Buyers asking for "No money down" financing!

[Belinda Lopez]

Wow - just had two potential buyers send in offers on a $500k deal (8 rental homes) where the seller was offering owner financing at 6% $150k down, 30 year amor w/a 5 year call. I've talked to several commercial and private lenders and they all said they could not match the seller's terms. I know there are some creative strategies out there but I can't imagine being able to get an individual I don't know to lend me $500k with no money down of my own!

Very different if the buyers were bringing their own financing from a bank or other lender but this just seems totally unrealistic. I mean if someone out there wants to give me a $500k loan on 8 homes with no money down and my only costs are closing costs and I'm going to be cashflowing over $3600 month, do they really think I would pass that deal onto someone else and not take it myself?!?

[Account Closed]

Originally posted by @James Tobin:

@John Jackson My read was the sellers are asking for $150k but the buyers are offering no money down...

By my math, $150 on 500 is 30% down which seems high. I'm still new to all this, but with seller financing, is this a normal percentage?

Sellers asking 30-50% down is typical with multi-units in my areas. Most sellers in these situations aren't creating paper as an investment. They are trying to move something that won't move easily with other financing or that won't appraise for asking price. They are selling cash flow.

Great cash flowing properties that aren't in total war zones have ample cash buyers or buyers with decent private money in most urban markets these days.