Monday, January 28, 2013

Multifamily Financing - The Seller Carry-back via Multifamily Insight Blog

Seller carry-back financing. So simple, so eloquent. So screwed up so often. This article will discuss seller carry-back from the sell side perspective. Most buyers are of the opinion that obtaining a seller carry-back is a good thing. Most sellers are confused on the matter thus refrain from its’ consideration (as a confused mind always says no- to everything).

I recently drove by a national burger chain advertising their latest fare: a Turkey Jalepeno Burger. Now that’s creative! Not very appetizing in my book, but creative. No doubt this offering is the product of hundreds of hours of market research and taste test. It was probably first offered in just a few stores. If it has legs the store expansion will continue.

Mortgage loan products are developed in a similar way. If you recall, CMBS (Commercial Mortgage Backed Securities) is a relatively new mortgage product. The first tranche was not a billion dollar portfolio, more likely one hundred million, then tinkered with until deemed viable to sell to institutional investors.

Read more...Multifamily Financing - The Seller Carry-back | Multifamily Insight Blog

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