Typical Down Payment Requirements

[Jake Thompson]

So I've been doing a lot of reading regarding getting into buying apartment complexes and am eager to do my first commercial deal. I've heard a lot about getting into deals with little money down using creative financing. When I approached a broker about seller financing with a small down payment he basically laughed and told me that it won't happen in San Diego. My question is, are you guys seeing these kind of deals? And if so, are they in less desirable markets? How would you suggest trying to get a seller to agree to low/no money down? I know a lot of people do syndication's to fund the down payment, however with no experience I don't feel comfortable asking investors to trust me with their money. Any suggestions?

[Anthony Chara]

First thing Jacob, NEVER tell a broker on your first call or two that you're looking for Seller Financing. What the broker hears is, "Hi, I have no money. Do you know any Sellers that will give me their property?" Also, if they can't figure out how their commission will get paid, they will generally not be open to discussing Seller Financing on your behalf with the Seller. Yes, these deals can get done in every market, but they generally work better in non-hot markets and on smaller properties. They also work better after you've created a rapport with the Seller directly.