All Forum Posts by: Matthew Hoffmann

Purchase price $500,000
Property is 10 unit apartment building net rents ~$96,000 annual and NOI ~$57,000 which is accurate from 2023 proforma. I could also increase the NOI by taking over management myself.

Seller is motivated to sell because he's out of the area and trying to consolidate his holdings for easier management.  

I basically offered to pay closing costs and seller to finance the downpayment.  The income from the property more than covers the bank financed mortgage and the repayment of the down payment to the seller which I proposed to make monthly payments on. 

Is this such a bad deal? The 80% of purchase price from the bank clears the sellers note and puts the remaining equity in his pocket.

I appreciate the questions.  So I decided to do a letter of intent outlining the deal I would like.  Bank financing the purchase price and seller financing the down payment.  I have been told that many financial institutions don't approve seller financing a second mortgage for the down payment.  How would I over come a financial institution that has problem with some one in second position?

Admittedly I am new to this and I haven't written a creative offer before.  I have a deal I have been negotiating but they asked for what I'm thinking in writing.  Can anyone help me or point me in the direction of resources for writing a creative commercial offer?