Do Your Clients Need Loans for Down Payments?

Real estate professionals often hear their clients complain about not having the cash on hand for down payments. These clients sometimes ask for loans for down payments on real estate purchases.

Our clients are sometimes seeking loans for down payments on property purchases, when they come to us for a rehab loan on a property. We are a real estate lender, but we also offer assistance to our clients with personal loans for down payments. These loans can also be used as loans to pay taxes. If you are a CPA, accountant, attorney, or other tax professional, these types of loans may be the solution for your clients to pay Uncle Sam this year.

But what is the collateral used for a loan for a down payment if not the property itself? There are only two types of collateral that lenders will accept on a personal loan, and these are jewelry and artwork. Because many high net worth individuals often have expensive jewelry or a large home full of artwork, these assets can be used as collateral for a loan to pay taxes. For example, it is not unusual for a high net worth individual to have more than a million dollars worth of fine art in just one property. This is an asset that can be used to pay taxes or for use in sudden opportunities in real estate.