Can someone explain how you can use equity from property investment to buy another property? I understand what equity is but how can you use the money you don't have right in a bank account to purchase something else?
@Carver Vergara Let's say you own a house that is fully paid off. Its value is 100K.
You have 100K equity in the property.
You can use a cash out refinance to pull usually up to 75% of what the home is worth.
So you get another mortgage on the house, and pull 75% of the house's worth which is 75K.
You now took the equity you had in the house and use that 75K to buy more properties with.
That could be 75K on one property or 25K on 3 properties.
Thank you so much! That makes sense!