small apartment acquisition

[Dave Pate]

I now own my first apartment building, a 5 unit bought for cash (1031 exchange). After a rehab my property manager has it 100% occupied. Now I'm thinking bigger and looking around for another apartment building, maybe 10 to 20 units.  Financing is the thing. Putting down 20% on a commercial property (10 to 20 units) is currently beyond my reach.

How can I acquire an apartment building with 10% or less down payment? I have not talked to hard money lenders yet. I have great credit, decent salary, and 3 rental properties with no mortgages. I would appreciate suggestions from you real estate pros!

[Darren Budahn]

You can possibly have the seller carryback 10%, so you would not need as much cash to close.  IE. Bank loans 80%, 10% seller carryback, 10% your cash. You would also need to find a lender who would allow this.