Hi everyone i have a question if anyone can help with advice it will be greatly appreciated.
I currently own my single family residence i purchased in 2012 and I also own my 1st home purchase (2 family multi purchased back in 2010). theres no equality in the multi but I do believe there is some in my SF residence because i got it alittle under market vaule. Im looking to purchase another property and was wondering whats the process of me using what i own already toward purchasing a new property as a buy/hold. Are there any perks that i could use for leverage with what i already own? i would like to stay under 10k out of pocket as my down payment.
I doubt you paid "under market value" for your residence, but that's another post, you may have, not likely. You have established equity from the market changing.
You can borrow against current assets, several loan programs exist that might be applicable.
You can pledge assets as additional collateral for a loan on a subject property.
You can pledge just the asset, as a lien or you can also pledge the income from an earning asset to a lender.
Might consider "blanket mortgages" one loan on several properties, search here for details on "release fees" and "release amounts".
In a seller financed deal, you can employ these assignment methods.
You can also assign a portion of the income generated from the subject property.
If you have lease income, the leases can be "factored", there are "Factoring Brokers/Lenders" like borrowing based on that lease income, this is beyond your scale, but an individual private lender or hard money lender might consider such arrangement.
Liquid assets, which are not RE, can be used as well, Google "borrowing against the box". :)
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!