Let’s say I find a partner who agrees to do this deal with me. He puts down the 25% required down payment. We seek financing for the 75%. Now, since I got the deal and executed it I should get some percentage of the equity. My question is how much should I ask the partner to give me in equity.
I have identified a commercial property and the seller is ready to carry a second mortgage of upto 25%. The selling price is over 3 million. Will a lender be willing to finance such a deal? Or would the lender need me (the buyer) to put any money down? What kind of rates should I expect? I would like to go for a 15 to 20 year fixed mortgage.
They will always want at least 5% of your own funds/collateral into the deal and that’s going full doc. And if you have to go stated than your looking at at least 10% down.
Yeah. Your going to need to put 5% of your own ‘skin’ into the deal. Does not matter where the money comes from i.e, unsecured line of credit, cash, credit card, personal loan, home equity line, etc…But you need to have 5% in.
Thanks Zach and Patrick. That means I have following options:
Get my part of the downpayment (5% to 10%) from a hard money lender and ask the seller to carry the rest of the 25% required for down payment. Is this possible? Or does the hard money lender require some security?
Find an investor who can provide the down payment and do an equity sharing with him. So lets say, I find someone who can put down the 25%. Is it reasonable to ask for a 5% equity? Is this approach practical?
Any other ideas how I can pull this deal together without having to put any money down? Thanks for all your help.