8 Ways to Use Your Home Equity to Buy a Rental Property in 2027

Ashley:
Today we’re going to show you exactly how to use your home’s equity to buy another home, an investment property.

Tony:
You could be sitting on your next down payment right now. So if you’ve owned your home for five years or longer, there’s a good chance it’s worth more than what you owe. And that difference is the equity you can actually put to work.

Ashley:
The problem is that most homeowners don’t know how to access it or they’re nervous about borrowing against the house they live in. And that nervousness isn’t uncommon. Use the wrong way, home equity can put your home at risk. Use the right way, it can be the thing that gets your rental property portfolio off the ground.

Tony:
And today we’re breaking down eight ways to use your home equity to buy a rental property in 2027, which options makes the most sense for your situation and the mistakes to avoid so your equity builds wealth instead of simply sitting there.

Ashley:
Welcome to Real Estate Rookie. I’m Ashley Kehr.

Tony:
And I’m Tony J. Robinson. And with that, let’s get into option number one, which is a HELOC or a home equity line of credit. So let’s just talk about what a HELOC is. So a HELOC is a line of credit that uses your home, typically your primary home, as collateral for typically a really large loan. And the way that these HELOCs typically work is you get some period of time where you’re only paying interest on the money that you used, and then there’s some repayment period there afterwards where you have to actually work on paying down the principal. So I’ll give you guys a quick example. Let’s say that you have a house and just for easy math sake, let’s say that the house is worth $100,000 and you go to your local credit union and they say, “Hey, we’ll give you a HELOC up to 90% of the value of your house.” So they’ll say, “Hey, you can go up to $90,000.” And let’s say that your loan balance is $60,000.
So the credit union’s going to give you a line of credit up to 90%. You owe 60 so you can access that $30,000 difference as a line of credit. So that’s the big picture of how they work. Ash, have you pulled the HELOC on any of your properties before?

Ashley:
I have. I actually have three active HELOCs right now. So I guess technically only one of them is an actual HELOC, a home equity line of credit, and the other are commercial mortgage lines of credit because they’re investment properties. Because a lot of times banks will only lend to you a home equity line of credit if the property is your primary residence.

Tony:
Yeah. And I actually just pulled my first HELOC several months ago on… I’ve only had one primary before we just moved. So we pulled the HELOC on that primary before we left, and that was my first time going through the HELOC process. But the benefit guys of the HELOC is that it allows you to tap into your equity without replacing your current mortgage. And depending on the terms of your mortgage, that could be a really, really good thing. For us on our primary residence, our interest rate was 3%. I don’t want to get rid of that 3% loan with a refinance. So the HELOC allowed us to tap into that without messing with this great 30-year long-term debt that we have in the primary residence.

Ashley:
Now, there’s actually a couple ways to use a line of credit to actually invest

Tony:
In

Ashley:
Real estate. So one of the benefits of it is that you are only paying interest when you aren’t using it. So if you’re not buying a property or you’re not ready to buy yet or you haven’t found a deal, you are not paying any money on that line of credit, any interest on that. So that’s a huge benefit where if you went to go and refinance, you would be paying the interest because you’d be paying those monthly payments every month once you borrowed the money. So the line of credit has that benefit. Some ways to actually fund your deal is you can, depending on how much money you have on your line of credit and how much your houses cost in your market, you could take that line of credit and it could fund the whole deal. When I was buying 20 to 50 to $80,000 duplexes, that’s what I did.
I would use my line of credit to purchase the whole property with my line of credit. Then I would go and refinance with a bank after I already owned the property. This gave me an advantage in making offers because I was able to make a cash offer. Even though it technically wasn’t cash sitting in my bank account, I didn’t have to go to a bank and get loan approval to purchase the property because I can do whatever I want with that line of credit money. And so that was a huge advantage. You could also use it to fund the rehab on a property. And then the last kind of scenario is you can use it to fund the down payment on the property too, but make sure you have a clear plan to actually pay back that money no matter which scenario you’re using.

