Equity

[Karen Korntved]

I have $100,000.00 to invest .

The property I am looking at is a multi-family dwelling cost about $500,000.00.

If the bank requires 20% down to secure the loan which equates to $100,000.00 I will then no longer have any capital to invest for making future purchases.

My question is – If I buy this property will I be able to transfer the equity of the $100,000.00 in to a secondary property that I would like to purchase.

My goal is to purchase one property per year, hopefully using the original $100,000.00 as equity by transferring the $100,000.00 for a personal loan and then using the same $100,000.00 equity to purchase property after property.

Is this possible to do?

[Joe Villeneuve]

No.  That concept is used when you get seller financing.  The bank isn't going to exchange collateral.  You're best bet is to see if you can get an equity line on this purchase after it's seasoned enough to satisfy the lender.