1.2M 5 Plex - How to finance with $0 Down?

3 Replies

I am looking at a 5 Plex for $1.2M.  I could easily live in the only vacant unit, all the others rent for $2,300-2,500.

I do NOT have any money to put down.  What are some creative ways to make a deal such as this, or like this in the future.  Could owner financing work?  Am I just SOL?

You have to look at this from a business position....

Can you repay the loan, do you have the means to do so? This means experience, cash, assets, a job etc... If not why would anyone want to do business with you if you aren't able to repay the loan?

Now a bank will have cut and dry rules... so either partner with someone and bring something of value. But if you go to an owner you must find a way to provide value to make your proposal more attractive then someone's else.

Know that anything over 4 units = commercial... different rules and different buyers.

I'd just like to brainstorm what WOULD I need to do/change to be able to do a deal like this.  From a business perspective there is not much to go from, I have little experience and little capitol.  However, If I don't make it, then they get the property again. win win?   It has been on the market for some time and has been dropping in price just the same.  I figured my interest may at least spark a conversation.  

If I were to bring on a partner, id say what I bring to the table is all the sweat equity, I do the property management, fixes, rehab and Id live onsite.  While the other person just brings the money to the table.  Are there people who would be willing to do a deal such as that?
@Matt K.

I'm telling you how you would...

It could be: Hey I have no money right now BUT.... insert amazing track record. This proves you can handle a deal like this etc etc. 

Or I don't have the experience, BUT..... i have the money, net worth etc etc. Key here is you have your own money in this, nearly everyone will want this. Banks will require this.

Now for a partner, that's a fine pitch... but do you know that person who is looking for those things? Probably, not..... so start networking. That very much may work for someone but you need to find that person. But you'd likely have to overcome the objection of why they should let you in on the equity site and not just let you live onsite and perform those functions as a job...

Time is money... and if you don't have money you should have the time.