Posted by Sean on October 30, 2003 at 11:28:17:
Well that depends on the seller, if they are looking to cash out, could be interesting… of course to cash out they have to find a buyer who for the most part must have 20-25% cash to put down… as 100% financing on investment property is not impossible to find, but its not typical either…
I have found thus far multi unit owners are generally a little more flexible, so maybe you can make him a pay off your existing mortgage, some cash to you today and he hold a second with a 5 or 7 year baloon or something.
IE: his first is say 30k, hes asking 80k, offer him 80k, with you paying him 50k and him holding the other 30 in a 2nd with a 5 or 7 year baloon. You then go borrow 55k (50k to him plus 5k closing costs) he holds balance in the 2nd mortgage. You can adjust the numbers somewhat if he wants or needs more cash.
However its really up to the seller, and how flexible they are willing to be… he may not be flexible at all, or he may be willing to 100% owner finance… its all a matter of the sellers needs. Find out what they are and then see what you can do to help them achieve them.
Just make sure whatever you come up with the cashflow can justify it.