16 unit purchase needs creative financing solution

[Eugene Mar]

I am looking at purchasing a 16 unit multi family building. The purchase price is $675,000. I was able to find financing for 65% LTV at a rate of around 5%. However, in order to make my deal work I need 75% LTV. I have gone thru four lenders and although at first they said they can do it they eventually come back with only 65% LTV.

One of the reasons is because I am a foreign national. I have substantial assets in Canada but these lenders are not very investor friendly.

I have been dealing with this seller for a long time and he knows I am serious. It is just a matter of the financing. The seller is also in a crunch because he wants to do a 1031 exchange. As much as I wanted the property I told the seller it can't be done. My contract expired over a month ago and he had it listed on the MLS. Today, I got a call from the seller's agent and he informed me the seller is willing to finance me 70% LTV at 5% for 25 years. That was quite a surprise.

Now that I know the seller is motivated and is willing to work with me what can I squeeze from him?

This is where I need some input from fellow investors. Ideally, I want to put as little down as possible.

Can I get the 65% LTV conventional loan and perhaps ask the seller for 35% seller financing? Is that asking too much? My cash flow will still be positive.

Or should I ask the seller for 15% and have him carry a 2nd mortgage? Will the lender frown upon this and not issue the loan?

Any kind of creative strategies here will be greatly appreciated.