Do you know how to take your current investments and leverage them to purchase more?
I’ll give you a hint. You don’t have to sell them.
“Leverageย uses borrowed capital or debt to increase the potential return of an investment. “
LISA SMITH @ Investopedia
Real estate is the most common way to leverage your investment wither with your own money or through a mortgage.
Let’s work with a real example.
Back in 2018 our client purchased a property through us for $1,000,000 by placing a down payment of 20% worth $200,000.
The property was then rented out for the price of the monthly mortgage until this year, 2021. He reappraised his property and got the value of $1,300,000.
With this information, he went to the bank to have the property refinanced and the bank lent him another 80% Loan to Value which equals $1,040,000.
His existing mortgage is $750,000 at this point, and his new mortgage is $1,040,000 and took out the equity of $290,000.
With this equity we found him a second property worth for 25% down payment of a $800,000 property which would only be $200,000.
The remaining $90,000 was then used to purchase a third property; either a presale or condo as another investment.
This is how you make money investing in real estate without selling the property you already have.
Hold onto these properties, let the equity build, then leverage it out.
If you want to learn more how to make money in real estateย contact usย today with your questions.
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