The world of real estate is fast-paced and unforgiving, but if you are interested in building long-term wealth, there is no better place to start. As many of you know, I retired at the ripe old age of forty and never looked back. I was a working professional at the time, but I was able to generate a substantial passive cashflow by purchasing income-producing assets. Today, we are going to pick up where we left off in our discussion about creative purchasing techniques. In my last solocast, we covered land contracts and wrap-around mortgages. Now, it is time to take a look at blanket mortgages and how you can use them to grow your portfolio and build wealth.
Build Equity and Acquire Income-Producing Assets
A blanket mortgage typically ‘blankets’ or covers your existing investment properties, but I have seen them encompass businesses and personal homes as well. This type of mortgage enables you to take out a third party loan for a portion of your equity all of the properties so that you are essentially borrowing against yourself. You can use the proceeds to purchase another investment property and take out a first-position mortgage on the new one to pay back the line of credit.
Leverage What You Already Have
There are a lot of techniques out there and this is just one of them, but I am a major proponent of blanket mortgages because you can tap into the equity that would otherwise be sitting there. It enables you to acquire more income-producing assets while increasing your line of credit. You can even leverage what you already have to generate more cash flow and build equity outside of your business. If you are interested in learning more about blanket mortgages, make sure to visit www.myinvestmentservices.com and click on the member’s section.