A proprietor wanted to sell his center and retire. He said that his tenant was interested in buying but didn’t have much money.
Banks want to see “skin in the game” through a reasonable down payment. This buyer had been leasing the building for more than ten years but invested most of his cash flow into new equipment and tenant improvements.
The landlord and tenant had a good long-term relationship, so we were able to get the landlord to take a promissory note in second position on the assets with terms that allowed the bank to accept it as the down payment.