What Good Is An Owner Carry
What good does it do you to negotitate an owner carry at say 20% of the purchase price if banks want to see your own money in a purchase? WOuldnt they still want to see something like 10% of your own money?
Every situation is different.
If you want a new first, a 70% LTV, 20% owner second and a 10% down payment is pretty easy with reasonable credit.
If you are taking over the existing first (subject-to) and the seller will carry 20% the deal is completely different (even if the first is 80% LTV).
It comes down to cash flow, cash for a down payment and lender qualifiations. You then mix and match to get the deal done.
John
My broker right now is looking into some lenders that will do 90% LTV with 10% owner carryback. He has done it before, so I know it's possible if you shop around the lenders.