All Forum Posts by: Tony Lovatto

Can someone please explain owner financing and how it is generally structured? Is it also known as ''seller carry back''? I have an idea but not sure. Is this example anywhere close

5-PLEX WITH BANK LOAN AND 30% DOWN
$100,000 asking price
$70,000 commercial loan
$30,000 down payment
8%
20 year amortization
$585 monthly mortgage (principal and interest only)

5-PLEX WITH BANK LOAN AND SELLER FINANCE DOWN PAYMENT
$100,000 asking price
$70,000 commercial loan
8%
20 year amortization
$585 monthly mortgage (to lender)
$30,000 seller finance for down payment
10% (or whatever agreed upon)
x amount of years
$x amount of payment to owner

OR

5-PLEX SELLER FINANCE 100% (or maybe like 10% percent down???)
$100,000 seller finance
10% (or whatever agreed upon)
20 yr amortization

Close or really outta wack?????

Galvin,

Pull my reins in if I'm leading too much but... As long as the property is good on all the determining factors of NCF, LTF, and DSCR and you can swing the down payment then it should be a no brainer for the lender right?

Thanks Galvin,

Thats a good explanation. I am going to try to get some more information on the property so I can better find out where it stands income wise.

anyone: For a commercial loan what is normally offered by the lender... 15, 20, 30 year?

702,

Also where is the break in number of units inorder to not have to get a commercial loan...4...?

I am not that far in yet...currently evaluating options still. Would you be able to describe to me how exactly the structure of a seller carry back works?

:pup:

Hey all, I am looking into acquiring a 5 plex. Is there any reason that I will be limited to a certain type of loan just based on the property being a 5 plex? If so will it be the typical 20% down? I'm looking for creative financing because I only have $10k in liquid. I dont want to pull cash from my primary mortgage. I've thought about seeing if the seller would do a carry back but not sure how that all works.

Asking $100k

Anyway... couldn't I (in theory) put down $20k finance $80k and after transfer is complete refi to get some cash back out?