Is It Weird To Ask Seller To Pay Closing Costs?
I'm looking at some apartments that I may be able to buy. I've done the numbers, and these apartments should cash flow around $1500/mo. I have no money to put down, but the seller is willing to carry 10%. I know that there are lenders out there that will loan the 90%, and I intend to find them! 
In fact, I may have already found one. The problem is that I don't have money for closing costs! What percentage of the loan amount do closing costs tend to come to for commercial properties? I know it is not uncommon when buying ones own home to ask the seller to pay closing costs, even if you have to increase the price of the house in the contract, but is it ever done with apartments? Or would I be the first one to do this? I'm determined to do this and not allow my lack of finances to stop me, especially now that I have a good deal staring me in the face.
Candace[ Edited by newcreation on Date 06/27/2004 ]
Anything is possible, all you have to negotiate. Good luck!
It is always done. Every facet of the deal is negotiable, and closing costs are usually negoiated after the buy price. Your closing costs can be determined by the person making your loan. Ask them for a break down of what needs to be paid at closing, and then go to the seller and have him either pay it outright, raise the price to accomodate it, or worse case scenario incorporate it into your second loan.
Good Luck,
Kyle
Candace,
Have your mortgage broker do a good faith estimate of closing costs and ask the seller to pay. You may have to increase your offer for the property a touch (couple thousand $'s or so) to get them to go for it but that is OK. It may only increase your mortgage payment a few bucks a month and if you are sufficiantly cash flow positive, that is no problem.
Chris A.