With the current improvement in the California real estate market it just might be a good time to look into using the equity in your home to purchase a second property. The equity in your home can be used to get the down payment money to purchase that new property.
Many people have suffered from the mortgage meltdown that began in 2007 and from the overall real estate recession by losing their homes. So many people have been put in the position of going from being property owners to being renters. This recent event has caused an imbalance in the supply and demand ratio for available rental properties currently on the market. This has caused monthly rental amounts to increase and has provided the opportunity for real estate investors to take advantage of higher monthly rents. With current mortgage interest rates (now at historical lows) triggering lower monthly mortgage payments, the definite possibility exists for positive monthly rental net income.
Most institutional lender are not currently providing financing for cash out which many potential homeowners need in order to purchase an investment property. Private real estate financing does not live by the same constraints that the big banks or large institutional lenders are required to operate under when making lending decisions.
While the interest rates for private real estate financing are higher than traditional financing sources the opportunity that the current real estate market is offering far outweigh any additional interest rate expense.
With one call and a few minutes over the telephone our company can calculate the costs associated with purchasing a second property and determine the ongoing monthly expenses from owning and managing a rental property. We can show you the amount of monthly rental income you can earn each and every month which would be in addition to any increase in property values leading to an appreciation in your net worth.
The old adage that “a rising tide lifts all boats” apply so perfectly to the real estate market. Owning one property when the real estate market goes up will get additional equity resulting in increased net worth. But when two properties are owned the owner gets a multiplier effect of having two properties increase in value leading to increased equity in both properties and an exponential increase in net worth for the benefit of the property owner.
It is so true two is better than one!!!!