by Peter Conti

In order to buy apartment buildings with nothing down, you’ll need to take three steps. Step one is the same as buying a nice home with nothing down -- you’ll need to find a motivated seller who will be open to your creative offer.

Step One -- Find a Motivated Seller

We heard about Carrie from a real estate agent named Tim whom we had established a relationship with. Tim was out fishing for listings when he found a 24 unit apartment building owned by a gal named Carrie who needed some help.

Carrie had worked hard all of her adult life looking after and managing this 24-unit apartment building she owned. As she cleaned, fixed, and rented the units over the years, I’m sure she had a good feeling of comfort knowing that all of her hard work would allow the apartment building to support her in her old age.

Unfortunately, an unpleasant surprise was in store for Carrie. At the time that Tim heard about her, she was 88 years old and living in California with her children. She had succumbed to Alzheimer’s disease and needed to go into a nursing home where she could receive special care. The problem was that this apartment building wasn’t producing enough money to pay for the nursing home. Despite hiring three different management companies in three years, the building was only making about $2,000 a month after paying the management company and all of the expenses.

Tim offered to list the property and sell it for Carrie’s Trust, which was how the property was set up due to Carrie’s declining health. Her kids didn’t want to sell the property outright because a large part of the money from the sale would have to go toward paying capital gain taxes. Tim called us because he knew we are always looking for situations where property owners are motivated and he knew that he was unable to help Carrie himself. (We in turn send Tim properties that don’t work for a creative nothing-down offer but work great for a listing and a sale for him).

Step Two -- Run The Numbers

Then you need to “run the numbers” to see if you’ll be able to make a profit. You’ll want to know with certainty that any property you get into is going to make you money, not cost you money. The best time find this out is before you commit to a deal. We looked closely at the income and expenses from the building to see if there was any way to improve the cash flow. We knew right away that because the management fees were close to $1,000 a month, we could pay Carrie the $3,000 a month she needed. The question was, could we make a profit?

We felt certain that we could at least break even and were fairly confident that the upside was pretty big. The rents seemed to be on the low side, which meant that there was room to increase the cash flow in a positive direction after taking control of the property.

Step Three -- Use the Cash Flow to Pay For the Deal

Step three to buying an apartment building for nothing down is creating an offer that uses the cash flow from the property to pay for the deal. We offered Carrie a “master lease”, one of the seven purchase option techniques that would meet both her needs and ours. In return for our monthly payment of $3,000, which would be paid from the rents from the property, we received the opportunity to purchase the building for $450,000 (it’s current value based on the rental income it was bringing in). We would be able to exercise our option when Carrie passed away, thus saving Carrie’s family some taxes.

We immediately began increasing rents. Rather than increasing everyone’s rent at once, we sent notices to one-third of the building each month for three consecutive months. Some of the tenants moved, but others griped a bit about the rent increase and decided to stay. Within four months of taking over the building, we had raised rents to market levels and were receiving an additional $85 per unit on average. This meant the total income from the property increased from $7,100.00 a month to $9,182 a month.

This is a monthly increase in cash flow of $2,082. We were thrilled to realize that we had just created an annual income of $24,987. This is as much money from one property as some people work 40 to 50 hours a week all year to make.

The really exciting part is that because income property in the area sells at a 10% capitalization rate, any increase in cash flow from the property increases the value of the property by ten times. This means that the annual increase in cash flow of $24,987 makes the building worth $249,870 more than it was worth just four months before.

The nice thing about great cash flow like this is that you can afford to hire a property management company to run the property while you sit back and wait for it to increase even more in value. This is exactly what we did with this property. You can do the same thing if you follow these three crucial steps.

You will probably have to sort through quite a few properties before you find one like this. Once you do, you’ll know two things for sure. You’ll know that it’s definitely worth the effort and you’ll also know that you want to do more deals like this again!




thank you

To Mr. Conti, Dean Graziosi, his staff, family, and students - Thank You.

I just wanted to say that this is definitely powerful stuff.

S. scan (as in analyze)

I. identify (ie run the numbers)

P. predict (see the outcome before you even get started)

D. decide (best plan to create a winning situation and keep it honest; things turn out better and you feel better) cool news with 10%

E. execute (the most important part, action, action, amongst fear, the unknown, the knowledgeable...know you helping others)

It spells S.I.P.D.E. (motorcycle school, when i picked up a brochure 9years ago when I thought i was going to get a Cool lol) That time will come.

Time and Energy is all we have. Yes put the money thing aside (as tough as that may be for many of us, as it is for me...but my situation is just a bit different than most) journey goes on..thank you to all the knowledgeable and anyone else who contributes the hard knock life.

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Thank you Sistreat

That was a good lesson. I'm still looking for my first deal and you've inspired me to also look at apartments.


Owen Properties, LLC


Thanks for sharing the info.

SPR Property Solutions, LLC


Nice article, some good info there....Jan


Thanks for that. I have been looking at ways to go about finding motivated apartment owners. Would it be a good idea to do a mass mailing, and if so should one rent a post office mail box ? I have looked into ways to find the owners and doing mailings. I just know this can and would be helpful in my REI toolbox.

Thank you for the tip

Thank you for the tip -------- MILTON

Great tips

Thanks for sharing such great tips for no money down!!



This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams

Bruce Springsteen

Peter Conti Commented " We

Peter Conti Commented

" We offered Carrie a “master lease”, one of the seven purchase option techniques that would meet both her needs and ours."

What are the seven purchase option techniques?

Thanks for the info love to hear what others are doing!!!!

Need call back a seller!

I made an offer for a Lease Option on a property with some very similar details. The seller was 82 anded owned 2 6 unit building that were being rented for about $95 per unit less than FMR.

Need to call back and talk about a master lease.


Quad City Real Estate Investors Association

Here is the proof of getting a loan to buy a deal with a 585 Credit Score.

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Apartment buildings

Where can I get the steps on doing this, and How do I locate these properties. I want to try this...please help open to all advice. Thank you in advance

Nice to hear from you.....

Hi sistreat.....

Yes I will look into this...
Thank you for all your encouragement to open our minds to do bigger and bigger things in Real Estate..

God bless you....


Nice to hear from you.....

Hi sistreat.....

Yes I will look into this...
Thank you for all your encouragement to open our minds to do bigger and bigger things in Real Estate..

God bless you....


Hey guys!!! it just looks

Hey guys!!!
it just looks like lease option is the way to go, after running all the numbers on the deal, one would be able to make money at the beginning, at the middle and at the end. I also found the compony in my area, and what that do is simply. They have tenants ready to rent with the option to buy with the ten year program. However, they do collect 10% of every rent but it includes their responsibilities to collect, to manage fix-ups and find other tenants if previous ones decide to move out. My idea was to work with them to find motivated sells, sign a lease option and then make an agreement with the company to get tenants in. I just wonder if you could be able to find simular companies in your states to work with. This way you could increase your positive cash flow on a bigger scale.
Please, let me know your ideas!