I have heard this statement many times. “I refinanced the property and then took out a cool $[fill in the blank].” I hate to admit it, but I don’t really know what this means. If you “take money out,” aren’t you essentially removing equity from the property? Can someone explain this to me?
Barry
Barry,
Welcome!
If you "take money out," aren't you essentially removing equity from the property?
You can’t buy property do rehabs, etc. with “equity”.
You are taking the equity out to give you the cash for the next project or purchase.
Equity is dead money. doint a refinance creates real live money. the difference between the money owed and valuation is money for you to take out.