Rental Invesment (with no money out of pocket)

[Dave Kennedy]

Looking for some feed back on this proposed scenario below. I its possible to structure a deal like this. Not really asking if its probable but just possible.

Let say you find an apartment complex for $1M, look at the numbers, sounds like a reasonable play and you get it under agreement. Now you need to find financing. A lender runs the numbers and realize the investment is solid and they will provide 70% of the purchase price.

Now you run inspections, appraisals, legal fees, environmental reports....etc...etc and incur 100k in costs in due diligence.

You still need to tie up an equity partner/investor for the remaining 30%.

Would you be asking the investors for 300k (the 30% on the $1M purchase) or would you want to ask the investors to cover the 30% + the "load" 100k?

Would the inital DD money come out of your pocket and then it gets funded by investors/equity partner?

So essentially you'd have no money into it but share in a % of cash flow and appreciation.

Obviously in this environment it'd be a tough deal to pull off but is this how these "no money from your pocket" deals work? You would have to front some costs to perform all the DD, but the receive it back.

I know a few posters on here mention that lenders wont lend if you dont have skin in the game. Obviously that make sense and probably accurate. But thats not what I am asking here. I just want to know if this is how a deal is structured that these no money downs say to be real.

Thanks!