Buying Commercial with No Money Down
Can you imagine buying a 220 unit apartment complex with no money down. Which produces 1,655,000,00 income
Well it's being done in todays market. The banks are making it easier to walk right in to take over the existing mortgage. What makes it so fantastic is it's also common for the owner to carry back up to 7.5% sometimes even more. This helps you with your down payment.. With a little negotiating skill, can you see the cashflow coming in?
The deals are everywhere. Talk to distressed property owners, and take action today.
Comments (13)
I will like to take over an apartment complex from an owner who is retiring and paying him from every months profit. my problem I have a bad credit and no money to down payment, but with a lot of williness to a hard work my 4 kids an I
, about 12 years ago
I don't believe any 'guru' that won't provide addresses of the deals that he's done this year. There's no reason they wouldn't unless they're lying.
, about 12 years ago
That would be wonderful. To find 100% financing money producing property. I would hear from 1% of sales value for anybody could find me such deals. With up-to-date properties. Apartment complexes/warehouse/office complexes and condo/mobile home parks/Mini storage unit/assisted-living faculties. If they would go to close. I would even offer cash rewards and finder fees If anybody can do this. Please call me 419-957-0883 my name is Rickey Schroeder
Rickey Schroeder, about 13 years ago
so maybe you could give specifics on a deal you've completed like this? we'd all love to hear it..thanks
Account Closed, about 13 years ago
here is a bit more info. Building is 1902 4-studio $495 = $1980 29 1BD $525 = $15,225 8 2BD $575 = $4,600 1 3BD $695 = $695 42 units $22,500 X 12= $270,000.00/yr Years 2006-2009 Year 2006 2007 2008 2009 Income Rents Received $235,112.00 $239,210.00 $250,800.00 $255,000.00 Expenses Advertising $780.00 $650.00 $500.00 $600.00 Insurance $13,500.00 $14,983.00 $15,575.00 $13,500.00 + Legal/Prof. Serv. $1,450.00 $1,700.00 $1,800.00 $1,900.00 Repairs/Labor $10,119.00 $9,736.00 $10,008.00 $11,100.00 Supplies/Material $5,502.00 $7,847.00 $8,450.00 $8,800.00 Taxes $20,505.00 $21,166.00 $34,050.00 $40,000.00 ++ Utilities $55,180.00 $54,750.00 $50,350.00 $49,100.00 New Furnace 2007 Management 7% of Gross Income $16,958.00 $16,744.00 $17,206.00 $17,850.00 Total Expenses $123,994.00 $127,576.00 $137,939.00 $142,950.00 Net Before Debt $111,118.00 $111,634.00 $112,861.00 $112,050.00 Assumable Mortgage @ 7.1% w/30 yr terms. $4,725/ month mortgage payment. Owner bought property in 2005 for $890,000 Put in over $100,000 in improvements: New Gas Furnace $22,000.00 Las Vegas Style Security System-33 cameras & computer system with links to owner and managers home computers $24,000.00 Re-roof of building roofs $14,000.00 Update hallways & entrance ways $8,000.00 Up date of 75% apartments $18,500.00 New Sidewalks & Driveway Repair $10,000.00 New Hot-water Holding Tank $4,000.00 Laundry Room Update $3,000.00 Basement clean out & painting for C of O $4,000.00 Plumbing updates $4,500.00 Electronic Entry system w/tenant key-swabs & apartment speakerphones-records all entrance and exits of the building. $5,000.00
Scott Ouk, almost 14 years ago
Hi Ron, I have a commercial property that I believe is the real deal. A no-brainer if you will. It is a cash flowing property and I would love to find out more on how to obtain this deal with no money down. Tell me what your take on this please. 895K purchase price 685K assumable loan (7% 30yr amortization due in 6 yrs) Bank is in place to refinance to 6% for 30yrs when we purchase. 210K balance 30K Earnest Money 270K Gross Income 148K NOI 100% rented out (no vacancy for the last 4yrs with waiting list) 100K grant for window replacement (transferable with purchase of LLC) 4yrs of taxes shows profit of no less that 112K annually
Scott Ouk, almost 14 years ago
Thank you for all of your recent replies . First I'd like to say, so many people are searchung for the right deal out there. i have come to realize that the relationships I hane developed are more valuable than money. Obviously I know something that many of you don;t know. No offense intended. What I mean is I work by a strict list of fundamentals. Rule number One is I see myself as a problem solver, not an investor. My associates are inveators. I'm more of a generalist than a specialist. I only deal with or intend to deal with Recession Proof Property. My investors only want to deal with them in this market. What I look for is cash flowing property. With quick turn around. Apartment complexes, Storage facilities, Senior Housing, Assisted Living Complexes, and Mobile Home Parks. Each has their own criteria, but in general they all cashflow in this economy. I also look for non recourse loans in these situations when possible. With good exit strategies. My investors don't want to invest more than 50% market value. Now you may think that these properties don't exist, but I assure you they do. Understanding the foreclosure process, which I'm sure anyone on this site does, you must understand that timing is everything. Before the property goes to auction we have what we know as the redemption period. In some cases what is owed is far less than what is being asked. Why not make an offer at cost, or even assume the existing loan. If what is owed is considerably less than market value and you can solve the owners problem why wouldn't your investor sign off on it. A deal is a Deal.
Ron Jackson, almost 14 years ago
Ron, Would you mind giving more details about a recent deal? Thanks.
James Ward, almost 14 years ago
I agree with Ted. I am hearing about all of these "deals" but I haven't seen any.
Alison Feliciano, almost 14 years ago
The commercial market is clearly in the early stages of at least a minor crash. Many say much more than "minor". Any details on the types and structures of the deals you are doing or seeing done would be great.
Ted Akers, almost 14 years ago
We haven't been pursuing REO's, but the banks we have talked to still want equity put in to the REO's, even if it's just for the rehab. What type of deals are you seeing?
Tod R., almost 14 years ago
Thanks for the info, Ron.
Thomas Fish, almost 14 years ago
Hi Ron. Do you have any examples of recent no money down commercial deals? Office buildings?
Jon Klaus, almost 14 years ago