All Forum Posts by: Gregory Crane

Hey, Darnell! I don't fault you at all for putting yourself out there. It some time and lot of questions that, frankly, aren't as good as yours for me to finally understand creative finance.

To answer your question:

Not necessarily. It may be what the seller is looking to accomplish in this case, but there are tons of other scenarios. Some sellers favor a large downpayment because they're looking to retire and they own the property free and clear. Others are looking to reinvest the funds and they know exactly how much they need. It varies from person to person. My advice would be to dig into their circumstances. Build a little more rapport and figure our exactly what they're looking to achieve. Use this as your negotiating point.

Lastly, here's what we'd typically do:

1. Secure a DSCR loan for 70%.

2. Secure a PML for the 30% gap. This will be a transactional loan.

3. Close (this would be one of those funky double-close events).

4. Have the seller finance the 60% like they'd already planned to.

5. Pay your PML back their 30% plus interest.

Depending on how much interest you pay the transaction lender, you now have cash in your pocket at closing, that you can choose to reinvest in other properties.

Best of luck! Feel free to text me with any other questions:

@Darnell Robinson