Using equity from first mortgage for down payment

[Thomas Cheek]

Hello everyone.  My wife and I are getting started in the real estate investment world with my lifelong best friend and were thinking about taking equity out of the home we own right now for the down payment on our investment property.  Any pieces of advice, or thoughts about the risks associated with this would be greatly appreciated.  

[Chris Mason]

This is a common strategy. 

Using the same lender for both will be advantageous because that same lender already has your paperwork, and can send it right back to the exact same underwriter, keeping things fast and allowing you to write aggressive 21-25 day close of escrow offers that set your offers apart in some way OTHER than offering a higher amount. When I follow up with a listing agent and say "yup we can close in 21 days because I just did a mortgage for them a month ago and it's going right back to the same underwriter and [restate what I said above]" it's generally well received.