Creative Financing Options

[Amir Mohammed]

Hello All,

I need some expert advice.

I am a rental property investor and I am looking to buy a 8 unit multifamily property in Michigan. I had approached the seller to owner finance the property and my terms where 80 % from the bank and 20 % down payment from seller to escrow so I can close the property and pay him for the down payment in a monthly installment. The owner owns the property outright and I was giving him the price what he was asking for. The house was listed for $ 545 K and 20 % was $109 K. The bank was paying him $ 436 K. So, technically I had two loans . One to the mortgage company and one to the seller. Strategy was to use seller financing with no money down from my side.

But the seller got back to me and said, he is willing to reduce the price by $80 k. But he said get your own down payment and buy the house once the closing is completed and he gets paid he would write me a check of 80 K. The contract can be written by the lawyers. My LLC is relatively new and no bank or credit union is willing to offer me $ 110 K and I cannot even pull that kind of money on a personal loan. Technically I need the $110 K for a week and I can pay back the $80 K immediately and pending balance in installments. I have a rental property and don't have $110 K of equity to use as a collateral.

[Kerry Noble Jr]

So you were trying to give him the 2nd position and the bank take the first position. Why not partner with someone who has private money who can finance the deal....and pay owner off now.......especially with the 80K price drop. Or see if you can get a DSCR loan