Zero down financing

Sorry in advance for any naivete displayed here…  I’m new to this.  Are finding zero down financing deals a needle in the haystack exercise?  I assume these would be relegated to seller financing vs 3rd party lenders?  With seller financing, is it better to be up front about wanting that aggressive financing or to first negotiate a price and then discuss financing terms (like with buying a car)?Maybe I’m missing something here (wouldn’t be the first time and I’m sure won’t be the last) but from a buyer’s perspective, with double digit cap rates, I would think there’s plenty of spread available to utilize 100% leverage and still have plenty of margin for error.  I guess the only major risk being payoff off that seller financed note upon maturity?But from a seller’s perspective, why would they cut their cash flow in half (assuming they’re income dependent) from financing a deal in its entirety, given the risk of getting their principal back?  Is it possible to get a 75 or 80% LTV from a 3rd party lender and then get a seller promissory note to cover the difference?  Is that another way to skin the cat?

You will find zero down deals in two ways 1) deals that are so bad that nobody will take a risk in the turnaround without zero down – particularly where there are deferred maintenance issues (such as vacant homes) that will require as much capital as a down payment and 2) when the seller likes you and wants to give you a break. I have had zero down deals from both sources. Elderly mom and pop sellers are often guided, not by money, but by the satisfaction of helping a younger person get started in life.I did 5 zero down deals out of my initial portfolio of 28 parks – that’s almost 20%. Of our recent portfolio of 100 parks, that number is much smaller. But part of that reason may be that we are buying better quality parks today than the ones I started out with.So in answer to your question, yes, zero down deals are rare. However, they do exist. This business is all about volume, and the more deals you look at, the better your odds. It’s like finding a four-leaf clover.