I’m sitting in my home office looking out the window at huge flakes of snow falling. The scene reminds me of a phrase we used in some meetings we put on for friends and neighbors, and some their friends and neighbors as we started our real estate investment business in California. These people had observed some of the trappings of our quick success – ie new Corvette, new boat, new Mercedez, and they wanted to hop aboard the train. We talked a little about the economy and then outlined some of the basic reasons real estate was a sound investment. A frequent question was, “Where do I get the money?” My answer was often, “Unlock your frozen equity.” Then I would give them my personal example.
In 1967 we bought a new 3100 square foot, 5 bedroom, 3 bath home, 3 car garage home for $40,000. It had increased in value and in 1975 we refinanced it through our friendly banker. We pulled out around $37,000 and usedthat to live on, to start our business, and to buy rental properties. Even though values have dipped almost everywhere in the country many people still have equity sufficient to launch them into real estate investing. A HELOC (home equity line of credit) is something to talk about with your banker and it could be your launch pad to success. We can talk more about the types of HELOCs on the next post. Right now I want to get out and make a snowman.
Filed under: Investment Coaching -
Trackback
Uri