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I am looking to buy some apt. buildings and I was wondering if there is a way to get into them these days with 100% financing if the price is right and the equity is there.

I don't mind hard money or??

I have been looking at some in a few states that I can pick up for pennies on the dollar most of them are priced under $100k. Great positive cash flow.

Any advice on structuring financing for something like this?


This topic has been discussed before. If you find a property w sufficient equity you may be able to incorporate DPA. Loan at 80% LTV; DPA at 20% = 100% financing.

Seller flexibility is key to any transaction.

Of course, source of seasoning; PITI requirements may come into play, but hey.....

Or look for seller carried notes. Can be done often in the commercial market.

What is a DPA? The properties I am looking to buy are foreclosures so they won't be carrying a second.

I have been told also by some mortg. brokers that lenders and not allowing owner carry seconds anymore. They want money in the deal from the owner.

Do you know of any lenders who will allow a seller cary second?

By foreclosure, do you mean bank owned properties, or pre-foreclosure?

DPA = Down Payment Assistance

As far as owner carried notes, I was referring to the owner doing the financing, no bank involved, however, owner carried seconds can be done with lender financing, not sure about getting this done with an REO.

Yes, primarily bank owned at this point but who knows what I may run accross in the future, so if you know of a way to do it pre foreclosure, I would like to hear about it.

What do you mean by Down Payment Assitance? Who is the assistance coming from?

Do a search. There was a long discussion a while back on this topic.

Down Payment Assistance comes from some lender. They loan you the down payment for one day only. Fees discussed were 15-20% of the DPA amount. The DPA and the fee had to be immediately repaid at closing to the DPA lender by the seller.

Basically, you have to find a property that supports a higher apprisal and a lender that doesn't care about the source or seasoning for the down payment. You agree with the seller on a price that nets them the desired amount after subtracting out the DPA and DPA fees. You get a loan based on this higher amount. The DPA makes up the down payment. After closing, the DPA and fees go to the DPA lender. The seller has their agreed-to amount. You have a loan for about that amount.

As to whether or not this is legitimate, there were various opinions.

Do you know of any of these lenders who offer the DPA?

Only what was discussed in this and other threads.

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