While not familiar with CA laws, most states have made this exception due to the fact that they often take care of seller financed transactions and many times they will carry back commissions and loans are generated for payment.

If the bank won't loan you the remaining $40k, you may be able to find a seller that is willing to carry it back by way of owner financing.

I find there's always a gold nuggets of information in each one and I go back to listen to a number of them multiple times.

The current market has a lot of people buying and selling gold.

I sold properties and carried wraps or 2nds at a 10-12% interest rate with 5-7 yr balloons.

He who has the gold makes the rules.

These funds just seem like such a gold mine if you can tap into them.

I was looking into the option of commercial financing and if that would allow me to have him carry a few % maybe let me do 20% on both or less.

You probably knew this but others might not.However, if you cannot take these passive loses they carry forwared into future tax years.

I know a local real estate "mogul" who carries a yellow pad of paper EVERYWHERE he goes even to the doctors office.