@Mark BrownJust really quick, it should be 50 (2% rule), not 60.If 11/26 are occupied, you can make a STRONG argument to counter at a fraction the asking price.  

They had no interest in passing those deals on to me because they'd make a fraction of the amount of money.

You can also ask another person to loan on another note for the same property, in second position, then third position, etc.Some states, like CA, but not all of them, allow a note to be fractionalized as long as it's originated by a mortgage broker.

If you decide to use a 203k loan, 3.5% down payment is a FRACTION of what you actually have to spend to close the loan.

Holders of fractionalized interests in the same deed of trust share lien priority rights as to other junior or senior lien holders, but not as to each other.As "co-tenants" or holders of interests in fractionalized trust deeds, they don't necessarily have any priority (to the extent of lien priority rights) over each other.  

This might only be a small fraction of what the seller wants but I don't think it is "low ball" since it is a strong offer based on what I think it is worth.  

How do you purchase a 95% fractional interest on an asset that is being sold to liquidate 100% of a super-priority lien position?

It is fine to make part of your replacement property a fractional interest in a piece of real estate as long as it is an interest in the real estate itself and not an interest in an entity that owns real estate.  

I work with a professional syndicator to complete acquisitions and offer fractional investments to qualified investors.  

He is selling it for a fraction of the price and is offering seller financing with a significant down payment and would prefer a cash deal.This is a deal I really want to close on; Is it possible to acquire the property in full with hard money and do a cash out refinance to repay the HML?