Equity New house?

[Kris Cabrera]

Hey guys looking around for options but would like to get your opinion on buying a second house with equity. What would be a reasonable down payment (percent wise) to put down on a house you will be renting/investing? 10,20,30,40?? Do you guys think the market is a bit high now? I currently live in Chino Ca

Thanks!

[Val Csontos]

Do you have equity in your current house? If you do you might be able to ask your local bank (only small banks with few branches will do this in my experience) to cross collateralize. Instead of putting down 20-25% cash on the next house ask the bank to see, if you could put down "your equity" in your 1st house.

This will work if:

you buy below retail, like some house with ugly green carpet or purple walls that is not selling. Than negotiate it down the price to 60 cents on the dollar. (it is possible if you are persistent and try a few)

And if they go for it get it under contract and start talking to the VPs of commercial lending department of the small banks in your area to ask which one will do the deal for you!

Good Luck!