Cash or Assets Required for an Asset-Based Loan

[John Hamilton]

Say you want to invest and buy a $50,000 house.

You have no income.

You put together Other Peoples' Money, structured through an LLC, with the goal of getting an asset-based loan for this $50,000 house.

Maybe you want to put e.g. 25% down, etc. on this property, but hoping not to have to pay all cash for it.

Generally speaking, how much assets or cash would this LLC have to have jn order to get a bank to write a loan for this $50,000 house?

For example.....

25% down = $12,500
[u]Then what sort of cash reserves/assets would a bank want to see in order to secure this loan?

$50,000 in cash/assets because that's the value of the house?
$37,500 in cash/assets because that's the remaining mortgage?
$100,000 in cash/assets because that covers collateral for the house and some wiggle room?
Is there a general asset-to-debt ratio that a bank would look at to write an asset-based mortgage???

Thank you!!!