How to explain taking out equity

Question

I am trying to find a way to explain taking equity out of a house to my wife. My wife owns the house that we rent out and that I am trying to pull out against. She put a lot of money and hard work into it and that is why it is almost paid off. Now that it is a good cash flow property, she feels that it is her money that we are pulling out and she is scared. Now that I am trying to find ways to help our family with investing, she supports me, but I need a way to use the cash cow we have.

I have not been able to find an article or explanation to get her to understand refinancing, maybe I don't understand it, to explain it to her. Any help would be appreciated.

Joseph

I have not been able to find an article or explanation to get her to understand refinancing, maybe I don't understand it, to explain it to her. Any help would be appreciated.

Joseph

Joseph McKinney · Answer

Thank you for those good ideas! I have meant to her numbers on the BP calculators that I have ran. I hope one day she’ll read RDPD. Thank you for your support!

Jim Grutkowski · Answer

@Joseph McKinney This is one of those emotional topics that are sometimes hard to overcome with facts and numbers. So it might make sense to take a step or two back and really help her understand what you are trying to do. I would recommend starting with the book Rich Dad Poor Dad. Ask her to read it with you...maybe you can read it at night together before bed or separately and then discuss it on date night. It's a quick read and puts it all in perspective. Then maybe do what @Travis Sperr suggests by finding a couple deals and working some simple math on it. Ask her to help you look at a couple properties online and run them thru a financial model. Then show her the results. I've built a pretty easy to use model that I can share with you or BP has a great calculator. Hopefully this will help you all bridge the gap. Best of luck.