Collateral as Downpayment to purchase commercial property

Financing, Hard Money Lenders, Private Money
1

Hello REI Club Members,

Quick question…

When using residential properties for collateral/downpayment into a commercial purchase for an apt building, do you get the loan based on…

  1. the collateral’s net equity through a HELOC,
  2. the collateral’s loan amounts,
  3. or the collateral’s market values?

What’s the norm?