Partial Sellers Financing

[Kyler J Sloan]

I am new to real estate investing, and have a simple question. 

Can I do 50% sellers financing if the mortgage owed by the seller can be covered by the mortgage amount I qualify for? 

In my case, the seller of a 600 K multi-family has a remaining mortgage balance of 200 K, and I can obtain a loan for 350 K -- is there anything preventing me from financing 300 K through a bank, and asking the seller to carry the remaining 300 K? 

Thanks in advance for any feedback

[Lee Judd]

@Kyler J Sloan There is nothing preventing you from doing that. However that bank will require a 1st lien position so the seller will have to be willing to take a 2nd lien position behind the bank. If that works for him great. Most lenders, sellers included, want to see that you have some skin in the game before they will make a loan. As presented there is nothing preventing you from walking away at any point since you have none of your own money invested. Seller then has to pay off a $300k note to bank instead of the 200k he originally owed. There is not much incentive for him to make that deal.