State Specific Question About: MASSACHUSETTS (MA)

I have the opportunity to purchase an apt building at $700,000.

1. For a bank loan - what would I need for a downpayment

2. What are the typical terms

The Seller might be interesting in financing some or all of it.

1. How would you structure(terms etc) Seller Financing an offer?

TY

First see if the seller will finance all of it If so, no need for a bank loan.

If not, bank will require seller to be in second position.

Typically, banks would want about 20 percent down. That may vary depending on your experience level. Ask around to several banks. If you have experience in running multi unit projects, they may cut you a better deal.

As an idea, why not check with lenders who buy notes. Perhaps, if you find one that will work with you, have seller create TWO notes, a first and a second. Then at the closing, the investor buys the first note or possibly both. Or use two investors. That could cash out the seller if they want to cash out.

Regarding terms:

A bank might ask 20 percent down, around 7 percent interest, 20year amortization with a 5 year balloon.

It really varies by region, your experience level, property condition and more. You need to shop around for details in your area.

Terms with a seller carrying financing can be anything you agree on.

If you want to sell the note to cash out the seller, the note buyer will want certain minimum terms (much like a bank) to protect themselves. Any deviation from their terms will make them lower the offer for the note or not accept it at all. Best to talk to a few BEFORE you write the note, so you will know the details.