Refinancing All Cash Deals

Turn Your “Trophy Equity” into Something Useful.

By getting into a position where you are dealing with cash or some other type of self- funding solutions gives you the flexibility to do some really great things.  As you may have noticed, we have been talking about using a leverage position to get us into a place where we can use our cash position to our advantage.  One of the ways we can do this is by taking a house with 100% equity, our previously discussed trophy equity, and using it to our advantage by refinancing part of the equity out in the form of a tax neutral income.  This includes the option of making your own note for refinancing discussed in the previous chapter.  Since the cash we get out is in the form of a loan that is paid off for us by our tenant thank-you very much, it isn’t taxable income.  So, this means we can use the cash profits from the flips to buy and rehab a house, then get it right back tax neutral to use as we please.  We’ve discussed some of these options in a previous chapter.  Please make sure your tax professionals walk you through this so you don’t miss anything, or do anything illegal.

Let’s walk through an example of how we might use this strategy.  First, let’s assume………<click> here for the rest of the story

%d bloggers like this: