How can I structure this deal?

[Account Closed]

I have a motivated seller who is willing to sell me their 24 unit apartment building. Sales price is 950,000 and the buildings value is just over 1,000,000. The seller is also willing to finance 20% of the purchase price.

Now this is my first time working a deal with seller financing and my local banks dont seem to understand or be too open to the idea. I basically thought that a bank would lend me a first mortgage for 80% and would consider the seller 2nd of 20% my downpayment.

However after talking with a few mortgage brokers they suggested it would be easier to get a better loan with better rates if I brought the seller on as an equity partner and the seller provides the downpayment of 190,000 and when we close she gets 950,000 and I owned 80% she would own 20%. Then I would slowly buy her out on the side for her 190,000 (20%) that she still has into the property.

Does anyone have experience with a situation like this? How could I structure this deal so that I can buy a great apartment building and only put a little of my own cash into the deal? Also if anyone knows of any good lenders who are open to this type of deal and offer competitive rates and terms please let me know.

Any help would be appreciated. Thanks

Brady

[Brian Levredge]

More importantly than any of that, is this a good deal? Just because you may be getting seller assisted financing does not mean you should buy it. What are the expenses? Who pays utilities, and on and on? I generally don't think it's a good idea to buy a building using 100% debt unless you are getting it for a song. If all your cash flow is going to repay the down payment for a period of time, then you are really on the hook for vacancies and maintenance.