Asset Based Mortgages?

Question

If these have the 2 position's to make up the puchase price, how can I use BiggerPocket's in finding the 2 lender's to satisfy each position to purchase the cash flowing property?

Andrew Syrios · Answer

I haven't seen any lenders willing to do second mortgages, especially to get up to 100% (or anywhere close to it) of the purchase price for an investment property in a long, long time.

Robin Simon · Answer

You are going to have a lot of trouble finding financing options with a 2nd lien and to 100% make up a purchase price (i.e. 100% debt financed with no equity or down payment "skin in the game") as part of your payment.

I'd recommend looking in the "Creative Financing" subforum if you want to explore potential ways of doing this but frankly it is really difficult to find a genuine "shortcut" that wont end badly for not investing any of your money at all.

BRRRR Method remains IMO the best for this but you still have to put some of your own capital to use during the process

Melvin List · Answer

Asset Depletion loans are an option. Also might want to look at bank statement, DSCR, or No Doc Options.

Jason Wray · Answer

Asset based mortgages carry a better rate but you are going to have your assets locked up not able to touch until you refinance or sell the properties.  In most cases your better off buying with "All Cash" and then you can use a "Delayed financing" program to get up to 80% cash back LTC loan to cost.

Good thing about delayed financing is there is "No Title Seasoning" so no 6 months wait to pull cash out.  You can pull out 80% LTV what you purchased it for plus any repairs or renovations.

Also with asset lending you need to have a large amount of cash/liquid reserves.  In most cases it requires you to have over 125% above the sale price not just the sale price.  The LTV will be based off of credit score, property type, number of units and loan amount.