OfflineI started studying Dean's Real Estate books and website when I was 14, off and on since then, long story short: I moved recently and I lost over 1000 hours of notes/information in the move, no idea how but they're gone.
I understand that if you create equity on a property by raising the appraisal value of the home through repairs/renovations you can collect on that money without extending your mortgage. For example: you purchase a home for 50,000. The current appraisal value is 50,000. You put down 10% (5,000) as a down payment and put some work into it, lets say 5,000 in repairs, new floors, paint inside and out, new fence, landscaping, windows, doors, etc. You get it re-appraised and the value is now 75,000. You rent it out for cash flow. Next you want to take that 25,000 in equity you just created and use that as capital for your next investment. How EXACTLY can you do that?
I know this method is a huge tool that everyone can benefit greatly from. I haven't found any posts that explain this yet. Any information/insight would help greatly, thanks.
Eric Fontaine
When it comes to this strategy you are speaking about two things
re finance on the loan to do an 70-80 loan to value
Or you can do what is consider getting a heloc
Heloc stands for Home Equity Line Of Credit which is taking out a second mortgage on the property
A re finance is changing the original loan
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
Most banks have rules and stipulations so check with your mortgage provider ( I.E. Bank that made the loan in the first place and if they don't do it speak to another banker to see if they would be open into it )
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-