How to Buy Multifamily Real Estate Without a Bank Using Creative Financing

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Издатель Aug 2, 2026

In this Deal Structure Sunday, Zach Beach breaks down a real five unit multifamily acquisition in Meriden, Connecticut that cash flowed from day one, required almost none of their own money, and is projected to generate over $150,000 in total profit over an 84 month hold.

The property came through a wholesaler whose seller was burned out from self managing 37 units and ready to exit. The original plan was straightforward seller financing at a 0% interest rate with principal only payments. Then title came back with an existing mortgage of roughly $162,000 still on the property.

Key Talking Points of the Episode

01:24 Why the seller was motivated to exit after self managing 37 units
02:11 Overview of the Meriden Connecticut market and why it made sense
04:05 What running title revealed: an existing mortgage of roughly $162,000
05:50 How Zach got on a three way call with the seller and attorneys to restructure the deal
07:25 How the $2,000 payment is split between the bank and the seller
08:04 How the down payment of roughly $32,000 came together with a capital partner
09:04 Current rents versus pro forma rents and the path to increasing NOI over time
11:23 The role of the capital partner and how the operator and passive investor split the deal
13:50 The projected exit at 84 months and why $650,000 is a conservative sale price
15:11 Why NOI and cap rate determine value in commercial real estate
16:40 Why tired landlords represent a massive opportunity right now
17:30 Legal considerations including due on sale clauses, the Garn-St. Germain Act, and holding in a trust

Key Takeaways

1. Seller financing turns the seller into the bank and makes it possible to negotiate terms no traditional lender would ever offer, including a 0% interest rate and principal only payments that build equity faster.
2. When title reveals an existing mortgage on a property, a wrap mortgage can preserve the original deal terms by incorporating both the underlying loan and the seller's equity into a single new loan structure.
3. Never take seller numbers at face value. Running title and completing thorough due diligence before closing protects you from surprises that could put the deal at risk.

Links

Smart Real Estate Coach Resources
https://smartrealestatecoach.com/getgoing