Yes—but it’s very tricky. Buying commercial property with zero money down is not impossible, but it usually requires creative financing, strong relationships, or special circumstances. Here’s how it can happen:
1. Seller Financing
- The property owner finances the purchase instead of a bank.
- You may be able to negotiate little or no down payment if the seller is motivated.
2. Partnerships or Investors
- Bring in investors who provide the down payment in exchange for a share of ownership or profits.
- You act as the operator/manager with little or no cash upfront.
3. Leases with Option to Buy
- Lease the property with an option to purchase later.
- Sometimes a small portion of lease payments counts toward the purchase price.
4. Government Programs
- Some SBA (Small Business Administration) loans or special programs may allow lower down payments (though zero is rare).
- SBA 504 loans, for example, typically require 10–20% down.
5. Creative Deals
- Trade services, property swaps, or assuming existing debt could reduce or eliminate your cash down payment.
Reality check: Most traditional commercial loans require 15–30% down, so zero-down deals usually involve private sellers or investors willing to take extra risk.
Related
Do you have to put 20% down on a commercial loan?