Unlock Your Real Estate Future: Which Stage Are You Truly Playing At Right Now?
Dave:
I mean, you can kind of think of it like a credit card. You’re basically only paying when you use the money that you are tapping. And so oftentimes what happens to real estate investors is you have this very fortunate problem where you build up a lot of equity in your properties, which is great, that’s adding to your net worth, but sometimes it gets a little bit trapped in those properties and you can’t use it. Then that net worth that you’ve built up to go acquire new properties and to scale your portfolio. And some people choose to either sell those properties, some people choose to refinance those properties, but a line of credit, I agree with you, Tony, is sort of this underrated way where you can hold onto that property, keep the equity there, but then use that asset with a bank to borrow against it. And you can use that either to acquire new properties or to renovate properties too. To pay for construction is also a common way that it is used as well.
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