How Does One Buy An Apartment Building With No Money Down?
Truthfully how does one buy an apartment building with no money down? I mean, the idea of buying an apartment building with a multi-million dollar price tag, without putting any money down just seems preposterous! Is it real? Can it be done?
It is very real, and yes, it can be done. There are probably a few thousand apartment entrepreneurs across the country doing it right now. Let’s break it down and look at it, because once you understand apartments a little more you’ll see that buying this way is just the most effective way to put deals together.
First of all, “no money down” is misleading. There are always down payments made on apartment deals. Paying a down payment is the only way for a lender, or seller if owner financing, to minimize the risk they incur by extending purchase money financing. The more down payment buyer puts in, the more likely they are to make the payments. End of story. So no seller or lender is going to extend 100% financing on any apartment deal, there will always be a down payment required.
However as an apartment entrepreneur, you don’t put up your personal money for a down payment. To cover the down payment, closing costs, fees, earnest money, rehab cost, and any cash requirement the deal has, the smart thing to do is use Other People’s Money.
In French, entrepreneur means ‘problem solver’. Let’s face it, an apartment entrepreneur’s entire brief is to take a property which is essentially just a giant mass of problems, and one by one, sometimes two or three at a time … solve them. And that applies at the very beginning, when you are buying the property.
Lance Edwards Multi-Family Success Review
Wherever you currently are in real estate, whatever you part of business you are focused on, eventually you realize that the greatest way to leverage your time and effort is to start buying apartment buildings. And not just five or ten units, but one hundred or two hundred unit buildings.
This epiphany usually comes to investors after they have flipped their fourth or fifth house and they realize that, while the money is good, there must be a better way to do this. And there is indeed a better way … apartment investing.
But how do you learn the game? More importantly, who can you learn from? One apartment investor offering to teach you the business is Lance Edwards with his course, Multi-Family Success.
The Multi-Family Success home study course contains a primary course and a raft of bonus items that are actually pretty useful. The main course itself is made up of seven modules, and Edwards has structured the modules sequentially so that he covers the apartment buying process from start to finish.
Here is a list of the modules in Multi-Family Success and a brief outline of what they contain:
Module 1:
Introduction outlining the components of successful multi-family investing and apartments are the way to build huge wealth.
Module 2:
Analyzing profitable apartment deals. Teaches you the different classes of apartment buildings, what to look for in deals, what to avoid, and what profitable deals look like.
Apartment Investing Help Call #3
It may be hard to really take this idea to heart, but it is true; you as you sit right now have the wherewithal to go out and buy a “profitable” 200 unit apartment building in the next 90 to 180 days, no matter what the purchase price.
It costs nothing to talk to commercial brokers and get them sending deals to you. You know how to analyze deals to identify those that will be profitable. It costs nothing to call an apartment loan broker and get them to line up financing, and you know how to shepherd a deal through the closing process.
But what about all the cash that is needed? What about about the closing costs, the earnest money, the down payment? What about all the money needed to rehab the units after closing? What about all the cash needed to pay fees?
Yes, that’s right. Private money. It is ALL covered by private money you raise in the course of doing the deal. None of it comes from you.
Think about that. Let it sink in.
What that means is, you can buy literally any size apartment building, as long as it’s a deal. And as long as you know how to raise private money.
But there is a lot of fear around raising private money, (around SEC rules, and being rejected) and that fear holds many beginning investors back. On Apartment Investing Help Call #3, Lance Edwards explains how to deal with SEC issues, and also how to position yourself so that investors want to invest with you, and provide you with all the money you need.
Here is Help Call #3.
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
Best,
Ben
Categories: SMART Guide Tags: apartment investing help, raising capital, raising private money