One of the biggest challenges in real estate, especially starting out, is getting access to capital. Not just for purchasing rea estate deals, but also to expand your business and pay operational expenses along the journey to becoming a full time real estate investor.

Owner Financing is a method for purchasing real estate in which the Seller finances a portion of the purchase to the Buyer, typically in lieu of a bank loan, with similar terms except that Owner Financing typically comes with a shorter term length. Again, this video applies to all real estate asset classes, but we are in the commercial multifamily space, so a common structure for us is a 10-30% down payment, 3-6% interest rate, 1-5 year term, with a balloon payment at the end, at which point we refinance with a commercial loan after having had some time to stabilize and add value to the property.