My current thoughts on how much equity to leverage 🤔

[Kyle Curtin]

Goooood mornin’ BP! 

I made this FB post below 1 year ago today, and wanted to share my current thoughts on this principle today after working with equity for the first time over the past couple weeks. I would love to hear your thoughts as well! 

1 yr ago today:

“Investors, there is something that’s pondered my mind for a while and I have heard a multitude of opinions on.

If you have built up a significant amount of equity in your properties from principle paydown & appreciation, do you feel risk in keeping a significant amount of equity you have earned within the property because of potential negative market correction and losing access to some of it, or do you prefer to take out large amounts via refi or heloc and put it into another asset class until you find another deal to put it on? 🤔”

Today:

This is a cool coincidence that showed up on my feed this morning! As many of you guys know, I closed on my first home equity line a couple weeks ago. My opinion on this post from a year ago is a little more in depth today then when I posted it! 😁

So I was looking to pull as much equity that I could to invest info further deals from the Leominster property. I used Hanscom Credit Union and got access to a Variable, 90% LTV, 10 yr IO, 30yr term HELOC with a current rate of 9.25%. The rate is a little high in relation to some of the rates and terms I have heard about for lines from other credit unions, however I am very glad that I took out as much as I could.

I have since invested a large majority of that line with a partner to help in continuing to provide more passive investment opportunities for our community! If you would like to hear more about some of the passive opportunities we offer, I would love to jump on a call and chat! Feel free to shoot me a message!

In my opinion as of today, I feel you should try to leverage as much equity as you can to keep deploying the money forward, creating assets, and keeping the velocity of your money moving as fast as you can make it to put money in your pocket!

What are your thoughts? 🤔


Have a wonderful day today,

-Kyle