OfflineI am purchasing a 7 units property, the numbers are;
Total purchase price : 267k
Appraisal for 1 st mortgage come at: 205k
Seller is willing to carry second as an investor for the diffference 45k for 36 months @ 9%.
I will come up with 17k.
However the seller want me to present the offer and tell him how is money will be guarantee. he wants a personal guarantee from me.
Help me structure this transaction for the seller please.
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If you want to structure the deal to the benefit of you as the buyer and the seller, my best advice to you is to call a real estate attorney. He or she will draw up the necessary documents to protect the two of you in this multi-family purchase.
Why would you want to pay $62,000 more than the property is worth?
Like Simon states above - make sure you have a good attorney set it up for now. Also make sure the bank holding the 1st will allow you to have a 2nd. Since it's a 7 unit, it will be commercial financing, they'll typically allow it. But be sure to check.
Keep us posted and good luck!
- Tom