While real estate investments are not the most liquid of assets, there are times where sufficient equity in an investment property has built up and can be used to raise cash.
Equity builds over time and interest rates may drop, so it is often in the real estate investor’s best interest to access that cash and put it to work to further grow or generate additional income. Conversely, cash from a refinance might be used to pay for a large expense or purchase.
Here are 4 compelling reasons to access the cash equity in a rental property via a refinance option.
Purchasing Additional Investment Properties
Accessing the equity in investment or rental properties is a clear path to exponential financial growth and wealth accumulation. One of the fundamental tenants of any successful investment is finding ways to leverage cash to earn the highest possible return. Using a refinance to access cash in a property and use that cash to purchase additional investment properties is a sound investment approach.
Doing Home Improvements to Increase Rental Income, Property Value, or Both
There may also be opportunities with existing properties to maximize their value or cash flow. Using a cash-out refinance to make repairs, cosmetic upgrades or improvements might significantly boost rents or home values.
Paying Down Debt
As with any business, paying down debt or reducing expenses has the same effect on the bottom line as increasing revenue. Net profits should rise as debts are paid down. Using cash from a property to pay down mortgages or other debt instruments can significantly boost net worth.
While a strong business mindset might always be looking for ways to maximize return on investment and how best to deploy assets (in this case cash equity), there comes a time when investors need to step back and enjoy the fruits of their labor. Cash from a refinance can be used for travel, to purchase a vacation home, or fund any number of lifestyle choices.
Whatever the reason for accessing the equity in a property, investors will want to get the most competitive rates and best service possible on their loans. United Direct Lending’s network of lending partners ensures their customers get the best product, rates, and price for any refinance.
To get a quote for a cash-out refinance loan, please click below or call United Direct Lending toll free at 1-888-249-7960.
Our team of fully licensed mortgage loan officers is available 7 days a week to answer any questions and guide you through the lending experience.