Buying an Apartment Building

[Bobby Smith]

Hello everyone.. When your purchasing an apartment building. What is the percentage amount that banks like to see , as your down payment ? Also can you have that down payment financed ? What banks should you approach for your apartment financing ?

Can you truly buy an apartment building with no cash other than closing cost ?

I live in the state of Michigan

[Courtney M.]

Hi Bobby, with an apartment building, a bank is primarily lending on the strength of the asset, however your investor experience will be considered. Do you currently have any investment properties?

For any investment, I'd start with local banks. Ask for referrals from the people you may be working with, like your broker.

It's highly unlikely you will be able to buy an apartment building with no money down. It's highly unlikely you will be able to buy an single-family house with no money down, too. Financial institutions like to see some skin in the game. The exception is either working with a private money lender (but likely you're paying points/interest to that lender) or owner financing. However, if you don't have experience with apartment investing, you're unlikely to find an owner willing to finance your deal.