What you need to know about EQUITY

Today’s real estate investing term is equity.

Equity is how much money is left over in the value of a house, after all the loans have been complete.

Let’s say you have a house worth $200K.  You have a mortgage on the house of $100K.  That means you have an equity holding of $100K.

Once the mortgage is paid off, the value left in the house is the equity.

PRO TIP: Sometimes you can get a loan based on the equity of the property.  You can have a second mortgage or a home equity line of credit and use that money to fix up or purchase another property…disclaimer I am not a lawyer or CPA, please consult a professional before going into further debt.

Make sure you go to DFWTOP.com/words if you want to download 22 Real Estate Investing Terms you need to know. It’ll help you as a new real estate investor sound like a pro.