41 Unit
Hello,
I have just signed a deal to buy a 41 unit for 600,000. The seller has agreed to a 150,000 carryback. I would like to put down less than the traditional 20% downpayment. I have not been to a lender yet ( I have good credit and do not want several banks hounding me for the loan). It has always seemed to me that you have to have 20% down. Can I use the carryback for that? The buildings are in great shape and all rented but one. The income is fantastic and it will make a great profit so I would be foolish to pass this up. Please let me know if there is any way I can get into this with no or reduced downpayment. Any replies greatly appreciated.
Studlee,
See your earlier post about this. Yes you can use the carryback as your down.
Robert
Yes, just did it myself on an 8 unit. The seller is carrying the entire 25% down payment and I am getting a true no-money-down deal. For income properties, your ROI is limitless with zero down! I'm using a small local bank for this one, but traditionally I think most banks will allow it without a problem.
Quote:
On 2004-05-21 13:52, tmpringle301 wrote:
Yes, just did it myself on an 8 unit. The seller is carrying the entire 25% down payment and I am getting a true no-money-down deal. For income properties, your ROI is limitless with zero down! I'm using a small local bank for this one, but traditionally I think most banks will allow it without a problem.
What terms do you have with the seller?
After loan payment s and paying the seller, do you still have positive cash flow?
sounds like a friendly bank. Have have run into the issue that the lender woul NOT allow a 2nd to be recorded. so the carryback wouldn't work.
41 units (at least in CA) is totally commercial financing, and you debt coverage ratio (DCR) is key.