If you’ve always wanted to be a real estate investor but figured you don’t have enough cash, look at your home! If you have equity in your home, you can use it to invest in real estate. Lenders don’t tell you what you can or can’t do with your equity once you have it and it can be a great way to start your real estate investment portfolio.
Here’s how it works.
Figure out How Much Equity you Have
First, you must determine how much equity you have in your home. An estimate is okay too. You can use sites like Zillow or talk to a local real estate agent about your home’s value. It can be a rough estimate.
Next, find out how much you owe on your mortgage. The difference between these two numbers is your home equity.
If you have at least 20% equity in your home, you’re able to borrow anything beyond that and use it to invest in a home.
Apply for a Cash-Out Refinance
A cash-out refinance helps you tap into your home’s equity. You borrow more than you currently owe and any difference between what you owe, and your new loan amount is yours. We have a large variety of cash-out refinance options to help people in almost any situation get their hands on their home’s equity.
Close and get your Cash
Once you close on your cash-out refinance, you’ll have your cash in hand within 3 business days when the loan funds. Once you have the cash, you can start looking for a home to invest in or if you’ve already found one and just need the money to put down, you’re on your way to owning an investment property!
Use your Equity as a Down Payment or to Buy a House Cash
Depending on how much equity you have and what type of home you invest in, you can use the cash as a down payment and borrow the rest or buy the home cash.
Investing in a home with a down payment allows you to leverage your investment. Say for example you have $100,000 to invest in a home, but you buy a $300,000 home. You invest in a much larger investment by taking out a mortgage.
At Save Financial we offer a large selection of investment property mortgages, making it easy to get the financing you need to buy your investment property.
Investing in a rental property can be one of the best uses of your home’s equity. You take your money and grow it in another investment that can earn you monthly income plus capital appreciation.
It’s not hard to get financing for a rental property or to tap into your home’s equity. At Save Financial, we can help you with both options, helping you to achieve your dreams of starting a real estate portfolio by using the cash you already earned in your primary residence.