Are infinite returns possible in SFR with bank & owner financing?

[Jose Thompson]

Hello, everyone.

I've heard plenty of interviews on podcasts where investors buy real estate with 80% bank financing and owner finance the remaining 20% of the purchase price essentially getting you into the deal with no money down. However, a local loan officer told me that I'd have to put 20% down of the amount financed regardless of the LTV. So based on what he is saying, even if a property is worth $100,000 and I buy it for $50,000 for it I'd still have to put $10,000 down (20% of 50K).

Is this correct or did he misunderstand my question? Does this only work with multi-family? Prices in VA are a bit high so I was banking on the fact that I could use this creative finance strategy to get started. But if this is not the case I'll have to try something else to get around the large down payment.

Thanks in advance for your help.