How to Find Money or Capital that you didn’t know that you had. So many times we’d think we have no money. I can’t invest in Real Estate? I don’t have any money or I can’t start a business. I don’t have any money. I can’t do that. I don’t have any money. So, one of the ways, and the means that we like to do, is we like to show people and teach them, empower them. How do you find money that you didn’t know that you had?
One of the things is, that many people don’t realize that there’s money sitting around, that they have just kind of tuned out of. Sometimes it’s a safety measure. Sometimes there’s an education thing. And one of the easiest, fastest, simplest ways is, equity in your homes. So, for instance, right now, everybody is hearing about home loans, at an all-time low. One of our friends just got a loan for 2.875%, unbelievably low rates. A lot of people don’t realize, is that the equity that’s in your house, you can tap into today. You don’t have to wait until you sell it. And they’re two ways that you can do it. Either one, you can go out, and just get a home equity line of credit, against that. We have in our area, several local Credit Unions, any of your local institutions are going to be better than a large online banking institution.
And they’re generally better than for instance, a Chase Bank or a Bank of America, because they’re not big and commercialized. So they want their money to stay locally. They know the market a lot better. So you generally get better terms, and rates from them. But you can go out and get a Home Equity Line of Credit, and you could turn around, then utilize those funds in a number of ways. So for instance, if you have high credit card debt, you could use it to pay off that credit card debt, your interest rate on a home equity line of credit is much lower. And you’re actually going to pay down that balance faster, if you keep making the payments. So those of you looking at Dave Ramsey’s stuff, that’s the way to do it.
Others who maybe don’t necessarily have debt that they’re looking to pay off they could be utilizing those funds, to then turn around and invest with. So for instance, if you get a Home Equity Line of Credit, let’s just say conservatively, it’s at 5%. You get a Home Equity Line of Credit at 5% and say it’s $50,000. Okay. Then you turn around and you take that $50,000, and you invest it with company like American Made Home Solutions, into one of our Multifamily syndications, or even our Single family renovations we have rates in terms that differ depending on every project. But some of the projects you can be getting a 12% return. So for instance, you’re paying 5%, but you’re getting 12%. Well, that 7% difference, that’s money in your pocket. That’s money that you just made off of money that you didn’t know that you had, because it was sitting in your house, we call that lazy money.
Okay. Now the thing is not to just go get this Home Equity Line of Credit, and do nothing with it. Or not to just go get it and blow it, go buy yourself a new boat or something like that. Boats and things are nice. Yes, but there’s no return on that investment, other than, pleasure, and time, and such. We’re talking about, making your money work for you. So we’re looking for ways that, kind of lazy money situations. The other option that you could do is a refinance. Because rates are so low, refinance to a lower rate,if you wanted to pay your house off faster, it’s a great way to do it. Because you’re dropping your rates so much lower. And if you keep your payment where it is, you’ll pay your note off that much faster.
Or if you choose to drop the mortgage loan down, that might just give you the cushion. If things have had to tighten up due to COVID, it might give you a cushion that allows you to feel less stressed during these times. Another thing that people don’t often stop to think about is, you’re able to use credit in a way that you can access it. That’s for another article, but that is a possibility and I can let you know more about that. So one of the other things that people don’t often think about is their retirement. Now you think, well, wait, that money is for retirement. If I use it, then I won’t have it. Not true. The key to using retirement, is using it in a way that it actually brings a return. So that all you’re doing is you’re directing your retirement.
If you would like to know more about how to find money you didn’t know you had, then reach out to us today and schedule a time to talk about your specific situation. If you are looking for better or more opportunities to invest in real estate backed assets, then click here to get started.
