Group,

I am a RE investor in the DC Metro area. I am cashing out of my SFH's and looking to leverage my cash for a larger amout to buy a large multifamily (100+ unit) building in TX or GA. By the time my closings are complete, I will have $200k in cash.

Is there a way to leverage that cash? Maybe a loan using 50% down (200k) to get a $400k loan? Maybe a line of credit to get the same thing? Possibly a business loan?

I have 2 companies, one is a RE asset holding company and the other is a Property Management company. If I could get a business loan for the PM company (since I plan to manage my apartment building with my PM company)... would that help?

Any ideas, words of wisdom, or guidance?

Do you want to borrow your down payment?

Because getting a loan is in effect using leverage. But, the way that I read this is that you want a loan to get enough money to get a loan. I don’t think those units are worth $6M a piece, are they?

If that is the case, then maybe…….. It all depends on the business.

From a lenders perspective, borrowing money for a down payment to borrow even more money is a bad idea.

My advice is to stick to properties that within your financial means. i.e. where you are using the $200,000 you have rather than looking into properties that are out of your reasonable financial reach.