Your property’s equity or current market value, less any debt still owed on the mortgage, increases your net worth. You must understand what lenders are looking for when borrowing to purchase an investment property, such as barring gifts for use as your downpayment, making your available equity to invest a much more valuable resource.
Using debt to expand your potential or leveraging your real estate holdings, you can withdraw this equity to invest in real estate to build wealth and increase your monthly cash flow. For example, if your home is worth $400,000 and you have a debt of $200,000, there is $200,000 available for investing in real estate. You gain net worth through appreciation on your investment properties as your monthly cash flow improves.
Savvy investors know that by repeating this process, you can build a solid portfolio to provide financial security throughout your golden years. In addition, through careful planning and due diligence, you can build a portfolio that will hold long-term value when you have equity and a golden retirement to look forward to through well-managed real estate investments. So read on as we explore how to use your equity to invest in Ohio and California real estate. Please note that this article is for informational purposes, not financial or legal advice.
HELOC
A home equity line of credit is a revolving line of credit. You can borrow up to 80% of the home’s value. Of course, you must perform due diligence when considering your potential investment options to mitigate risk. Professional investors like those at Homesmith Properties work with a full-service in-house team of industry specialists saving investors like you time and money through internal efficiency. The professional investors at Homesmith Properties and their team quickly jump into action. At Homesmith Properties, we handle deals from the inspection to the closing table and property management. When you have equity to invest, working with Homesmith Properties makes investing in Ohio and California real estate easy.
Home Equity Loan
A home equity loan is typically a fixed-rate loan of between five to 30 years which is paid to you in one lump sum, enabling you to use your equity to invest in Ohio and California real estate.
Professional investors like those at Homesmith Properties know the red flags and can help you avoid unnecessary and costly mistakes. The professional investors at Homesmith Properties can help you see green flags instead when you have equity to invest.
Refinance
Refinancing, or acquiring a new loan for a greater amount than you previously owed, is another way to use your equity to invest in Ohio and California real estate. Professional investors like those at Homesmith Properties have years of experience working with investors. The professional investors at Homesmith Properties know how to knock down any hurdles that stand in your way when you have equity to invest.
Homesmith Properties
The best way to use your equity to invest in Ohio and California real estate is by working with professional investors at Homesmith Properties. Talk to one of our pros at Homesmith Properties today without any obligation about how to invest your equity. At Homesmith Properties, we are happy to answer your questions and address any concerns about getting started, no matter what obstacles you believe may stand in the way. And don’t forget to ask about our current inventory of the best investment properties available in Ohio and California. The professional investors at Homesmith Properties can help you run the numbers and assess properties to make the best choice and bring the highest and most secure returns on your investment dollar. At Homesmith Properties, we are passionate about helping other investors succeed because when our investors succeed, we succeed. So call Homesmith Properties at 1-833-HSPROPERTIES (477-7673).