seller carry back ..backs out - Posted by rod in rapid city

Posted by rod in rapid city on August 27, 2002 at 17:43:25:

I am afraid that you are right. I didnt think it was going to be easy but it did look like it was falling into place after quite a bit of research and work for the bank. Thanks for the advice…on to the next one

seller carry back …backs out - Posted by rod in rapid city

Posted by rod in rapid city on August 27, 2002 at 17:17:34:

I had a deal in the works where the owner told me that he would carry back $100,000 of the $260,000 that he was asking for a 13 unit apartment complex.After I went to the bank to start the process, the owner informed me that he would not subordinate. I had thought that he understood that he would have to unless of course I had the $160,000 cash.(Which I don’t) That is what I get for assuming.This property has a conservative cash flow of $1300 month. That was assuming a 7% first and a 9% carry back both for 15yrs. The question that I have is if anyone knows of any way that I could get this deal financed. This property has such good cash flow, cap rate etc that I hate to let it go but I dont know of any way to get 100% financing.This is my first possible deal. Any Ideas?? Thank you

Re: seller carry back …backs out - Posted by Gavin Wilkinson

Posted by Gavin Wilkinson on August 27, 2002 at 21:18:08:

Find a partner with a piece of property owned free and clear. Secure the 100,000 with the free and clear property. Then the bank will lend you 160,000 on the 260,000 property.

Or sign a contract contingent on your partner approving the project. Then go find someone with 160,000 and flip the project to him/her.

Good luck

Re: seller carry back …backs out - Posted by Nate(DC)

Posted by Nate(DC) on August 27, 2002 at 17:36:12:

I would suggest you let it go. Even if he would subordinate, the bank would almost definitely not let you do 100% CLTV especially on your first deal.

I think you thought it was easy and it turned out not to be. You will have that experience a lot. Good luck,
NT

Re: seller carry back …backs out - Posted by rod in rapid city

Posted by rod in rapid city on August 28, 2002 at 08:23:57:

Those are some good creative solutions. I dont know if I can get them done or not but I appreciate the ideas!