Are you thinking of the best way to use money you earned from your home equity?
The idea of home equity is not to get the money and do nothing with it or blow it. It’s not the wisest of decisions to use on a boat or high priced vehicle that depreciates in value.
Boats and vehicles are great but when there’s no return on investment, other than pleasure and a nice time out— that money is not doing enough work for you. Here are some of the best ways to use money you earned in equity.
The Best Ways to Use Your Equity
Real Estate Investment
Real estate investment is one of the best ways to make your equity money work for you. The real estate market is not like the stock market where things go up and down. Even if the dollar collapses, people will still need a place to live and that’s why real estate investment is really game changer for producing legacy wealth.
For instance, if you get a HELOC and you invest those funds with American Made Home Solutions— our single family opportunities, executive rentals opportunities or multi-family syndications is a long-term investment with say a five-year cash out plan. During this time, you’ll be getting paid cashflow and when the property is finally sold or refinanced— you’ll get a 100% of your investment back with interest. Now that is making your money work for you!
Home Improvements
This is another great way to use your equity funds in order for it to work for you. Unlike buying a new boat, if you spend part of your equity to make improvements to your home, you’ll be increasing its value. This way you’ll get more equity in return and that’s your money working for you.
The catch however is to make sure that whatever upgrade you’re making is not only for the sake of aesthetics. Good examples of equity raising projects would be kitchen or bath upgrades, exterior siding, window, new roofs, addition of a garage, etc.
Looking for a profitable investment in real estate? Click here to learn more about our investment opportunitites
Pay Off High Interest Debts
This is one advantage that home equity offers. You may have taken a loan to go to college or do some other really important stuff. Since you get much lower rates on a home equity loan, you can pay off other high interest debts.
If your equity can help you consolidate a higher interest debt—why not! As long as you’re still making regular payments, you won’t have cause to worry.
Emergency Funds
Instead of regular loans and credit unions, if you are in bad financial shape and in dire need of money, your home equity can definitely bail you out. We advise that you solve short term needs until you can find you way out. But if you have the HELOC already set up it can give you peace of mind when you need it, you already have it.
It is always important that you first find out how much equity you have available before you make any plans. Then think of how best to use your equity. Using that equity into wise investments that will keep working for you. Do your best to always pay your mortgage to avoid going into forbearance because when that happens, you won’t be able to get future notes.
Also choose the best plan that’ll work for you. If you don’t know what that is, we’re happy to help you. At American Made Home Solutions LLC, we offer only helpful insights that help you secure your financial future. We’d be happy to connect with you. Send us your questions and thoughts or contact us here.
