Originally posted by Mobile Mortgage:
Hi Lioness,
I would not suggest using the unencumbered property as security on the new purchase,there is no need,
Instead, you could access your current equity and use this as a deposit on 80/20 finance; this will avoid giving the lender 2 properties as security over One loan, (cross colaterisation)

This…[Read more]

quote:
Hi Lioness,

Another advantage with a LOC, is the fact you are able to split your account in to sub-accounts which will help keep in clean when tax time comes around. This way you can montor cash investment and interest paid on each loan.

Some of the banks will allow you to have up to ten sub accounts for no extra fees ( excluding your…

[Read more]

quote:
I fully agree with Birdman on this one. Setting up an LOC also gives you some bargaining power too. If you can go in and offer a cash transaction and buy the property out of your LOC then refinance after. This enables you to move quickly and offer agressively.
Hope this helps.

Enjoy
AD [:0)]

“Don’t dwell on reality; it will only keep…

[Read more]

Hi Birdman,

Thank you for the information. Much appreciated.

Rissa