I have deals that come through my office every single day and the buyers are creating instant equity sometimes 5K, sometimes as much as 100K by buying foreclosures and bank owned properties.  

Once the HELOC closed and I had instant access to that money, I made my offers and purchased both my original and now second property for cash using the money from my HELOC.  

@Michael Rodrigues so a refinance would be you taking a new loan on the appreciated value of 254k, this give you the difference of instant equity of 60k for another investment.

Since money has choice and needs velocity to grow, the deal would have to beat a REIT like O by a lot, because O has virtually zero risk (compared to what we do), there is zero work for you to do and has a track record of returns that you can liquidate from any day instantly.

They basically give them cash and a QR code, and the money is auto (and instantly) applied to their ledger in our system.Yeah, I can deal with late people. 

Look at a comparable home to build, calculate at minimum $200/sq ft plus development costs and land price, and that difference is your instant equity.

That instant $120K you've got going now looks pretty good with zero extra effort or risk.

I can purchase it using leverage and instantly start collecting rent.

Since it appears the 3rd is basically unsecured, it's value is significantly reduced, but that's not to say worthless.The O&E Kent mentioned, isn't instantly obtained here, took a couple days, may not be where you are, BTW Kris,, you need to fill out your location in your profile, it allows us to have a better picture of potential issues with legal aspects of your deals.

Was instantly hooked.