How To Buy An Apartment Complex With No Money 90%

In 2019, an investor seeking to expand their portfolio found a 12-unit apartment building in Troy, Missouri. Initially listed for $750,000, the property saw a price reduction to $725,000, eventually selling for $682,000.

The investor structured the deal without using any personal funds through a "layered" financing approach: : They secured an 80% loan from a local bank.

: Using a Hard Money Loan to cover both purchase and renovation, then refinancing into a long-term loan once the property's value has increased. Perspectives from Investors how to buy an apartment complex with no money

“We called up the private lender who was currently financing the properties... Then we pitched him the idea of us taking over the loan and purchasing the property from the current desperate owner.” Get Rich Slowly · 16 years ago

: The total financing reached $185,000 for the down payment and repairs, meaning the buyer walked away with a multi-unit asset using zero personal dollars . Common "No Money Down" Strategies In 2019, an investor seeking to expand their

: You provide the "sweat equity" (finding and managing the deal) while a partner provides 100% of the capital. Profits and equity are then split based on the agreement.

: They obtained a separate loan from a private lender to cover the remaining 20% down payment and additional funds for property improvements. : Using a Hard Money Loan to cover

Buying an apartment complex with no money out of pocket is typically achieved through "creative financing," where you leverage either the seller's equity or an external partner's capital instead of your own savings. A Success Story: The 12-Unit Acquisition