Answers (2)
- JeFreda Brown
- Contributions:2
I'm a Realtor, and I work with private investors who provide private funding for commercial real estate projects anywhere in the US. The minimum amount they lend is $250K. With it being private funding, their is more flexibility for creative financing.
- Seth Captain, "CaptainSeth"
- Contributions:224
Working with multi units and multi-families in Chicago, I have run against this issue.
You're going to want to check with some local banks, specifically banks who are not selling to Fannie or Freddie. These banks are known as 'holding their own paper' in the mortgage world. They would consider providing the mortgage among the actual executives at the bank (they sit at a table discussing you and everything!) and determine if it's a worthwhile investment. Basically, the way banking used to be done before being taken over by large mega institutions and the government.
Another option, based on your relatively low purchase price. You normally only need 25% down for an investment property. Which means you'd need about $15k more. You seem to already have close to that. If the building is in solid shape, I wouldn't fuss with the owner financing portion which, in my opinion, should be used for properties where the buyer has limited cash AND knows they can re-fi out of it in a few years (which is the general limit for most owner financed deals).
Good luck.
You're going to want to check with some local banks, specifically banks who are not selling to Fannie or Freddie. These banks are known as 'holding their own paper' in the mortgage world. They would consider providing the mortgage among the actual executives at the bank (they sit at a table discussing you and everything!) and determine if it's a worthwhile investment. Basically, the way banking used to be done before being taken over by large mega institutions and the government.
Another option, based on your relatively low purchase price. You normally only need 25% down for an investment property. Which means you'd need about $15k more. You seem to already have close to that. If the building is in solid shape, I wouldn't fuss with the owner financing portion which, in my opinion, should be used for properties where the buyer has limited cash AND knows they can re-fi out of it in a few years (which is the general limit for most owner financed deals).
Good luck.
question about multi-family financing
Seller agreed to pay 10k concessions (closing, prepay, etc)
Also, seller agreed to finance 15% in addition to our 15% for a total of 30% down. (seller owns home outright but will only owner finance a portion)
Questions is, will any bank go for this type of deal the way it is structured, as seller would have a 2nd mortgage for the 15% they financed. (30 yr amort, 10 yr balloon)
It's a no-brainer deal, and it would leave me plenty of cash left over (10k+) for any upcoming contingency. Thoughts?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.