Would owner financing or private lending for down payment be same collateral?

I can now find private lenders for apartment complexes and hotels that will loan up to 85%.

The remaining 15%, I would fund with other private loans or owner financing.

Would this be using the property as collateral for two loans at the same time and thus not make sense?

If so, is there a way around this?


When they say "Will loan up to 85%" they are saying subject to a number of factors and much fewer borrowers get 85% compared to 80%, 75% or 70%. Although your credit does not qualify for the loan lenders will run your credit because they want to know you handle money responsible. 

You have to have skin in the game (Money Down) unless you take over a property under a lease option, contract for deed, wrap or sub 2. To get a new loan you will have to have down payment that looks like it comes from you and / or your partnership / partner.

The lender will probable let the seller carry some subordinate paper for you, let’s say 10% but then the lender will only loan you maybe 80% max as they still expect you to come in with a cash down payment from you or your partnership / partner.

A conventional bank or lender will not loan you down payment money for another property unless you have collateral.

You could not record a 2nd TD for your partners money until after the purchase closing and the primary lender / seller is going to want to look at your partners credit and have all parties sign for the loan.

So their again the Elephant in the room is “Why would someone partner / lend money to you” rather than Jay or Me or anyone else with years of experience? You don’t own any property, you don’t have 15, 20 or 30 years or more of experience, and you can’t bring anything to the table today!

That does not mean you can’t get there but it takes time and dedication to build experience and to gain successful references!


Hello. I thought about using my real estate license commission to pledge toward down payment. Does this sound feasible? And, how would you make up the rest of the down payment creatively. If you were a newby? Thank you.