Q&A: What’s the First Step in Utilizing my Home Equity? – Episode 811

If you have untapped home equity you want to access in order to invest, what should your first step be? That’s the first question I’m answering on this Q&A episode of Investing in Real Estate!

On today’s Q&A episode, I’m taking three great questions on using home equity to buy rental properties, how to build your portfolio beyond the 10 mortgage limit, and how to use a HELOC as a down payment. Click play to hear my answers to your questions!

On this episode you’ll learn: 

• How to take action on utilizing your home equity.
• Ways to grow your portfolio beyond the 10 mortgage limit.
• How to use a HELOC as a down payment for a rental property.

How to Take Action on Utilizing Your Home Equity

If you want to use your home equity to build wealth, the first step should be talking with a banker. We typically recommend trying your luck at small local banks and credit unions first. They can usually offer more competitive interest rates! Once you are approved for the line of credit, you can either use it as a down payment or to purchase a rental property outright.

Ways to Grow Your Portfolio Beyond the 10 Mortgage Limit

There are plenty of ways to buy rental properties if you’ve hit the limit of 10 traditional mortgages. You could utilize a portfolio loan, pursue non-recourse financing, hard money, and more. I would caution you to not worry about this scenario too much, unless you’re faced with this problem directly. I usually find that doors will open up for you if you’re serious about growing your portfolio.

How to Use a HELOC as a Down Payment for a Rental Property

If you use your HELOC as a down payment on a rental property, you’ll need to finance the rest another way. You could use a traditional mortgage or pursue other options. Our team is trained to help you put together an investing strategy, so feel free to book a free call if you need help weighing your options.

Ask Me a Question at morrisinvest.com/clayton

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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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