Читать книгу Foreclosure Investing For Dummies - Ralph R. Roberts - Страница 32

When you purchase a property for less than its market value, you automatically have equity in the property. Renovations that bring the property up to its market value may add more equity, assuming that you don’t overspend.

You can cash out the equity by refinancing it for more than you paid for it to realize your profit almost immediately. Keep in mind, however, that by refinancing for more than the purchase price, you take on a larger mortgage, and the increased interest chips away at your total profit over time. Refinancing, however, does provide you capital to fuel your next investment or cover the cost of renovations. For more about refinancing to cash out equity, see Chapter 19.