Do you know how to create equity in a property? #realestate #realestateagent #tips #shorts #short

12 Sept 2023 · 1 min

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0:52

Short YouTube transcript featuring Steve D Valentine explaining how to create equity in real estate by using lender knowledge, hard-money financing, and a rate-and-term refinance (not a cash-out). He describes converting borrowed funds into $100,000 (about 30%) equity without a personal down payment and achieving positive monthly cash flow (~$600).

Chapters

We want to take our skill set in real estate and go create and find the equity that I need for the down payment. Most people don't grasp that because it's kind of a reverse scenario. If you understand the financial literacy of how the lenders operate, what they want to see for seasoning and how they want it to look, you can walk it all the way through, just like we did on this one. And because I did hard money on this and it has a note and deed of trust on it, I can do a rate and term refinance, not a cash out. There's $100,000 or 30% equity. And now that is my down payment. So I'm just refinancing the 220 grand that I borrowed from the lender. I'm not putting anything down on this. And Now I have $100,000 equity and I own the property and.
I have nothing in it. Just made 100 grand off of just doing what you do. And then not only did you make 100 grand in equity off of doing what you do, you now have an opportunity to take another 100 grand and go do something else with it if you want to.
Correct.
But now you have something that's going to pay you $600 a month, positive cash flow.
Correct.
And you didn't take a dollar out of your pocket.