Financing Property Project

I have a property worth 200k, of which 180k is mortgaged My business partner has a property worth 300, of which 100k is mortgaged We are both willing to use the equity on these to secure finance for the following...

We would like to finance the purchase of an auction property which we wish to renovate and sell.

What options do we have for finance the purchase of the third property? Would a bank give us a mortgage secured under the equity held on our own properties?

Thanks ==================================== I would very much doubt it on your property..its not _worth_ 200k its _valued_ at 200k. That is a 90% mortgage on which someone else has first call. Doesnt leave much for the bank does it, and if your valuation is optimistic, (bank valuers will always value lower to leave a safety margin anyway)or prices fall a tadge, it leaves nothing.I would say that effectively you dont have any equity in your property.

I agree.

You have no assets to put into the venture.

Your business partner however, could potentially raise a significant amount using equity from his property, but I don't see how that helps you, unless he's a bit gullible;-)

Adrian Smith