However Banks have state auditors to answer to and 20% down is required or if you have other assets to pledge, they might lend that 20% as well if you cross collateralize on another property.

.- The owner of the real property has to pledge the real property as collateral.

FHA guidelines allow using collateralized loans (i.e. your 401(k), stocks, bonds, life insurance deposits, other real estate) but not anything that would increase your monthly obligation - so private loans, signature loans, etc. are all out for FHA.

@Patrick Philip,Well, banks are "flush with cash" these days, but no, they do not have unlimited funds.Also, when banks lend, they impose certain restrictions on the loans, the borrower, the collateral, the terms of the loan, etc. so the note can be sold in the secondary market or be insured by government-sponsored agencies like Fannie Mae, Freddie Mac, etc.Private lenders ("OPM") typically don't write loans to sell them, and typically are interested in the deal rather than the borrower's details.Using OPM down usually means putting some kind of partnership, joint venture, etc. together so the source of the down payment is less of an issue or a non-issue to  the lender(s).Dunno if that helps...

With this route, you trade on percentage and points for their experience.It could give you a good start without your house as collateral.

Were you able to cross-collateralize?

(d) Solicits borrowers or lenders for or negotiates loans or collects payments or performs services for borrowers or lenders or note owners in connection with loans secured directly or collaterally by liens on real property or on a business opportunity. 

I check them out before I give them a dime.3. good collateral.

Hello Abraham,You may be able to refinance all 5 properties under a blanket loan structure and take cash out for down payment or cross collateralize all 5 with the purchase of the apartment complex.  

The borrower delivers the pledge of collateral and repayment and the actual lender delivers cash.