What Is Equity?
Equity is the difference between the value of your home and how much you owe on your mortgage. By paying down your mortgage, you are increasing the amount of equity held in your home. Another way to improve equity is for the home’s value to increase after it is purchased.Matthew Scott can help you maximize the equity provided from smart property investments or leverage your existing equity into new income properties. With the right real estate investment strategy, you can use mortgage equity to improve your cash flow and find financial freedom!
Using Mortgage Equity For Your First Investment
Equity can be used by property owners to make their goals happen. While it’s not always the wisest decision to cash out, equity can be used to make you money. You just have to be smart about how you use it.Many people use mortgage equity on existing properties to get into income property investing. This can definitely work if the equity is enough to get a second mortgage property and cover any renovations that are required before it can be rented out or resold.If you do this, you’ll want the equity to be enough so that cash flow begins again quickly so that you can pay yourself back within a reasonable period of time. Matthew can work with you to figure out a financial plan and help you make the right decisions to increase your cash flow!Get Started
Making The Most Of Mortgage Equity
One way to profit from your equity, whether it’s an income home or the one you live in, is to sell the property. Although you’ll typically have to pay some fees associated with moving and selling, you still get the equity if you are able to sell your home for the market value or higher. If the value has gone up, what you take home can be a nice amount you can put into further investments.This is the basic premise of house flipping – taking a property of little value, turning it into a place someone could call home, and selling it for a profit. The renovations you put into the home raise its equity and net you a profit above what the mortgage and your restoration costs.
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Home equity isn’t free money, and there are many risks involved in using it. But it is a novel way of getting in on profitable investment opportunities and increasing your cash flow. If you have the right amount of equity but don’t know where to start, come to Property Investment Guru Matthew Scott. He can help you leverage it to make more property investments or to turn a profit on the home you already own!Contact Us