Tony:
My preference for the HELOC is to use it in a short-term basis if you’re using it to help build your rental portfolio. And I think the reason I like it on a short-term basis is because one, the interest rates on the HELOC are not fixed. It’s kind of like a credit card where your interest rates kind of go up and down and debt gets more expensive as interest rates go up. And we’re seeing that right now where interest rates have been elevated for quite some time. And it’s not like a regular mortgage where once you lock it in, you’re locked in for three decades. It shifts and adjusts with time. And so because of that, if you underwrite your deal today and say you use it to cover the down payment and now your rental not only has to cover its own expenses and mortgage, but also this HELOC payment, if rates spike, well now does that deal still make sense?
But if you’re using it in the way that Ashley just mentioned, I think that’s my favorite way. And Ash, one of my first introductions to real estate investing, I was at this meetup here locally in SoCal, and there were these three partners who were buying properties together and they were burying properties and each of them took a big HELOC on their house. And with those HELOCs, they were doing exactly what you said where they were paying cash, covering the purchase and the renovations. Then when they would refinance, it would all pay back their HELOCs. And they scaled pretty quickly with their portfolio just by doing that one thing to burn the true sense of the word. And a great thing is that once you pay the HELOC back, now you can go recycle those funds again into the next deal. So I personally really like the HELOC in a value add situation where you can recycle that capital into the next deal.

Ashley:
Now let’s move on to number two, a home equity loan. So this is similar to a home equity line of credit in the sense that it is a second lien on the property. So you have your first mortgage on the property and then a home equity is going to be your second lien on the property. So this is a second mortgage essentially. So what you can do is you go to the bank, you say, “I owe $300,000 on my house, but I think it is worth $500,000.” The bank will tell you, “Okay, we’ll do a home equity loan up to 80, 85% of the appraised value of the home.” So basically they take that 85% of the 500,000 and then they subtract what you already owe on it, that $300,000, and then that’s the amount. Whatever’s left is the amount of the line of credit that they will give you, obviously based on your debt to income and reviewing your own personal credit and financial history to get approved for it.
But the difference is it’s an actual loan. So you’ll get the full amount upfront and then you’ll have monthly payments just like you do on your first mortgage. One thing I should add is when you’re doing a line of credit, sometimes the line of credit, you can also transfer that. I don’t know what the right technical term is, but that can actually turn into a home equity loan in the sense that you can no longer pull off of it and you have the monthly payments every single month. So they’ll take whatever the balance is that you owe and they’ll amortize it over X amount of years and then you have that payment every single month for that. So home equity loan, those are the differences between the two is that the line of credit, you can pull when you need to use it, you can make interest only payments on it.
Where if you’re doing a home equity loan, it’s not pull as you need and then pay back and use it again. It is you’re getting the full amount and then you’re making the monthly payments amortized over so many years with an interest rate attached to it.

Tony:
Yeah. And I’m trying to think of when I would use one versus the other. The benefits of the loan is that it is a fixed, it’s more like a true second mortgage where it’s fixed over whatever term, whatever repayment term you have. Whereas we talked about the HELOC is variable. But the downside to the home equity loan is that as soon as that loan closes, you’re immediately making payments on it. So even if you haven’t deployed that capital anywhere, there’s still a cost associated with you even having pulled that loan. So you really got to put that money to work. So for me, I feel like I would probably only go with the home equity loan if A, I knew for certain where that money was going before I even pulled it. And B, if it was going into something that was like, I’m trying to think of from an investment perspective where I might want to deploy it.
I guess if it was like, “Hey, I have this property and I’m going to fund a bunch of renovations and I know that when the renovations are done, I’m going to be able to cover not only the first mortgage, but the second home equity loan as well and still have more than enough cash flow left over.” That I think would be the only time that I might use a home equity loan as opposed to a line of credit.

Ashley:
Yeah. And I think for the home equity loan, yeah, you can get the fixed interest rate for at least a period of time. So that’s definitely a benefit where it’s usually a line of credit. Maybe you get your introductory offer where for the first six months of it, it’s set at 4% or whatever, and then it goes to a variable rate where a lot of times with the home equity loan, you can get a fixed rate for some amount of time. I think probably one of the benefits of the home equity loan is a personal preference as in you’re not good at budgeting, you’re maybe not good at managing your money. You probably would be tempted to just pay the minimum interest only payment on a line of credit and you need that accountability to actually pay back some principal. So maybe if you know that you’re not that great with money, that this would be a great way to keep you on track to know that you’re actually going to be paying off the money that you owe instead of just paying that minimum payment for the interest only that’s accruing on the line of credit too.
So it could be a personal preference, I guess.

