🚀 go-pugleaf

    A number of people have responded to my posting about
    using a 2nd mortgage as a down-payment on another piece
    of property.  The consensus is "all they care about is 
    whether you can carry the debt".

    Let me try to clarify what I am asking (quickly).  It was
    my impression that mortgage makers (whatever they are called)
    want to see that you have a certain amount of EQUITY in the
    house YOU are buying with THEIR money; the theory being
    that you are not likely to walk away from a property if you
    have at least 5% of your own cash invested in the property.

    Otherwise why don't banks do 100% financing?  Or for that
    matter why doesn't everybody buy absolutely all the apartment
    buildings they can and if any don't provide positive cash
    flow just let the bank worry about it?

    My question is then will banks be satisfied that I have enough
    at stake if I "take equity out of one property and into another"?
    I realize that the people who process loan applications just
    follow procedural rules and tend to be somewhat literal-minded
    but does anyone have any actual experience doing this?

    If it works, should I go on cable tv and offer to sell
    cassettes of myself talking about it for $295???


    Tom Gross
    Apollo Computer, Inc.
    Chelmsford, MA