Funding the down payment

[Timothy B Hall]

Good evening investors and real estate gurus,

Here's the situation: I have 2 tri-plex's in the Tampa Bay area. VA Loan/Conventional loans were used for the acquisitions. I no longer live in any of the units (it's been a few years since I bought them). They are fully leased and managed. I still have mortgages on both houses, but also have about $7-800k of equity now built up. I would like to acquire another investment property, probably commercial. My issue is the 20% down payment. I recently had a deal fall apart, which was a learning experience, but also very frustrating. That was in part the seller not meeting deadlines set by the contract, but on my side I was having trouble coming up with that $170k. I know, I have expensive tastes. I am currently building the war chest, but instead of going cash poor to make the next deal happen, what would you do here?

I found that most banks I talked to didn't want to finance an investment property equity line of credit. If you have one you have used and recommend, please send it.  My rates are currently good! 3 & 4.6 respective.  The cost of refinancing would be astronomical and not financially intelligent.  Do you agree?  Believe me, I have been working this, and have asked a few loan officers for solutions.  Nothing significant came of that.  I have a pre approved mortgage, just need to fund that down payment.  

What would you do?

Thank you for whatever input you feel is appropriate.

[Vijay G.]

Oh well cash is the king. You should not worry about 6% interest rate. Just pull out the cash and reinvest. Couple of years from now you will build more equity. And if the interest rates are down you can refi again. Good luck !