Today’s first caller has access to some untapped equity. However, he’s concerned about the high prices across the board in all markets. Should he tap into his equity anyway? That’s the first question I’m answering on today’s show!
On this episode of Investing in Real Estate Investing, I’m taking three of your questions from my voicemail inbox. We’re going to dive into topics like utilizing equity, the snowball method, and the best way to invest $100,000. Please join me for this Q&A episode!
On this episode you’ll learn:
- How to decide if you should utilize your home equity.
- How to rinse and repeat with your investments.
- The best way to use $100k for investing in real estate.
- And more!
How to Decide If You Should Utilize Your Home Equity
If you’ve been listening for any length of time, you know that I’m a huge fan of utilizing equity. If it’s just sitting there, that’s a great resource you can use to start building wealth. Yes, prices are high right now but interest rates are low. If I were in this situation, I would pull that equity out and reposition it in a tax friendly, landlord friendly rental market.
How to Rinse and Repeat with Your Investments
The idea of the snowball method or the BRRRR Method is to use your existing investment to buy the next property. There are a few ways to go about this when you’re trying to grow your portfolio. First, you could use the cash flow from your first rental to buy the next. Another idea is to build up equity and use the banks’ money to expand your portfolio.
The Best Way to Use $100k for Investing in Real Estate
If I had $100k to invest in real estate, I would put two down payments on our new construction rental properties in Texas. Texas is the most landlord friendly state, and the properties are entirely new with tenants in place. If you’re interested in going this route, my team would be happy to chat with you about your options. Book a free call here.
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Episode Resources
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The War on Small Business by Carol Roth
Doing The Math on Rental Properties (IRR)
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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