Owner Carry-backs - Posted by Tom James

Posted by garrison on March 09, 2002 at 22:48:17:

i was in a similar situation not to long ago and what worked for me was as opposed to the deal being “seller-financed” i gave the seller a promissary note saying i would give him $25k at closing thus the contract said that i gave the seller a 25k deposit, the bank viewed this as a 25k deposit which was about 15% of the purchase price, when closing came and went we did additional loan documents in which the seller financed a second mortgage for $25k.

my thoughts were this: if a lender doesnt care if you take a second mortgage out on the property at a later date as long as they remain in the 1st positon, i might as well be financed by the seller, it just took a little creativity to get around the red ink…

good luck


Owner Carry-backs - Posted by Tom James

Posted by Tom James on March 09, 2002 at 02:40:56:

I am trying to buy apartment buildings with as little cash out-of-pocket as possible. Thus far the only way I have been able to get this done has been to get the seller to take back a second mortgage on one of my other properties. The two banks I have been dealing with will not allow me to get owner financing on the property. They want me to have a substantial amount of cash in the property. I have no problem obtaining conventional first posistions (I have excellent credit and cash on hand). But, I can make my money go further by minimizing cash out of pocket on each deal. Any suggestions how I can get apartment deals so that I am looking at 0-10% down? (I live in southern Illinois).


Re: Owner Carry-backs - Posted by Terry(IN)

Posted by Terry(IN) on March 10, 2002 at 12:50:04:

If you could handle 5% down, email me with the specifics on your deals.