Curious Question about 100% financing

[Tarek Wazzan]

I am wondering, if there's a package deal of properties that I am offered to buy at 70% or below of market value. Is there a bank or private lender that would finance the whole package 100% without me coming out of pocket? Assuming all the rentals are cash flowing monthly. Thank you very much!

[Brent Coombs]

Basically, no. All such Lenders want you to have "skin in the game". Otherwise, they might as well just buy it themselves if they're taking 100% of the risk! (Er, that's WHY you're a Wholesaler, right?)

If you don't have sufficient equity in your primary to take out a HELOC that would cover your required deposit, it's back to finding someone who DOES have money, to make it happen!

If others disagree, I'd also like to know why/how!

If it was readily possible to do what you're suggesting - there'd be no reason to be a Wholesaler!

You'd just "buy" every good deal you find and let your tenants pay off EVERY one!

There IS a strategy that comes close to allowing that, but it STILL requires YOU to come up with the FIRST 20-25% deposit. (It's called: the BRRRR strategy). Cheers...