Flipping is great, but what if you keep some? #realestate #wealth #short #shorts #shortvideo #tips

14 Sept 2023 · 1 min

Watch on YouTube

0:43

Short YouTube clip (Steve D Valentine) explaining how house flippers can retain rental properties and leverage built-up equity to raise capital — e.g., cash-out refinances, using properties as security for second liens funded by private investors, and aggregating multiple seconds to fund new purchases.

Questions this video answers

30%–40% equity

$50,000

10 rental properties

$50,000 each

$500,000 (half a million dollars)

Chapters

A lot of people get into the flipping game and they don't realize like the asset part of it because then let's go one step further. I have all these assets that have 30, 40% equity in them. Well, I can go pull that profit tax free in a cash out refinance, right? Still get your mailbox money. To still get my mailbox money, I can also use them as security for private seconds. So if you know, Jim has 50 grand to invest and I have a second mortgage deed of trust program, which I do, I can do a second lien on this with Jim's money. Jim's money is still secured in second position and there's still equity in the property. So that is another way to raise capital inside. So If I have 10 rental properties that I can go get 10 $50,000 seconds on, I now have a half a million dollars. I can go buy another house with.