Soar to Success February 2020

Release Your Captive Equity By Karen Cupp C aptive equity in your portfolio could be stunting the growth of your real estate business. Albert Einstein called compounding “the most brilliant mathematical concept of all time.” By pulling out the equity in your present properties, you are leveraging what is already leveraged. For an investor, your property is an earning resource. Just as your financial advisor crafts an overall investment strategy but makes adjustments as the market changes, it makes wise business sense for you to constantly be assessing your portfolio to see if there are any underused resources. Many investors become terrified about even the thought of increasing their liability on their properties. They have a skewed mindset that the property is their investment when in fact it is the properties earning potential that is the true investment. Toss this fear from your mind; your investment property is not your piggy bank. Your true concern should be the cost of debt service and how to make every resource operate as efficiently as possible.