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Leveraging Property to Buy Property | Mentorship Monday 095

1,520 views · Published 16 April 2018 · 5:00 · Indexed 30 October 2026

Channel: DeRosa Group · 2018 · Education

Hey Youtube,

Welcome back to another Mentorship Monday! Today's question comes from Laura. Her question is, "Can I leverage a property I own free and clear towards purchasing another deal?". Thanks for the question Laura!

So, how do you use leverage or equity to get financing for another deal? Here's a few things that you can do. Going off the numbers of your deal and the estimated value of the property you already own, you're still going to need money to purchase the new property. First thing that you should do is find a small community bank or credit union in the area where you own the property. Next, you could refinance or get a HELOC (Home Equity Line of Credit).

In order to do this you'll need to get the property appraised. They'll give you some money that you can use to get started. Next let's find the rest of the money for the deal. You say that you're doing renovations, so that leaves us with a few options. You could bring in another investor to fund the deal and make them an equity partner. The other option would be to find a Hard Money Lender and use those funds to take care of your renovations. Another option would be if you could get Seller Financing by asking the current owner to hold a small mortgage on the property for you.

There's a few different approaches that you could take. It's about finding out which is best for you and what you feel most comfortable with. Hope this helps! "Have a Great and Profitable Week!"

As always, please email us any real estate questions to [email protected] and we will answer them on an upcoming episode!

Learn more about The DeRosa Group at http://www.DeRosaGroup.com or on BiggerPockets.com - https://www.biggerpockets.com/renewsblog/author/mattfaircloth/
Matt & Liz, founders of DeRosa Group, were recently second-time guests on the BiggerPockets Podcast.

Check it out: https://www.biggerpockets.com/renewsblog/bp-podcast-203-finding-deals-funding-contractors-mentors-matt-liz-faircloth/

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Leveraging Property to Buy Property | Mentorship Monday 095

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