Tony:
All right. Now the next strategy is one that a lot of investors use to pull out a big chunk of cash at once, but there’s a cash attached to it. So we’ll explain that right after a quick word from our show sponsors. All right guys, welcome back. The next one up is one that you’ve probably heard of and it’s a cash out refinance, cash out refinance. So if you think about the HELOC, the HELOC is something that’s there in addition to your original mortgage. So we’re tapping into that additional equity by putting this line of credit on top of that equity that you have access to. A cash out refinance is the opposite where we’re actually replacing the current mortgage with a new mortgage and then you get to take the cash out as a difference. So if we go back to my example earlier of the $100,000 property where you owe $60,000, on a cash out refinance, you would actually replace, you would completely pay off that $60,000 original mortgage and maybe you put in place a new mortgage at $90,000.
And now you’ve got another 30-year fixed mortgage for $90,000 that you’ll start paying down with a new rate, all those new terms, and you get to keep that difference between the old mortgage that paid off and the new mortgage you put in place, which is $30,000. So between both the HELOC and the cash out refi, you’re able to access that 30K. The difference is what does that repayment look like? So with the cash out refinance, it’s another new fixed loan. You only have one loan and you’re making one new payment. Now generally, I guess depends on how it goes, but right now for a lot of people, if you’re doing a cash out refinance, it means your rates could be going up. But there are a lot of people who are doing cash out refinances when interest rates were really low and they were actually coming out ahead because maybe they were refinancing out of a 6% loan down into a 3% loan.
That’s a great time to do a cash out refinance. But if rates are higher today than what they were when you got your original loan, it’s a determination you have to make for yourself.

Ashley:
The BiggerPockets Money podcast did an episode on this and I can’t think of what they called it, but something about the middle class trap or something. And one of those things was that you are trapped in your house because of the interest rate that you had a 3% interest rate and you don’t want to sell your property because you can’t afford as much as you got with this property with rates being higher. So you can’t even get really a nicer, better house with having the same payment or lowering your payment or anything like that. It would just cost a lot more. And then you have this equity that’s trapped in your house because you don’t want to go and refinance your property because you don’t want to lose that interest rate. So it’s really interesting to think about, but that could definitely be someone’s scenario.
And I think you have to shift your mindset on that as in just because your interest rate is higher doesn’t mean it’s actually a bad deal, especially when we’re talking about investment property and not necessarily your primary residence. But even if the interest rate is higher now, the deal still makes sense. So for example, if you’re going to go and refinance a rental property because you have this opportunity to purchase something else, if you were going to make more money, have a greater return on your investment, but you have to now get a 7% interest rate because you need to do the cash out refinance to use that equity, if you’re going to make out in the long run or even in a short period with these two properties instead of just your one, who cares if it’s a 7% interest rate if you are going to make money off of both of these deals from doing that cash out refinance?
So I think that’s a lot of mindset adjustment that needs to be made that just because you’re paying a higher interest rate doesn’t mean that you shouldn’t do it or it’s a bad deal or you’re getting ripped off by paying so much interest because it actually funnels you to get to another deal, another opportunity that’s actually going to

Tony:
Make

Ashley:
You more money and it’s definitely worth it.

Tony:
All right, let’s talk about number four. And this is a line of credit on a rental property. And the HELOC that Ash and I talked about earlier on, typically most banks will only give that to you on your primary residence. That’s why a lot of guidance you hear on the internet and just from other real estate investors is if you have a primary, pull a HELOC before you move because the loan terms simply state that it has to be your primary residence when the loan is pulled, but it doesn’t mean that you can’t move forever as long as that line of credit is open. So as long as you live there when you pull the HELOC, do that. The line of credit on a rental property doesn’t have that same requirement that it has to be your primary residence. Now the mechanics work the same way, but the bigger caveat is that a lot of banks don’t offer this.
The credit union that I used to get the HELOC on my primary, they don’t do HELOCs or lines of credit on rental properties. They only do it on primary residences. So you’ll have to shop around a lot more to find those options. Maybe it might be other local banks, might be other credit unions that are more likely to offer these than some of the big national lenders that you’re aware of. But the benefits are the same. You get all of your equity with this variable rate that you only pay on what you’re actually using. They’re just a little bit harder to find.

Ashley:
Yeah. I actually had to go to, for my first one was a small local bank that did it and they called it a commercial mortgage line of credit. So it wasn’t even called a HELOC and they would put it onto your investment property. And then the second one I did was actually, I don’t even remember how I got connected with this bank. I think it was through a meetup or something like that, but it’s essentially not even in my area. Probably their closest branch they have is pretty far away, but they work specifically with investors and I did that. But all of my properties had to be in LLCs to actually get this HELOC on the investment properties. They couldn’t be in my personal name. So I had three properties and I had to change them into LLCs in order to get the HELOC on it.
And then one thing that I did not expect was the insurance requirements for the HELOC. So two of the deals I had purchased, I purchased with private money. And so there was really no insurance requirement by any bank that had to be on there. So I just had my basic landlord policy with no crazy things. But when I went to go and get the commercial mortgage line of credit, it was way more coverage that they actually wanted to see. And so my premium actually went up a lot. I think it went up between the two properties, $1,000 for the year between the two, which I mean, it’s not a huge amount, but still was something I was not expecting. So just be careful of that too, as you’re talking about all these financing options as to understanding the insurance requirements by the banks too, when you’re going through and figuring out your financing too.

