Refinancing Real Estate Investment

MDC

This Simple Technique Can Help You Get Your First Investment Property

And Then The Next And The Next...

Refinancing Real Estate Investment is one of the best ways to begin real estate investing and keep progressing in your freedom steps with property investing.

If you are just starting out one of the best ways to get the money you need is to use the existing equity you have in your home. The best thing about refinancing real estate investment is that it allows you to get started without having to find out of pocket money for the property deposit and purchase costs.

You do this by first refinancing your home.

There are two ways you can go about refinancing real estate investment property:

Use your home or other property to secure a loan for the next property.
This is where you make a specific proposal to purchase a piece of real estate investment property using your home to secure the difference between the purchase price and the banks LVR (loan to value ratio) policy.

This will end up in your home being cross collateralized with the associated future difficulties that can lead to.

Request your bank of choice to set you up a home equity Line of Credit.
This is where the bank agrees to loan you any amount up to the limit determined by the available equity ou have in your home.

When refinancing real estate investment a cross colllateralized loan is the easiest to set up. It is probably the avenue that the bank or financial institution will assume you want to do it, but if you want to build a substantial real estate based portfolio, then request a line of credit be set up for you.

Then you will be able to access the money with ease and at your convenience.

For other advantages of a home equity line of credit or a line of credit generally refer to the HELOC page:

Lay the Foundations for Real Estate Investing Success

For the first investment property or maybe even the first two peices of investment real estate, a cross colllateralized loan is the easiest to set up. It is probably the avenue that the bank or financial institution will assume you want to do it, but if you want to build a substantial real estate based portfolio, then request a line of credit be set up for you.

Then you will be able to access the money with ease and at your convenience.

For other advantages of a home equity line of credit or a line of credit generally refer tothe HELOC page:
Home Equity Line Of Credit

A brief outline of the specific advantages when refinancing real estate investment are that you can start with little on no money of your own and as equity builds you can continue with your refinancing real estate investment properties and purchase more.

In this way Your asset base continues to grow, and it can all be funded by your growing equity base.

The way this works best is to always plan on holding your investment properties long term. If you adopt that attitude and ride out the occasional volatility of thte market then you are almost guaranteed success.

When refinancing real estate investment it is important that your first properties be new, so that you can claim maximum tax deductability for depreciation and expenses. You will need competent advice on this for your particular country and area.

See my other pages for tips on how to best set up your financing and reducing our tax burden in the asset building stage.

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Wednesday, September 23, 2009