Collateral
Hello TCI, I am in the process of trying to buy a single family home from a family memeber. This property is listed about 30% under maket value. My question is, could I used this property as collateral to buy another property because I would like to own a multi-unit? If not how long do I have to wait to use it as collateral? Would I be able to use this home and not have put down any or little money down on my second property?
[ Edited by steady28 on Date 03/21/2006 ]
It may depend on what state your in. I have done something similar to that.
After closing on the house, and you may have to allow the asset to season. go to the bank and take out a line of credit against the equity. I hav efound that Wachovia is the best because they will allow you to borrow up to 100% on an investment property, at least in my state.
Robert
Thanks for the info...I didnt think of that!