Real Estate Investment to Build Wealth
if you have equity sitting in your property and you’re trying to find out how to get some cash for potential future investments, this video is for you. The point of owning real estate is obviously to have a home to live in… but probably the biggest benefit is the many ways it helps you build wealth using other people’s money. This is what banks do with our money all day. For example, if you have a home worth $500,000 and your mortgage balance is only $300,000, You can cash out up to 80% of your home’s value without selling it. This means you can take out up to $100,000 tax free and still keep $100,000 in equity in the home. Since investment properties only require a 15% down payment, that hundred thousand dollars can allow you to buy up to another $660,000 in investment real estate and have other people pay you’re your mortgage for you. Now you own over 1.1 million dollars worth of real estate by using the bank’s money that was just sitting in your equity. Let the equity grow and repeat!