Will banks allow a full owner carried 2nd for no down payment?

[Aaron Barrett]

There is a commercial property for sale in my area that the owner stated he would be willing to do a second mortgage on. He is asking $255k. If he is willing to do the full 20% so I don’t have to put any money down will banks usually sign off on this? I can put money in the deal but I’d rather not if I have that option.

[Marty True]

My experience, from conventional lenders to hard money (commercial), is that finding a lender that will let you acquire with $0 or 0% of your own money is nearly impossible. I've had numerous deals where the seller is offering more than enough financing to cover the 20-30% needed as a "down payment" however lenders typically come back with at least a 10% requirement.