This is the most common way to get a hundred percent financing. This is where the current owner agrees to finance all or some of the purchase price. If it’s just some, you can get the remaining amount from Cogo Capital or another local private lender in your market. If you have the financial or credit wherewithal, you could also go as far as getting conventional financing.
Common owner financing is where the principal will be paid at a later date, which is called a deferment. You can also defer the interest and stack all of the debt at the end where an exit strategy will occur. That exit strategy can be the sale of the asset or a refinance of the asset with either conven- tional financing or a new private money loan. We actually see this happen a lot in Cogo.