Tony:
Ashley, just out of curiosity, how did you find that lender for the portfolio line of the commercial line of credit?

Ashley:
So my first one was just the small local bank that I used for my very first deal. I just worked with the commercial lender on my first couple deals and then I would just talk to them like what are other options I have and things like that. And because I

Tony:
Had

Ashley:
Bought two of the properties with the private money lender, it was a note payable. There actually wasn’t a mortgage filed and there technically wasn’t a mortgage. It was just a note payable that I owed this person money. So there was technically no collateral, no debt, no lien on the property. So I was able to go and get first

Tony:
Position

Ashley:
Line of credit on this property.

Tony:
Interesting. Yeah.

Ashley:
And then the other ones, I’m trying to think. Actually, I think both of them, both of the banks that I use were both first lien positions because I owned the other one just free and clear that I had purchased in cash. So that’s maybe another thing to look at too as to what their requirements are if they’ll even put a second position mortgage line of credit because that I don’t know. But first one was just the bank that I always worked with. They had that as a product that they offered. I still have it today. And then the other one, I just met the guy at a meetup and it was not that much longer after I did the other one. So I knew that it was a product that was out there. It was just finding the lenders. But I think a great starting point is going to biggerpockets.com/lenderfinder.

Tony:
So I just want to break that down for the rookie audience so they understand the benefit or the importance of what you said. You said that the private money lenders just had notes payable. So on paper, there was actually no lien against the property. So this new lender was actually able to go into a first lien position. So the importance of that for the folks that are listening is that when you have multiple lenders, each lender puts a lien against property, which basically means if you don’t pay that person back, they have a right to go and take the property back from you. But the way that lien position works is that whoever’s in first lien position gets paid back first. Whoever’s in second lien position gets paid back second. Whoever’s in third lien position gets paid back third, so on and so forth. So if something does go wrong with the property and there’s a forced sale, if it’s sold short, there’s a chance maybe the person who’s in second or third position doesn’t actually get paid.
So from a lender’s perspective, there’s significantly less risk to them to be in first lien position to make sure that if something does go wrong with the property, they’re the first ones to get paid out. So the fact that there wasn’t a lien against the property from Ashley’s private money lenders meant there was less risk for the lenders themselves. So I think the lesson for a Ricky investor is if you have a good enough relationship with the private money lender that you’re working with to not file a lien against the property, that might give you more options as you look to tap into some of the equity that you built up on that property. And I’ve actually never thought about that. So thanks Ashley. Just learn something new today.

Ashley:
Yeah. I mean, if I’m a private money lender, I’m probably not going to do that, but –

Tony:
I don’t know if I would either.

Ashley:
I mean, from my own experience, there’s obviously people that won’t do that. It’s literally just sign a note payable piece of paper and here’s a joke with your money and make sure you make your payments.

Tony:
But a lot of it comes down to relationships too, right? It’s like if the relationship is there and then you guys can make that work if they’re willing to do a solid.

Ashley:
Yeah. I know of an investor, he had literally the checkbook to his lender’s line of credit and he just knew what amount the line of credit for was just could write checks off of it to fund projects and things like that and just kind of had free will. He knew what he had available to use and he would use it and then pay back or whatever. So there was never even any kind of agreement or anything. It was just whatever you take off make sure you pay back and then he would pay him whatever amount in interest separately.

