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
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
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.