Ahh, your own private bank. Wouldn’t it be great? Working, well, uh, banker’s hours. Plenty of cash at hand when you’re ready to begin investing. At Empowered Investor Network, we’d like to point out there is a private bank you can use for income property investing you might not have thought about.
It’s called your home.
Yep, the structure you live in. You’ve got equity in there, right? Our average customer comes to us with about $300,000 equity in their home but don’t get discouraged if you don’t have anywhere near that much. We’ll show you how to start small and, before long, you’ll be creating the kind of wealth with real estate you only dreamed about.
Here’s how to calculate the amount of equity you have. Let’s say you bought a house for $350,000 and you’ve paid $175,000 on a $300,000 loan. A recent appraisal puts your home’s worth at $500,000. To figure out how much equity you could take out, subtract the amount owed on the loan from the current appraised value like this:
$500,000 – $125,000 = $375,000
This is why we say “Refi ‘til ya die!” You can cash out that $375,000 and use it to make down payments on several different income properties. Assuming you put 20% down, you could control investment properties worth $1.5 million. In case you aren’t aware, inflation is reducing the real value of your equity as long as it sits in the house. Get it out! Put it to work.
Call one of our investment counselors if you have any questions at all. 714-820-4200.
The Platinum Team
