IS THIS WRIGHT? - Posted by cory

Posted by Les on July 24, 2003 at 10:12:03:


Commercial lenders limit how much of a second mortgage they will permit, and typically that’s a 90% combined LTV. Depending upon your credit and the specifics of the deal, some may permit up to 95% CLTV. They all want to see that the buyer has some cash in the deal. Otherwise you need to consider an equity participant.

IS THIS WRIGHT? - Posted by cory

Posted by cory on July 23, 2003 at 16:23:47:

Just a quick question…There are more spec but wondering about this…5 million for this business…I need 25 % down wich is 1,250,000.00…If I ask the seller to a second or note of 15% of the down payment over 5-10 years which is 1,125,000.00 that I pay so I will need 125,000.00 of my own money to buy this …Is this correct explain if i am off.

Thank you

No. - Posted by ray@lcorn

Posted by ray@lcorn on August 05, 2003 at 19:55:08:


If the seller is going to take back 15% of the $5,000,000 sales price, that’s $750,000.

To make a 25% down payment of $1,250,000, then you have to put in $500,000 of your cash.

$5,000,000 sales price
-$ 750,000 seller financing
-$ 500,000 cash down

$3,750,000 balance to be financed


15% equals 750k - Posted by Bob

Posted by Bob on July 24, 2003 at 11:15:53:

If the lender will loan 75% and the seller will take back 15% that leaves 10% owner down.
15 % is 750K not 1.125mil