Hello, I'm thinking about including a full standby seller note as part of a deal structure and I wanted to make sure I'm understanding the process correctly.
Example (numbers are completely made up, don't read into them too literally)
-$1M purchase price
-$100K in closing costs
-$100K in cash reserves
-10% full standby note.
-5% down payment (allowed since full standby note helps the loan get above 10% equity injection)
In this example, I'm guessing it would be structured as:
-$1M - $100K (seller note) = $900K
-$900K + $100K in closing costs + $100K in cash reserve = $1.1M
-5% down payment on $1.1M = $55,000.
Am I applying the down payment on the correct amount? Is that the correct way to calculate down payment when full standby is involved?
Full Standby Example/Deal Structure
![](https://55550cf88fb9105859d2-ecc273435fde99d2e690dfef78341117.ssl.cf5.rackcdn.com/img/defaultprofile.png)
by a searcher from George Washington University
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
183 views
1 comment
Sign in to see all replies.
Create an account.