Lien against one to buy another?

[Account Closed]

Hi Everyone,

I have a question about financing a deal that I'm under contract for. 

I'm debating on whether I should bring cash to the table, or let the bank put a 2nd on another property that I have some equity in. If they use a lien, does that work similar to a HELOC in that I will have a monthly interest payment in the amount of the 2nd?

Thanks,

Andrew

[Will Fraser]

Hi @Account Closed, functionally this seems like a HELOC and I personally would take the lien instead of putting cash in the deal IF the debt terms on the lien were favorable. If they weren't, then I'd plunk down the cashola, but in general debt that performs trumps burning cash for me :)