Property Value for Homes

[Jeff Long]

I'm currently reading the Low and No Money Down book by Brandon and can't seem to grasp this concept, comment please if you now the answer. So, If a house is worth $100,000 and the investor puts a 30% down payment on the home why would they have no real equity. Wouldn't the investor have $30,000 equity or does no real equity mean you can only get 90% of that $30,000 to leverage at most and that wouldn't be much equity. HELP!

[Brent Coombs]

@Jeff Long, if the Lender lets an Investor borrow (only) 70% LTV (which is why they must put down $30k in your example), then where is their remaining "borrowable equity"?

Brandon's "BRRRR method" places importance of getting that $30k back upon refinancing.

That's why you need to have been buying / value-adding at a (significant) discount! Cheers...