Tony:
I got to find that private money lender. Just give me the checkbook. Let me –

Ashley:
And in that situation, it was a family member. I’m pretty sure it was like an uncle or his wife’s uncle. I don’t remember for sure, but it was a family member that he did that with. Yeah. My situation, it wasn’t, but mine was just another investor looking to invest in other things. Okay, so let’s move on to number five. And number five involves doing a BRRR. So the BRRR strategy is when you buy a property, you rehab the property, you rent the property out, then you go ahead and refinance it now that you’ve got it beautiful, rented, renovated, added value, got a tenant in there paying rent, you refinance it and then you pull some of your money back out, all of it back out, and then you take that money and you repeat the process. So in this scenario, you’re going to use your HELOC, your line of credit for the down payment and the rehab on the property.
So you’re going to go to a lender, you could even go to a hard money lender in this situation, and you have say your $100,000 line of credit, and you’re going to use 20,000 of that, 30,000 of that, 40,000 of that, whatever it is for the down payment and use the rest for the rehab. So you go and you purchase your property, you pull off the line of credit as you’re doing the rehab, you get it rented out, and then you go and refinance with the bank. You get a new appraisal done on the property and what the value is and the goal would be that the property is valued at more than what you purchase it for, more than what the rehab costs. And you’re able to then refinance it and pull some cash back out and pay back your line of credit. So I’ve done this multiple times.
I think it’s a really, really great strategy if you don’t have a lot of actual cash sitting in a savings account or if you don’t want to tap into that and don’t want to use that, using the line of credit to go through this process. And of course, there are things that can happen. And a couple years ago as we had really low rates, people were doing the Burr strategy on properties, and then when it came to time, they were done with the rehab time to refinance and rates shot up. Now all of a sudden their deal doesn’t work anymore because they weren’t expecting to have such a high rate. So there are definitely nuances that you have to plan for if it doesn’t appraise for what you think it’s going to, or maybe the market goes down and your appraisal still isn’t there, whatever it is, or your rehab takes way longer than you expected.
So you do have to have some safety nets in place and different exit strategies in case you run into issues. But when you’re able to refinance, you pay back your line of credit, then you’re not paying any interest on it until you find your next deal and you pull the money back off.

Tony:
And if you guys head over to biggerpockets.com/burrbook, you’ll see that our very own David Green, previous host of the BiggerPockets Real Estate Podcast, wrote the book on the Burr strategy and built his entire portfolio doing exactly that. I will say that I feel like it’s good for us to say that the Burr strategy is maybe a little bit more difficult today to get all of your capital back on that refinance as the interest rate market and just purchase prices have shifted a lot since that book was written, but the idea and the premise is still very, very strong. And even if you’re not getting back all of your capital, if you’re getting back 85%, that’s still a good chunk of capital then to go redeploy back into the next deal. So I think that’s the goal is that we can get back a good portion of that initial capital, not always necessarily that it’s a perfect burr where we get back every single penny that we put in.
I will say this though, and again, this was back in 2019, but the very first two real estate deals I ever did, they were both burrs and both were with the zero dollars of my own money. And I found a local credit union in the city that I was investing in where they offered this loan product where if you found a good enough deal, and to them, I think it had to be your total project cost, so your construction and your purchase price had to be, I think it was like 72.5% of the ARV value or less. So if the house was going to be worth a hundred grand, my purchase price and renovation costs had to be 72. 5K or less. And if I found a deal to check those boxes, the bank would actually loan 100% of the entire project. And I did that twice with that same bank.
And the benefit to that, even aside from the fact they were covering everything, was that they also had inspectors on their team who will go out there and inspect all of the work to make sure that it was being done correctly. And there were certain contractors that they had vetted that you had to work with in order for you to get approved for this loan. So it was this really, really great handholding process for me the first time through because I had this bank who had a very strong vested interest to make sure the deal actually worked, who gave me the vetted contractor, who walked the property to make sure that things were getting done. And it was a really, really great way to get into my first deal. So if you can find the right bank, just know sometimes it’ll help facilitate that bur process as well.

Ashley:
Okay. So we’re going to take a short break, but when we come back, we are down to our final three. We’ll be right back. Okay, so welcome back. And next up, we have a home equity investment or sometimes can be called a shared equity agreement. So how this works is a company will actually give you cash in exchange for a share of your home’s future value. So for example, they could say, “We want 1% stake in your home and we’re going to give you $20,000 because we expect in the future your home is going to be worth more money. So when you sell your home, we want to be paid 1% of whatever the sale price is or something like that. There’s no monthly payment.
They are just banking on your house appreciating and then taking a cut of that. So I say this with a lot of caution. This should be very, very much your last case scenario because it could be the worst case scenario. There’s benefits of it. It frees up cash. You have no monthly payment. This is also very helpful if your debt to income is not great because you can actually qualify for this. Better because they’re just banking off the equity, not that you are actually going to make payments to them. So here’s where it can get into trouble is they will actually… So they put a lien on your property, but it has a hard maturity date. They’re not going to wait 50 years to get their equity out of your property after they loaned you that money. So it can have a maturity date. So if you don’t sell your house or pay them back within X amount of time, say some typically are between 10 to 30 years, I would say.
But if you hit that maturity date and you cannot pay off the lien because you didn’t refinance or you didn’t sell your property, whatever, they can actually force liquidation on you. And that means you are forced to sell your property to pay them off, pay them back for their equity in the property. Tony, I’m going to assume that you have never done this before as I have not either.

