Apartments... buy with no cash or credit...HOW?

How do I buy apartments with no cash or credit? I only have a residential background.

Thanks! :biggrin

Have the seller do the financing, would be one way that pops into mind. You don’t pay any money up front - if the seller agrees - but you’ll be paying monthly payments to the seller.
Another idea is to have someone else partner with you to purchase the property, but you be the property manager, i.e. the day-to-day duties. Then you figure out how to divvy up the rental income between you two. When you both resell the property later on, you divide up the profits from selling.

Do a Master Lease.

If you have no money and bad (or no) credit, buying rentals can rapidly turn into a nightmare. While it’s certainly true that you can BUY a property with no money and bad credit, it is nearly impossible to run a business without money and/or credit.

There are 168 hours in a week. That’s more than enough time to work two full time jobs and still have over half of the week left for sleep. I would strongly suggest working hard to build up some cash and fix/build your credit BEFORE you buy any rentals.

Good Luck,


He just wants them all to himself. :biggrin

I will agree though, that you need money for repairs, and any extra costs that the leases or insurance wont cover.

I am working on my first one and learning about the “extra” costs. Owner financed though.

Please explain a “master lease”


If you have no cash and no credit you are either a bad person or a crook. If you owe and you don’t pay then you should have the cash. If you pay then you don’t have cash but your credit should be ok. So if you don’t have cash or credit you must be drinking up your money.

What I always suggest to people that have a problem figuring out how to pay their bills is to put all their bills on the kitchen table next to your computer. Go to the website for each one and sign up for automatic payment. That way you will never have another past due bill. You may not have any cash, but your credit will be smoki’n.

He didnt say bad credit, just no credit. No bills and no assets can mean no credit.

Sorry, I read fast and usually jump to conclusions. I guess that is the definition of a jerk.

I didnt have credit until mid 20s when I finally got a credit card. I prob had a little but hardly enough for even a car.

This is not to you Brian06 or anybody in particular. The way we look at things sometime don’t help us figure out how to deal with these issues. Credit is one of those issues. Credit is like a woman. Saying a woman is pretty or ugly does not help you figure out which one you want to marry because it is subjective. You have to make it objective so you can quantify what wife material is. With credit everybody has it. I bought my first car right out of college and the dealer said I had no credit so I looked at him and blinked until he figured out how to loan me the money so I must have had credit.

People also say that there is good credit and bad credit (like pretty woman or ugly woman). There is no such thing as good credit or bad credit. There is a credit score. What we need to do is make our score what the lender is looking for. If your score is 650 you can buy a car so your credit is good, but you can’t buy a house with no money down because you need a score of 680. So the same credit score is good and bad depending on what you want to do with it. There is not that much difference in actions that generate a 650 score and a 680 score. What you need to do is figure out what your score is and what you need and make a plan to get you there.

Another thing about apartment buildings that I learned. I dont think your personal credit score matters as much as you may think. The lender wants to see proof of what the property generates so it knows the loan will be paid back. The property is generating cash flow the day you close. Unlike a house that you may be rehabbing and paying all the expenses on for the time you own it.

Is 781 a good enough credit score to get into the business? Kind of a rhetorical question really b/c my brother and I are getting into the business and we’re going to be relying solely on business lines of credit at first. We’ll be wholesaling our first few deals to build up some cash reserves. I was just wondering if my score is good enough to have a decent start.

That’s the biggest bunch of garbage I have heard!
Let’s see: recent college grad comes to mind. (no money, no credit)
Recently divorced and paying out the “you know what” to repay unpaid loans the debeat didn’t pay is another. (no money, bad credit)
Just my thoughts.

Is 781 a good enough credit score to get into the business?


If you have no cash and no credit you are either a bad person or a crook.

Sometimes, Blue, I do wish that you’d think more and type less.

Beside, recent grads and divorces that have already been mentioned, let’s add:

Major medical incident. That could be no/not enough insurance to cover or major bodily damage requiring re-coup time thus limiting income.

Job loss

Major life event: examples would include such things as house burning down, total car loss (wreck), employment pay cut, Identity theft. Many, many more.

There are alot of people with either no cash or no (or bad) credit that are not “bad” people or crooks. And there are alot of people out there that have great credit that are BOTH.


When I first got out of college I guess I had no credit but I could still do what I had to do so I must have had come kind of credit. I was able to buy a car. (maybe it was because I was making a lot of money…money or credit again) So that recent grad thing is a bunch of hog wash.

I am sorry I should have explained better. If you want to use information to manage what you are trying to do you can’t manage for the exceptions. For example you don’t build doors for people that are taller than 6’8" tall. There are plenty of them, but there are not enough of them to make doors with 7’ openings. Everybody says that good things happen to bad people. That is the smokescreen that crooks hide behind. You can’t afford to run your business hoping that the signs of being a crook are some kind of exception. When DNA proves a guy in jail for 16 years is innocent you must run around saying that jail is full of people wrongly convicted. When actually for every person found to be wrongly convicted by DNA 65,000 people are found guilty based by DNA.

If you are going to ignore the credit reports then don’t spend the money to order them. Either learn how statistics work or don’t waste your money on them. In your example you use job loss, medical expense or divorce I have been out of a job before and I paid my bills until I got a new job. I equate them to drinking up or gambling the money they owe. They chose to spend the money on something other than their bills. The net effect is the same. I (and the bank) will not loan you the money. You can feel sorry for them and people come to church and present stories to the congregation of all 5. I donate to them equally. But as far as doing business with them they are persona non grata.

All the doors in my house are 8’. I think that is standard. :biggrin

Do you hit your head on them?

All my doors are 8’…there are several “standard” sizes.


I don’t like to send the money on expensive doors for low income rentals, so I buy the 8’ doors and cut them in half. Do the tenants bang their heads? I don’t know, I don’t live there!!!