Most investor funds can be repaid the same day as closing. We structure the capital stack, coordinate escrow, and ensure investor repayment so you walk into ownership with reserves and cash left over.
Below are sample opportunities where creative funding and investor capital structure can help close the transaction. We put together the offers for you and help you locate lenders, down-payment assistance, and coordinate the full funding stack so you achieve your acquisition goals.
Entrepreneurs ready to acquire commercial property using private capital, buyers with deals who need structuring help, and investors who want to scale without tying up personal cash.
Q: Is residential the same?
A: No — commercial lending permits more flexible fund sources and no seasoning rules.
Vertical diagrams so they fit. Shows pre-close + LPS retainer + reserves available at closing.
max(0, seller credit − estimated closing costs) in this calculator. This represents funds the seller credit could leave available to reimburse the buyer's company at closing — subject to lender/title approval.| Line item | Regular | Creative |
|---|---|---|
| Purchase price | $3,900,000 | $3,900,000 |
| Loan (LTV) | $2,535,000 | $2,535,000 |
| Buyer down payment | $1,365,000 | Investor funds $1,365,000 |
| Seller credit toward closing | $0 | $274,000 |
| Investor payoff at close (down + premium) | $0 | $1,501,500 |
| Buyer pre-close non-refundable (D.D.) | $33,000 | $33,000 |
| LPS Retainer Fee (non-refundable) | $10,000 | $10,000 |
| Total buyer out-of-pocket pre-close (D.D. + Retainer) | $43,000 | $43,000 |
| Buyer cash needed at close after pre-close | $1,419,500 | 0 (example) |
| Reserves for Buyer at Closing (seller credit − closing costs) | $0 | $176,500 |
| Seller net cash at closing (approx.) | $0 | $0 |
| Seller-carried second (approx.) | $0 | $0 |
This section uses NOI, cap rates and a simple rent/NOI growth assumption to show what the property could appraise for on an income approach, how it might grow under a rent-stabilized / value-add plan, and what equity you could have at exit. Loan balance is treated as roughly constant (interest-only or low amortization) for quick modeling.
Short answer: Commercial loans are underwritten to cash-flow/NOI, have different disclosure regimes, and are often exempt from many residential consumer protections (like RESPA). That means greater flexibility in seller credits, escrow instructions, and acceptable sources of funds — but also a need for stronger documentation and lender/title pre-approval.
Short answer: RESPA governs many consumer/residential loans — it requires certain disclosures and prohibits undisclosed kickbacks. Most commercial loans fall outside RESPA, so creative flows are not automatically blocked by RESPA itself. However, if the financing has a consumer element or falls under consumer-loan definitions, RESPA-like restrictions may apply.
Practical approach: Always confirm the loan program early and disclose all third-party funds to the lender and title company. Transparent documentation (investor agreements, escrow instructions) prevents regulatory issues.
Flow summary:
Must-have documents: investor funding agreement, escrow instructions referencing payoff, clear purchase contract language, and lender/title pre-approval.
Assumptions: price $3,900,000; LTV 65% (loan $2,535,000); down 35% = $1,365,000; seller credit $274,000; investor funds down $1,365,000 pre-close; investor premium 10% (payoff $1,501,500); buyer pays pre-close D.D. & retainer ~$43,000.
Why buyer cash at close = $0: investor provided the down payment; seller pays investor payoff at closing and applies seller credit to closing/reserves; loan funds plus seller payoffs settle at closing so the buyer does not need to bring additional cash at the moment of closing (buyer still paid pre-close non-refundable items earlier).
Important: This only works when lender and title accept the escrow/payoff instructions and seller agrees to the buyout; get written confirmation from both.
MAI = Member of the Appraisal Institute. MAI appraisers produce high-quality commercial valuation reports used by lenders. Lenders rely on MAI reports for complex underwriting.
Property types frequently requiring environmental due diligence: gas stations, auto repair shops, industrial/manufacturing, sites with historical industrial use, and properties near known contamination.
Why do it early: lenders often require a Phase I; if RECs are identified, a Phase II (sampling) follows. Environmental issues materially affect value, insurability, and financing terms — so identify them before closing commitments.
Typical ranges (estimate):
Obtain quotes from qualified local firms for precise budgeting.
We offer: deal modeling, drafting investor agreements and escrow instructions, lender/title coordination, ordering MAI appraisals and ESAs, and full closing coordination to ensure investor payoffs and seller credits execute properly.
Contact: Luxury Property Solutions, LLC — Phone: 866-577-5262 • Email: info@lpslama.com • Website: www.lpslama.com
