All Forum Posts by: George T.

good question @George T. I'm in a similar situation myself (negotiated 50% Seller financing on a commercial deal with 100% occupancy) and haven't quite been able to figure it out. If you find a solution, please let me know.

A lot of lenders I speak with won't consider it because I don't have any skin in the game, like many of the BP members had suggested. I was under the impression that 50% Seller financing would come off as a good thing to lenders, since it brings down the LTV% and spreads the risk.

If it's structured in this manner, should we be speaking with a specific type of lender? i.e. banks, private, hard money, equity, etc.. or will it only work if the seller is in 2nd position like @Zach Quick mentioned

@George T. This is a bank loan all day long. It should be really easy if it's 100% occupied. You'll need to have at least 20-25% equity into the deal, but a stabilized SS facility is a hot asset class right now. There are even USDA programs that will give you a 40 year amortization if it qualifies. That depends on location and can be determined very easily. Bottom line is there are several traditional financing options here that wouldn't even require a sellers note. Hope this helps!

I know M&T won't consider seller financing towards your downpayment for real estate purchases, but they do for business purchases - so if they consider this a business purchase you should be fine. My business banker is well versed in real estate - send me a message if you want his name. If you cannot use M&T then I would suggest using your contacts within the bank to get introductions to bankers at Evans, Akron, Alden, Five Star or Bank on Buffalo. The banking community is small and very interconnected in WNY so shouldn't have a problem getting connected to someone that can help.