Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

What do a creative finance terms look like?

30 Oct 2022 · 1 min

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Christian Osgood explains that creative finance deals have no standard down payment since terms are fully negotiable. His company often clusters around 10% down, while syndicators typically require 20% to 60%. He cites a Tukwila 7-plex where the buyer put down just 4.5%.

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What does your guys' average deal look like in terms of down payment? It's a good question. There's no such thing in creative finance as average. Everything is completely negotiable. However, a lot of our deals seem to fall right around 10%. That for some reason seems to be the golden number for us. Where we really differ from a lot of the syndicators or other, other players in the game is people have to do these high down payments, 20, 30, 40, sometimes 60% down. If you're doing creative finance, it's completely negotiable. So you do whatever it is you can do. If you can only do 5% down on a property, and we've had that happen in our, uh, Tukwila 7-plex, we ended up doing 4.5% down because that's all we could do at the time.