How does owner financing work for purchase of apartment buildings?
Feb 06, 2010
in
Commercial Mortgage FAQ
I’ve heard of techniques like closing on the day rent is due so the rent income on the property can be used as downpayment, but wouldnt this limit your choice of an apartment building in terms of price(Ex; purchase price: ,000,000 net Income: ,000 20% down: 0,000) and how much it makes a month? or does this really call for more negotiation on the buyers part for a smaller downpayment? thanks for any input
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One comment
Anthony on February 6, 2010 at 9:10 pm
I bought apartment houses in Brooklyn and I could always work out a deal with the owner . Like lets say the price is $ 100,000 and the owner wanted 20% down I would talk them into taking a mortgage say of 60,000 and give 20,000 at closing and increments every six months or so to make up the other $ 20,000 . However you have to do your home work to make sure there is enough cash flow to make these payments .