3 Ways That You Can Leverage Mortgage Financing to Build a Real Estate Investment Portfolio

3 Ways That You Can Leverage Mortgage Financing to Build a Real Estate Investment Portfolio 🏠🏠🏠

Real estate is definitely one of the most important things that you will ever invest in. AND it can also be a useful means of increasing your financial well-being. 

If you're getting into the real estate game and are wondering how you can make use of investing in homes to improve your net worth, here are three ways you can successfully work towards a real estate investment portfolio that will make you proud.

1. Home Equity Line of Credit Loan 📁

Also known as HELOC, this is the type of loan where a homebuyer taps into the equity of their home while they are still paying off their mortgage. As the equity that has been paid into the home is available without the homebuyer having to apply for it, this allows those who invest in real estate to borrow against equity to renovate the property or pay for a deposit on another property. 

2. Pick Properties That Will Appreciate 🏠📈

It goes without saying that most people want to invest in a property that will increase in value, so as an investor you need to be especially careful about what you invest in. Since you may have problems paying all your property fees if the value of one decreases, try and be aware of future market trends and neighborhood hotspots. This means diversifying the properties you invest in and including a buffer in your payment plan so that, even if the market takes a turn, you can still pay off your amount owed.

3. Investing In Under Market Value ⬇️💵

There are few better ways to improve the financial feasibility of your investment portfolio than investing in a property that is under market value. Not only will you have an automatic gain with the purchase price, you will be able to invest that money into improvements in order to bump up the market price even more. While finding this type of property can be difficult for the newcomer, looking for neighborhoods with potential or properties that require little maintenance can be a good place to begin.

In real estate investing, whether through a home loan or purchasing a property under market value, there are surely plenty of ways to bump up your net worth.  

If you're currently considering investing in real estate but don’t know where and how to start, come 📞 book a coaching session with me and we’ll explore your options together!