Financing a Multifamily no money down

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Dan Duenas
Lender · Member since 2026 · 35 posts · 19 votes
1w

I'll give you the honest answer first, because the "no money down" idea is the most expensive myth in this business: no real lender does no-money-down multifamily purchases. Not banks, not DSCR lenders, not hard-money lenders. Anyone telling you otherwise is selling a course, not a loan.

What the "no money down" stories actually are, almost every time: (1) the seller carried a big piece AND the buyer still brought money in — lenders require skin in the game, minimum 15% down on the real investor products (DSCR goes to 85% LTV; a purchase program like my V25 is 25% down with no income or credit required); (2) the buyer pulled down payment funds from somewhere else — equity in another property, a money partner; or (3) they never purchased at all — wholesale contract flips get marketed as "no money down deals," but there's no financing involved because there's no purchase.

Creative financing IS real, it's just not "no money down": seller financing works when the seller owns free and clear and carries the note (sometimes as a second behind an institutional first — the first lender still underwrites it); subject-to, lease options, and money partnerships are all legitimate structures. The through-line is that every one of them still needs real capital or real risk taken by someone at closing.

If you're new and short on capital, the two honest paths are: partner with someone who has the down payment and split the deal, or start with strategies that don't require buying — wholesaling, bird-dogging — while you build capital. Happy to talk through what a realistic first structure looks like for you. — Dan

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  • John Adair
    OP
    Member since 2026 · 16 posts · 10 votes
    1w

    I’d love it if I could network with creative financing expert in the Flordia area Tampa

    1Reply
  • Dan Duenas
    Lender · Member since 2026 · 35 posts · 19 votes
    1w

    I'll give you the honest answer first, because the "no money down" idea is the most expensive myth in this business: no real lender does no-money-down multifamily purchases. Not banks, not DSCR lenders, not hard-money lenders. Anyone telling you otherwise is selling a course, not a loan.

    What the "no money down" stories actually are, almost every time: (1) the seller carried a big piece AND the buyer still brought money in — lenders require skin in the game, minimum 15% down on the real investor products (DSCR goes to 85% LTV; a purchase program like my V25 is 25% down with no income or credit required); (2) the buyer pulled down payment funds from somewhere else — equity in another property, a money partner; or (3) they never purchased at all — wholesale contract flips get marketed as "no money down deals," but there's no financing involved because there's no purchase.

    Creative financing IS real, it's just not "no money down": seller financing works when the seller owns free and clear and carries the note (sometimes as a second behind an institutional first — the first lender still underwrites it); subject-to, lease options, and money partnerships are all legitimate structures. The through-line is that every one of them still needs real capital or real risk taken by someone at closing.

    If you're new and short on capital, the two honest paths are: partner with someone who has the down payment and split the deal, or start with strategies that don't require buying — wholesaling, bird-dogging — while you build capital. Happy to talk through what a realistic first structure looks like for you. — Dan

    2Reply
    • John Adair
      OP
      Member since 2026 · 16 posts · 10 votes
      1w

      Well I’m in ADPI. I bought into it. I’m interested in wholesaling and bird dogging? What is that? I was told by the ADPI people we would need to have Key principle on the loan to get a nonrecourse loan. She hasn’t said yet if they supply the key principle. I’m hoping they do. Because that would mean they believed in their product.

      0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 470 posts · 188 votes
    1w

    @John Adair Creative financing is definitely possible, but it is usually more deal-specific than social media makes it sound. Common structures include seller financing, subject-to arrangements, lease options, and partnerships. They tend to work best when the seller has a particular need—such as steady income, speed, or relief from a difficult property—and the terms benefit both sides.

    The bigger question is not whether a deal can be structured creatively, but whether the numbers and risks make sense. You still need to verify title, existing loan terms, taxes, insurance, payment history, and an exit strategy. Some approaches, especially subject-to deals, can create real legal and financial risk if handled casually.

    I would start by learning one structure well, then have a real estate attorney and knowledgeable lender or tax professional review any actual deal. Creative financing can be a useful tool, but it should solve a problem—not be the reason to force a marginal deal.

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    2Reply
  • Adam Crum
    Lender · Martinsburg, WV · Member since 2026 · 5 posts · 2 votes
    1w

    I have programs for 1-2 units w/ 100% financing, not sure of anything above that but you'd still have to live in 1 unit as your primary residence. Send me a connection request if you want to chat more.

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1w

    1. It is very rare.

    2. You typically are paying a premium over the market value of the property.

    3. If you don't have significant cash and reserves to cover expenses, damages, evictions, and everything else that multifamily owners deal with, you'll end up losing the property.

    Just because you can buy something with no money down also does not mean that you should.

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  • Adam Crum
    Lender · Martinsburg, WV · Member since 2026 · 5 posts · 2 votes
    1w

    Just to confirm, I reached out to our products team and we do have an in-house DPA program that follows FHA guidelines, so you'd actually be able to do a 1-4 unit. Glad you asked that question, now I have another program in my back pocket lol. Thanks!

    1Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 693 votes
    1w

    The idea is definitely doable, but probably not the way you're thinking. One approach is to structure it as a joint venture (JV) or syndication, where you bring investors together to fund the deal while you act as the managing partner. You find the opportunity, structure the deal, manage the investment, and share the profits with your investors. Creative financing is absolutely possible, but the key is understanding how to structure it properly and protect everyone involved.

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  • Nyisha Walton
    Lender · Houston, TX · Member since 2026 · 30 posts · 6 votes
    1d

    Hi John, creative pieces happen, but almost every workable multifamily still needs real equity from somewhere. If you have a specific building under contract in Tampa, we fund investment multifamily in 30+ states and can tell you quickly what down payment and structure would actually clear.

    0Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 693 votes
    1d

    Creative financing can absolutely work, especially with multifamily. The key is creating a win-win structure.

    Sometimes that means offering above asking price in exchange for favorable seller-financing terms. The seller may benefit from a higher price, monthly income, and potentially spreading out the taxable gain, while you benefit from lower upfront cash requirements and long-term control of the property.

    Don’t focus only on price—focus on terms, cash flow, and the long-term gain for both sides. If the numbers work, a higher purchase price with better financing can be much more valuable than getting a discount and using expensive traditional debt. I recently paid 150 for a property that was only worth 120k but I've got a 4% interest on me! And I explained to them that tax benefit how they stack up!

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  • Adam Summerer
    Lender · Franklin, TN · Member since 2026 · 86 posts · 17 votes
    12h

    The closest real thing to no money down on multifamily is living in it. If you're a veteran, VA can go 0% down on up to 4 units as long as one is your primary, and FHA is 3.5% down on 2-4 units with the same live-in rule. Past 4 units or non-owner-occupied, plan on 20-25% down plus reserves no matter how creative the structure sounds.

    0Reply
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