Investing Your Equity
Hi fellow investors,
I'd like to hear from those who have refinanced their home(s) and used the remaining equity to invest, getting 13% and higher return on the invested amount. One such company that does this is called National Consumer Mortgage in Orange, CA. Has anyone heard or dealt with this company?
Is this a form of note investing? (Sorry if I posted in wrong forum.) And, are there certain economic seasons where this type of investing is wise to do? I'd love to hear from the experts....................thx!
i wouldn't consider myself an expert, however i have been using my equity to buy property, and i only have three thus far (within a 2.5 year period). i initially bought a condo and paid it off within a year and a half and by that time it was worth double what i paid for it. i then cashed out 90% of the equity and used some of that money to pay cash for another condo. since i got a great deal on the second condo (worth nearly double what i paid for it) i cashed out 90% of the equity on it and with all of that equity money sitting in the bank, i used some of it to put down on a house. i still have some money left over (minus the 11k i just spent on a sportbike) and all of the rent i'm bringing in is paying for my equity loan paymenets and mortgage payments. i am now looking to buy property #4 with the equity i now have in house #3. i call this a "perpetual equity model". this will only work long term, though, if you can get good deals and if your rental income will be equal to or greater than your total mortgage/equity payments.
Thanks for your reply....
You might want to consider a Home equity line of credit instead of a refinance. That way your money is there when you need it. If you don't need it, you don't pay any interest. If you refinance, the money is sitting in an account waiting for it to be used.
Also, you may be able to get a non owner occupied loan for the house that you are buying....