CitiApartments and its sister companies bought buildings on credit from outside investors, with down payments as low as 5% of the total purchase price (as opposed to 30-40%, which is more common for comparable commercial real estate purchases). Because of the high prices paid for buildings, and the high amount financed, the buildings have negative cash flow and cannot support their mortgage. The company's lenders typically provided higher than usual loan reserves that would give CitiApartments sufficient money to make interest payments while also paying off or evicting existing tenants, based on a financial model by which it would replace at least 75% of the tenants within two years.