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How to Buy A Commercial Building with No Money Down Property Investment?

How to Buy A Commercial Building with No Money Down Property Investment?

It is possible to buy a rental property with no money down if you know how to do it. Many real estate investors are aware of the fact that money can break or make a deal. Not having access to the right amount of funds can prevent a purchaser from bidding on a perhaps lucrative piece of property. That said it is possible to make a no money down property investment. The right deal can, in fact, end up paying off for all the potential risk associated with it.

Commercial Real-estate: no money down property investment

While there are many ways investors can purchase a commercial building without putting a down payment on it, there are pros and cons to be aware of with such a deal. Before you sign the dotted line make sure to walk through our examples of real estate deals with no money down.

Borrowing the Money

When you see potentially lucrative commercial real estate for sale, one way to buy it is by borrowing the down payment. The down payment can come from a commercial lender who offers a competitive interest rate, or the borrower can use the home’s equity or another line of credit with tax benefits of a mortgage.

borrowing money for commercial real estate
borrowing money for commercial real estate

Take over the Existing Mortgage

The so-called “subject to” contract is another way to buy property with no money down property investment. It primarily works by using the seller’s existing finance or a part purchase. It is a particularly good idea if the seller is getting a low-interest rate. So, the buyer will get the title of the property in exchange for paying the mortgage by the seller. That said make sure to research the ‘due-on-sale-clause,’ which prevents new buyers from assuming mortgage payments.

Swapping Property

Many commercial real estate sellers are investors themselves. So commercial real estate for sale can also be converted into an exchange. Instead of paying cash down, you exchange the property you want with the one you have. You can also trade things like a boat, camper, cars, etc., in place of a cold hard cash transaction.

How To Get A Commercial Loan With No Money Down – Mortgage Combination

Another great way to buy rental property no money down is if you own a property you can combine the mortgages to give the seller cash when the deal closes but which isn’t your money. The seller can also be convinced to place a second mortgage on top of the existing one, keep the cash, while you assume repayment of both loans. Though make sure to use a commercial loan calculator to estimate how much you’ll end up having to pay.


A no money down property investment is very attractive for certain buyers but not for everyone. Figuring that out requires you run the numbers. If a property is being advertised as a must sell and has been on the market for a while the seller may be up for some negotiation. However, like with all real estate transactions research is critical. Do your due diligence before acquiring any commercial property, regardless of price.


Stacey Sanzone

Self taught Writer, SEO, web developer and a lover of Real estate. When I am not sipping coffee and writing, I like to hang out with my dog friend Loki.

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