Most home owners confuse home equity with home appreciation. This
widespread confusion is the #1 reason most homeowners are less wealthy
and why they have an unacceptable level of legal exposure.
If you pull out your home equity and put it to work you still get the
same appreciation in your home but for the first time the equity in your
home is also generating a return.
We offer many options for homeowners that want to refinance and pull out
equity and put it to work. These options range from first deeds of
trust, real estate, annuities, factoring, life settlements and life
insurance. For those who have a net worth of over $ 1 million we also
have access to capital development companies that have impressive
options which for standard regulatory reasons we cannot discuss on a
public website.
Conceptually, these options share the ability to provide a rate of
return in excess of what the mortgage payments are on the equity that
you have pulled out of your home and put to work. It always amazes us
how so many homeowners leave the equity in their home even though the
rate of return is zero and that this greatly increases their risk of
losing this equity from either lawsuits or a real estate correction.
This website Powerpoint video overviews your benefits. It takes 15
seconds to start and it will play for 6 minutes. You can pause or go
forward or backwards from any slide within the presentation.
If you are a part of that large group that confuses home equity with
home appreciation ask your self these questions:
If a bank offered you a savings account which paid ZERO PER CENT for
interest AND you needed the bank's approval to withdraw any of your
funds - would you be interested? Would anyone?
FACT:
Equity in a home ALWAYS has a ZERO
percent return. What you really want is the appreciation in the home -
wouldn't it be smarter to pay as little for that appreciation as
possible?
Is it smarter to diversify? Is it any different with the equity in your
home? Do you want to protect your equity from opportunistic lawsuits?
How is the equity in your home any
different? Afterall, equity is not
appreciation. If your home appreciates and you do not make your gains
real that is the same as the dot com multi millionaires that assumed the
year 2000 stock market could only go up. What do they do on Wall Street?
They take their paper profits and makes the real and equity in a home is
like paper profits - you have to make them real and there are only 2
ways to do that. Those are 1) sell the property, pay the taxes and move
or 2) refinance, pull out some equity and put it to work.
If we talk in a couple of minutes by simply asking a few questions of
you we will help you on your way to thinking in away where your ability
to increase your wealth while reducing your risk will increase.
