why anyone would want to buy something that will not appraise nor put up that much down payment, but if you really want to move forward with this have the seller hold a 2nd mortgage for the difference.

I don't know all your numbers regarding positive cash flow, but its not a deal I would be excited about.

Best of luck to you,

Jim