Using Equity to pay off current debts

[Janis Mcquinton]

Hi, I currently have about 200k equity in my current home; I have approx. 90k in IRS, credit card, and vehicle debt, by the end of this year I am expecting a large amt of capital later this year that would allow me to pay back the new debt as well as invest more money into more real estate.  I am very afraid to pull down my equity, However I am very excited to begin investing in more real estate.  I need an attorney, and a CPA, and a real estate agent.  Any ideas? 

[Marcus Auerbach]

@Janis Mcquinton I would say you need a mentor before any of the others. Using equity to wipe out debt does not get you in the right habits. I commend you for this post! Not a lot of people would have the grit to post something like that. Your current situation is the result of decisions you made in the past (and maybe some things outside of your control as well). So the first step would be to change your financial habits. Once you change those it will chnage the trajectory of your life. It will be barley noticable at the beginning, like a ship that chnages course just a few degrees, aber after days and weeks it makes a huge difference.  There is a good little book on that: The Compound Effect by Darren Hardy. 

If you want to get where other people are follow the "Be. Do. Have" principle. You first have to "be" that person, that's your mindset. Then you have to "do" what that person does, this are your habits and the things you do every day. As a result you will "have".

Real Estate investing is fantastic, but you have to build from a strong foundation and that is your financial literacy. So you first have to work on yourself. There are ton's of great books and courses and you will know which ones are right for you when you see them. Work on yourself first, develop the habits, maybe sell the car and other things you don't need. Work out a budget for yourself and start saving. Tackle the highest interest rate debt first. See if you can consolidate debt to lower interest rate. And once you are ready, the use your equity to make money for you, and then use that money to pay off your remaining debt. I wish you much strengh and success!