Your home equity could be the secret sauce to earlier retirement. With so many homeowners and rental property investors across the nation sitting on hundreds of thousands in home equity, one asks, “what if you used this trapped equity to build wealth?” And although most homeowners won’t want to sell their primary residences, refinance into higher mortgage rates, or risk taking out a high-priced HELOC, rental property owners are in the perfect position to use their massive equity positions to upgrade to bigger, better investments. We brought on Chris Lopez, Denver-based investor and agent, to explain.
Chris has been able to build a sizable real estate portfolio quite quickly, but even he admits to starting a little later. After working most of his career as an internet marketer turned day trader, Chris gave it all up to go head-first into real estate as an investor-friendly agent and investor. And, as a Denver investor, he’s seen homes he bought just a few years ago EXPLODE in value, and many other investors feel the same. So, if you’re in Austin, Boise, Raleigh, Phoenix, or any other real estate boom markets, it can seem as if you’re sitting on a pile of wealth that can’t be touched. But you’d be wrong.
In this episode, Chris walks through how homeowners and real estate investors can unlock the “trapped” equity in their homes. He goes through when to buy, sell, or refi and how to use the BiggerPockets Rental Property Calculatorto decide the best move. Chris knows that not every property is worth selling/upgrading, but if you trade a few lackluster properties for cash-flowing ones, you could reach your retirement goals YEARS faster, with more money coming in and less stress. So, want to unlock your home’s equity and speed up your path to early retirement? Stick around!
In This Episode We Cover
Home equity explained and how to use it to build wealth even faster
When to buy, sell, or refinance and how to calculate the best option for you
Cap rates and using this simple metric to decide whether a rental property is worth keeping
HELOCs (home equity lines of credit) and which banks will offer them on rental properties
Chris’ five-step framework to reassess and upgrade your rental portfolio
When to cash-out refinance and whether or not doing so makes sense with today’s high interest rates
And So Much More!
Links from the Show
BiggerPockets Money Facebook Group
Finance Review Guest Onboarding
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Apply to Be a Guest on The Money Show
Podcast Talent Search!
Subscribe to The “On The Market” YouTube Channel
Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets
Check Out Mindy’s 2022 Live Spending Tracker and Budget
Finance Friday: Living Paycheck-to-Paycheck with 9 Rental Properties
Chris Lopez Profile
Click here to check the full show notes: https://www.biggerpockets.com/blog/money-385
Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!
Learn more about your ad choices. Visit megaphone.fm/adchoices
I don't understand a 40K house. the building materials alone for a house cost more than that, never mind the labor. Plus the cost of the land? if the houses are so low cost, why would anyone rent? I couldn't even buy a driveway for that price...
how can I write in to ask a question?
She loves bachata!
sad to see people using dogs for profit...when millions of dogs die in shelters each year in the US
This is basically me! Key takeaway: Get a higher salary via a higher-paid career (rather than lower-paid job + side hustles/hobbies), before starting house-hacking
This guest was all over the place. Really hard to follow.
MINDY IS THE ABSOLUTE WORST!!! this podcast gets great guests with awesome stories, however, you never get to hear them talk because mindy is ALWAYS talking about herself and forcing her opinions on everyone else. a common phrase from her is "I'm right, dont listen to anyone else or yourself or look at the numbers of a deal, im right" Mindy Jensen is single handedly ruining an otherwise great show. Bigger Pockets, can you get a new host please?
Great Podcast. A couple things not discussed or maybe I missed them. 1) Higher 401k contributions for tax purposes 2) HSA 3) Roth coversion ladder which allows you to access money way before retirement age. This is a key to maxing out your retirement accounts.
covered calls Mindy......
Scott didn't ask him what was his favorite joke to tell at parties
the fact that this man graduated without student debt and has still gone on to helping people pay off over a billion dollars in student loan debt shows something. it's cool to me how people can make a business out of helping people. It's one of the reasons I love the FI community. I'm excited to get to the point that I can help more and more people better their lives.
I need to listen to this episode at lease 4 times. on the really good ones I try to listen twice and then twice sitting down taking notes and this is for sure the one I'm going to do that with
I love the show. I've been listening to BP the original for years now and in some ways I like this one almost more. its diverse and always goes over stuff that's really helpful with how to live and grow your wealth.
I am for sure going to start doing this. I can cut but I suck at grocery shopping and a lot of my food goes to waste. I've wanted to start meal planning and I'm going to check out Erin's website and really start doing what I need to cut my spending in this area.
how exactly is he the right person to give advice on this topic??? he didn't have student loan debt...
I am curious to know the answer that Scott asked. What were the 20 cities and what data points was she looking at?
climate change.... really?