No money down apartment buildings


Is it really possible to get a seller to finance the purchase of their apartment building 100%? I am interested in no money down commercial properties but don’t want to have to find private lenders to fund my deals and I certainly don’t have 20% to put into a big building. Any insights or techniques would be greatly appreciated. Thank you.



Yes, it is certainly possible to buy apartment buildings no money down. I have bought several of them this way. However, I have found that as the buildings get larger, the owners become more sophistocated and wealthier and therefore it is harder to find desperate sellers.


Thanks Mike! When you say you have purchased apartment buildings with no money down is that through 100% seller financing? or other means of covering a down payment (private lenders).

I would assume this is a bit risky. Good for you for pulling it off!



I have never used a private lender. I have bought properties with owner financing, lease option, and subject to the existing financing. I have also gotten 100% with bank financing by purchasing at a big discount and then borrowing less than 70% of the appraised value (using the bank’s appraiser).


Without being fancy, the only real way to get 100% financing is through a HML. That is even difficult. 100% through anyone other then a HML is reserved for those who are well established and have plenty of money. Even for those who are well established will be hard pressed to find lenders that will do 100% on commercial. HML will want you to buy at 60% of the ARV, this is very difficult to do with commercial. So your best option maybe creative financing.

Here is a way I presented to one seller. I told him that I will buy his 6-plex using 100% seller financing. Then in six months I will refinance and pay him all his money through the refy. Refinancing can easily be done with 100% financing as long as you have equity.

Yes there are a few ways to do this but it does not include 100 percent Hard Money Loans. Big Hard Money Lenders (excluding rehab lenders) will lend up to 75 percent of the purchase price or appraised value; which ever one is lower.

The first step to do any deal would be to obviously find the property under value, then agree on a sales price through letters of intent; no sales contracts. From there you would want to get the building appraised (you need to be buying under 65 percent of the appraised value). Theres your start see if you can figure out where Im going from here and PM if you need help.

A few other options would be to get the property quit deeded in your name and then re-finance out using a Hard Money Lender in a few days. As long as you have a cooperative seller the possibilities are endless just make sure you don’t get locked into any sales contract until you have figured out your strategy.

  1. HML - Will require the ARV to be 65% or less. (65% includes purchase, repairs and closing costs).
  2. Seller finance with a refy in 6 months.
  3. Private Bank - If you are well established and know the President of a bank, you “might” be able to get 100%
  4. Lease option
  5. Assumable loans

Any other creative ideas for sonriffic? 6. ?

6). Quick Deed the Title and Re-finance
7). Get a 1st and second with a seller 10%
8). Use the appraised value for the purchase price and get credit at closing
9). Mezzanine Loan
10). Cross Collateral

  1. Sub-2
  2. Owner Financing
  3. Land Contract (also called Contract for Deed)

I would not use a HML lender for a rental because the points and ridiculously high interest will kill the cash flow.


A HML can open doors other lenders close. But they get paid for taking on the risk of lending $1,000,000 with zero down to an investor with $100 in the bank. The 6% in points and the fact you have to refy in a few months is the only draw back. The interest rate is not important because you only pay that for a few months. It’s a big deal to have a lender give you a $400,000 loan, plus $200,000 for repairs, plus $40,000 for closing costs. Only those who can’t get a normal loan should use a HML.

Options 7 & 8 are probably not valid for zero down.