Can I combine properties and finance as package? - Posted by Jerry-WA

Posted by Robby C on April 26, 2007 at 01:39:29:

Ed –

Regarding Cross Collat. Let’s say I go to my Community Bank for a $50,000 loan for a house. They hold a loan already for me, in a property with $150,000 equity. Will Cross Collat-ing allow me to buy 3 of the $50,000 places secured with the $150,000 equity in the one already with the bank?

Thank you in advance, interesting subject,

Robby C

Can I combine properties and finance as package? - Posted by Jerry-WA

Posted by Jerry-WA on April 24, 2007 at 18:06:58:

I own a duplex worth $130k and owe $88k. There is a four-plex across the street which is for sale but I have no cash for down payment. Will a bank consider the equity in my duplex and finance both properties together rather than my having to produce cash for a down payment?

Yes, if… - Posted by Jimmy

Posted by Jimmy on April 26, 2007 at 08:05:47:

you are asking more than one question.

  1. blanket loans. these are done every day. I have about 10 of them. local banks do them. and so do big banks, just talk to the business bankers (and not the home mortgage lenders). these are NOT HARD MONEY LOANS, as one of the replies suggested. I get mine written at 7.05%, 15 yr am, 80% LTV, no points or PPP, no appraisals required (if assessed values work), no title policy required (atty review saves $).

  2. but will you qualify? you duplex is sitting there with a 68% LTV. that does not leave a lot of room for the next one.

Re: Can I combine properties & finance ? - Posted by Ed Garcia

Posted by Ed Garcia on April 25, 2007 at 01:29:27:


Yes, this is called a Cross Collateralization. This type of loan can be accomplished at pretty much any bank; however my bank of choice would again be a small local bank.

I actually teach this as one technique for doing a fast loans with little or no cash out of pocket. You explain to the bank that in lieu of down payment you wish to pledge additional security for the loan.

In addition to doing a Cross Collateralization, I?ve seen many investors continue this type of borrowing with a small local bank adding additional properties and now this type of financing becomes a Blanket Lien.

Ed Garcia

Can I combine properties and finance as package? - Posted by Rich-CA

Posted by Rich-CA on April 24, 2007 at 18:30:00:

I would think they wouldn’t, BUT you may be surprised. Ask you lender or Mortgage Broker and see what they can do for you.