Real Estate Investment Shorts
Real Estate Investing Terms: Equity
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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.
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