The most important virtue you can poses as an investor is patience. This is even more so when you’re a new investor. Lets face it, when you’re starting out as a new real estate investor or as someone that just wants to one day be an investor you don’t typically have a lot of money. Most of us weren’t born into wealthy families with bags of money at our disposal and we struggle to save enough as Americans as we climb our career ladders. However, many of us are able to save up a little bit of money and at least put a down payment on our house and make our payments every month while we work on conquering the world. What if I told you that this act alone was enough to get you started on your dreams of being the next millionaire tycoon?
You might be surprised that for many Americans their largest source of wealth is their personal residence. With a little patience and the efforts to buy your first home you may be building more wealth than you realize. When you purchase a home in an appreciating market the equity (Amount the house is worth – the debt or loan you have on the property) starts to grow. It doesn’t grow exceptionally fast and it’s not like investing into stocks that can have really high unpredictable growth spurts. It’s a slow steady growth that takes time and patience. However, given enough time it becomes a really powerful tool.
When the equity in your home becomes large enough there are financial institutions (Big banks, Little banks, credit unions, etc) that are willing to give you loans or lines of credit based on this equity. Money.com has a great article on how those work and exactly what they are but the short of it is you know how a financial base to operate from. You have a secret pile of “cash” that you probably weren’t aware of it it’s a pretty easy and simple program you can use to your advantage.
Speaking from experience I got my business started just a short while ago using a HELOC, as described in the MONEY article, and have not only been able to accelerate the growth of my company but also have the security of having that money available in a such an uncertain time caused by world a pandemic and the civil unrest in our nation. As a real estate investor it’s been the most effective tool in my bag and will continue to be a driving force behind a lot of investors ability to “get in the game.“