It is very tough for sellers to find buyers in the current commercial real estate market. It is even tougher for an interested buyer to obtain financing in this historically tight credit market. Boardwalk Property Holdings, LLC may be willing to buy your property if you sell it with no immediate down payment. We will pay the buyer’s usual portion of the closing costs and/or any loan assumption fees, and we can include the selling agent’s fee in the payment schedule detailed below. If you need a certain small amount of cash into the deal, and the overall deal seems too good for us to pass, we can accommodate you.

ALL CASH FLOW WILL GO TO YOU: We don’t need the income from your property, so we can pay you every dollar of positive cash flow.  After paying the regular monthly mortgage payments on the first and second loans, every extra dollar of cash flow would go toward reducing the second mortgage’s principal until it is paid off. At that point, we would seek to refinance the property with a traditional third party, so that you would be totally cashed out. You will receive a detailed income & expense report each month with your payment showing that you are receiving all of the cash flow from the property.

HIGHER SALES PRICE: In a deal such as this, we are not looking to negotiate very much on price.  As long as the rest of the numbers work out, in many cases, you will get your full asking price.

FLEXIBLE FINANCING TERMS: This can be seller financed, an assumption of an existing loan, or even a lease with an option to purchase once the second mortgage is paid down. Here is an example of how it could be structured:

Purchase price: $5,000,000

First Mortgage: $3,500,000 (75% LTV, 6% interest only)

Second Mortgage: $1,500,00 (25% LTV, 7% interest)

10% CAP rate annual cash flow: $500,000

Annual interest on first mortgage: $210,000

Annual principal & Interest on second mortgage: $290,000

In this example, the second mortgage would be paid off in under 7 years, but it is possible that a third party refinance could happen sooner.

FLEXIBLE PROPERTY TYPES/LOCATIONS/PRICE RANGES: Because the value, to us, of this type of deal, is in the financing, it can be almost any type of property, in almost any location, at almost any price level.  As long as the income is sufficient to pay the mortgage payments each month, we would like to consider your property.

If you are selling a property that you would like us to consider purchasing with no immediate down payment, please Contact Us.