The Dangerous Game of No Money Down Deals via Multifamily Insight Blog

Attempting ye old standard “by the book” cookie cutter tactics lamely taught over and over again for single-family investing and applying this to a commercial multifamily deal is a recipe for disaster. In fact, it is a very dangerous game as the end result is that you, the brand spanking new owner of that apartment property, probably have risk your entire net worth for the privilege. Congratulations, cliff dweller.

When was the last time you were, figuratively speaking, thrown under a bus? With respect to nothing down deals, too often people go willingly- under the bus. Year in and year out we get emails seeking guidance on multifamily deals where the buyer has limited or no capital; the proverbial nothing down deal. Lets me be succinct: DON’T DO IT! There. I said it.

Few people seem to appreciate this response prior to gushing with deal specific particulars. Doesn’t matter- don’t do it. I don’t care if your uncle is giving you the deal of a lifetime. Sounds harsh, doesn’t it? Let me explain.

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