Tony:
No, I haven’t. I feel like it was making waves a few years ago as this kind of gained popularity, but I couldn’t agree with you more, Ash. I think this is probably my least favorite because there are so many other options out there to allow you to tap into it. But you’re right, there are some people for different reasons, could be credit score, debt to income, whatever it may be, where maybe the traditional options don’t make sense. But I would probably definitely use this like a Hail Mary if nothing else has worked for me.

Ashley:
Is this also called, I think I’ve heard it, a reverse mortgage. Is that what they call this sometimes too, is another word for it? Is that something different?

Tony:
Yeah. I’m not quite sure what the difference is between this and a reverse mortgage, but when I think about the reverse mortgage, I feel like those ads are typically targeting older folks who are, it’s like once they pass away, then this company inherits a property. But I’ve always understood these ones as they’re marketing to us like millennials and younger homeowners who just want to tap into their equity and this is another option to do that. So yeah, I can’t say with confidence what the nuances are and the differences there.

Ashley:
I think I’d like to be on the company side of this. And that might be a pretty lucrative business of finding areas where typically have high appreciation, getting ownership of somebody’s house and then setting the maturity date.

Tony:
I wonder what that business model is though because they got to be making money somehow on the front end. So I wonder if they’re bundling up all of these equity little slices and selling them off to other investors who are like, “Hey, in 10 years I’m going to be able to cash out on this or if they’re keeping them on their own books.” So if you are one of these companies or you work with one of these companies, come talk to us so we can get some more insights on how this business model actually works.

Ashley:
Okay. Now number seven, actually sell your property. So if you sell your property and you’ve lived in it as your primary residence for two years of the last five years, okay? So if you live there as years one and two and then it was a rental three years, you would still qualify. It’s up to 250,000 if you are single, 500,000 if you filed married. So that 500,000, you would not pay taxes on it. So think about how much money, if you worked a W-2 job and you were paid $500,000 for the year, how much money they would take in taxes, unless you’re a savvy investor and you use cost tags and have a wife that gets rep status and all these different things to offset that income. It’s actually a huge benefit to sell your primary residence to take these tax-free gains because there’s not a lot of other places that you can get that amount of money and not pay taxes on it.
So this is another option for you.

Tony:
I think this is honestly, Ash, one of the best strategies to… More so if you’re house hacking, I think this is a great strategy where it’s like, “Hey, I’m going to buy maybe a duplex, live here for a couple of years, build up that equity, sell it, then I’m going to move into a fourplex, then I’m going to move into an Aplex.” And you can scale up that way. And we’ve interviewed folks in the podcast before who’ve leveraged very similar strategies where they house hack into larger and larger and larger deals and there’s a lot of benefits there. So I like that strategy for that reason. And then the eighth and final way is to bring your equity to a partnership. So there are different ways that we can leverage that.
And Ash and I both leveraged partnerships pretty extensively in our own portfolios. And actually if you go to biggerpockets.com/partnerships, you’ll find a copy of mine and Ashley’s book there. But you can take some of your equity and use that to partner with someone else. So maybe you don’t have enough equity to take down an entire deal, but if you leverage any of these strategies that we talked about, maybe you can fund the down payment portion and your partner funds the renovation or vice versa. You fund the renovation, your partner funds the down payment. Or maybe you have the ability from a capital perspective to fund the deal, but you just don’t have maybe the income or the DTI or the credit score to get the loan approval. So maybe the partner’s bringing the mortgage and you’re bringing the capital to actually close on the property.
So there are different ways and you can skin the cat a million different ways to take this equity into a deal, but if you’re missing an element to be able to do this by yourself, maybe tap into that equity to solve one piece of that puzzle for you.

Ashley:
Well, thank you guys so much for joining us for this episode of Real Estate Rookie. We hope you can consider one of these eight ways to actually tap into the home equity in your property to finance. We hope you can use one of these eight strategies to tap into the equity you may have in your primary residence or maybe an investment property you already have to fund your next deal. You’re working on a deal, let us know. If you’re watching on YouTube, go ahead and put it into the comments how you are funding that next deal. I’m Ashley, he’s Tony, and we’ll see you guys in the next episode.