Down payment for apartments

[Jennifer Fernéz]

Does anyone have experience with a commercial loan and buying apartments that have more than 4 units?    How much money (what percent) do you need to put down for a commercial loan?    Just wondering if I need to save like $50,000, or if there is a cheaper/easier way to aquire an apartment building.   Thanks

[Josh Caldwell]

Steven,

in the situation above the seller is 85 years old and doesnt want to deal with the property anymore.  His kids are no spring chickens and they live out of state.   This piece of property was prime for a creative finance deal.  the owner wanted to leave the property to his kids and grandchildren, but they didnt want it.  So we proposed a deal where we pay the owner for his equity at his full asking price, but at a monthly payment that the current tenants could cover, and still have a monthy cash flow for my student.

Then we broke the payments into 16 years worth of monthly payments and he agreed to our terms, giving my student a full owner financed deal at zero interest, its all principal.

in return, our attorney did the paperwork so that our payments go into an escro acct with the owner getting the money at first, and when he passes, the payments get devided equally to all of his heirs.

The lawyer did that hard part, all we did was solve the problem that we uncovered by talking to the owner

to your success

Josh