Guidance for my first deal.

[Chris Oswald]

I am starting to very seriously discuss my first deal and I want to make sure I am not getting into a bad deal or over my head. Was looking to start with a fix and flip and use returns for a down payment on a multifamily unit, but I was recently contacted by a seller looking to get rid of a a couple properties totaling 10 doors. Needless to say, this is much more than I was planning to start with and don't have the finances for the $140,000 up front costs.

The seller has offered to provide financing, but I'm yet unsure if they are willing to carry the entire note, but does want the freedom to transfer the note to another party.  I am looking for some guidance on how to structure the deal as I would like to refinance within a year to a conventional 30 year commercial mortgage.  

My current thoughts are:

1. Seller financing - 30 year at 5% - refinance when available, if necessary

2. Seller financing - 7% interest only for 12 months and then refinance

Is this (1) feasible and (2) realistic in terms of numbers.  

3. What options exist if they are only willing to do partial seller financing - will a bank loan money for the rest with no money out of my pocket?

4. Is it realistic to think the bank will refinance after 1 year.

Just looking for some mentoring for someone new to this, but quick to learn and I would be eternally grateful.

[Brie Schmidt]

@Chris Oswald - If you plan is to use seller financing only for a year - how will you get the $140k to refi it with a regular bank loan after a year?  The banks have the same requirements for a purchase as they do for a refi.  

Also note that commercial loans do not offer 30 year fixed. The loans are usually amortized over 25 years but the actual loan is for 5 years - at the end the balance is due or you must refi again