Curious? Is it possible to do this or what are the chances of assuming someones current mortgage? If this is possible, where would I start, are there any website that market stuff like this?
Man, wouldn't we all! Unfortunately I haven't heard of any magical website that lists, "Buy my Apartment, no money down, seller carrybacks!" From everyone that I've heard of that has got these properties two things are key:
1 - Strong Marketing. Yellow Letter Campaigns with a drip component
2 - Strong Relationships. Talking about your experience and what you do in real estate and meeting people.
welcome to the site.
With commercial loans its entirely possible the existing loan would be assumable. That's not the same as no money down. The seller may want additional cash. It would be a VERY rare property where the owner is willing to just let you take over the existing loan with no additional cash and actually have that be a good deal. Not so difficult to find one where the owner is underwater and willing to sell the property by letting the buyer assume the loan.
IMHO buying a large apartment building with no money down is a complete pipe dream. Further, even if you pull it off, owning an apartment building without have a big wad of cash in the bank (six months total rent) is a sure fire way to fail as a landlord. Cash reserves are absolutely essential to surviving in this business.
Jon Holdman, Flying Phoenix LLC
@ Troy Fisher
Thanks for that advise. I should have mentioned that, depending on the price of the property, I would be able to give the seller a down payment and look to refinance in a minimum 3 years, while paying the seller a small precentage of the rent that's collected monthly.
Mario think about it. If a seller has big cash flow coming in and a performing property they are not wanting to give up that income stream. To do that you need to come in with cash. A lot of these no money down deals were years and years ago where the cycle was stuck for multifamily.
Sellers just didn't want the headache. Be prepared today to look high and low for such a property and a broker/agent will not want to work on such a longshot. Even if you get owner finance the owner will want usually at least 10% down and pay the buyers broker the 3%. So you are looking at 13% down and closer to 20% when you factor in reserves and attorneys fees, due diligence, and closing costs.
Hope it helps.
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