Recently one of our clients was attempting to buy a small mobile home park in North Carolina. The loan amount was small (under $300,000). Our capital source (lender) has LTV’s to 60% max., so our borrower was required to come in with a 40% cash down payment. He did not have the money. So we started to do some digging around and found out that he had a SFR investment / rental property with some equity in it. We suggested he try asking the bank for a HELOC, which he did and surprise! They actually provided the HELOC. So now he has cash for the down payment.
Unfortunately, the park was sold in the mean while to another investor who had the cash. Regardless, it shows that our capital sources have ideas and tips that they share with us and we share with you to help you become successful with your investment plans.