It's meant for gap financing, so you can't compare it to a DSCR or some other kind of first position financing.  

Additionally, it provides investors with the opportunity to add a unit on a property they already own, simplifying management since the new unit is in the same location.Finding a vacant lot is both expensive and difficult, so the ability to build, subdivide, and create new development opportunities can make financing easier.

Traditional MLS How did you finance this deal?

I have not done it myself, but have helped some people with financing.

People have to remember that the seller finance space fills the gaps that the banks leave behind. 

Mortgage lenders will qualify you for a higher purchase amount for multis than they would on a single, because they will count the rent you will be making on the other units as additional qualifying income for your loan application.

A) Landlord denies application from tenant with ESA.

.🔹 Creative Financing – Traditional loans don’t always work for distressed properties.

They develop, they build, they finance, they property manage, they will have HAO, cleaning crew etc. etc. etc. so the subsidiary companies make money every step of the way.From investor perspective: The investor pay $15 K to reserve the right to purchase 25 multiplex over the year of next 5 years. 5 each year.

Very few allow any subordinate financing below their note but I do have ONE that allows 90% CLTV (they loan 75% and allow you to secure a 15% seller carryback as long as you come in with 10%).