Comments on: Is Your Line of Credit Frozen Yet? If Not, Yank it Out NOW! http://www.reipipeline.com/2008/02/28/is-your-line-of-credit-frozen-yet-if-not-yank-it-out-now/ Your SOURCE for Arizona Real Estate Investments! Wed, 10 Mar 2010 22:11:52 +0000 http://wordpress.org/?v=2.3.2 By: gpwuster http://www.reipipeline.com/2008/02/28/is-your-line-of-credit-frozen-yet-if-not-yank-it-out-now/#comment-156 gpwuster Fri, 31 Oct 2008 14:19:05 +0000 http://www.reipipeline.com/2008/02/28/is-your-line-of-credit-frozen-yet-if-not-yank-it-out-now/#comment-156 I wish I had read this sooner. Now I am in the middle of renovation and have no more credit line. I understand where bank is coming from but just because they lost a lot of money from loosely lending money before now for people are legit to pay their debt are suffering.... I wish I had read this sooner. Now I am in the middle of renovation and have no more credit line. I understand where bank is coming from but just because they lost a lot of money from loosely lending money before now for people are legit to pay their debt are suffering….

]]> By: Cash http://www.reipipeline.com/2008/02/28/is-your-line-of-credit-frozen-yet-if-not-yank-it-out-now/#comment-108 Cash Fri, 29 Feb 2008 17:20:49 +0000 http://www.reipipeline.com/2008/02/28/is-your-line-of-credit-frozen-yet-if-not-yank-it-out-now/#comment-108 Well I just deleted a derogatory comment by a visitor, as I don't tolerate that on this blog. However, I will address his remarks. Many SMART investors use lines of credit, credit cards, loans, etc to obtain a higher, better return on their money. So if you were to utilize a LOC at 8% interest for an investment that returns 30%, wouldn't you consider that a smart thing to do? I'm not suggesting to yank out your equity and go buy a $70,000 car you couldn't otherwise afford. However, if you use that equity for a bigger, better investment, doesn't that make sense? Put it this way- some people will go sell their homes to get to their equity. Then they take their profits (what about Capital Gains?) and use it for a larger investment, like commercial property, land, another business, etc. That's one way. Others choose to keep their homes, tap into their equity and still use it for a bigger investment opportunity. That seems much easier and smarter to me, and I'm not even addressing the tax benefits in that method. So yes, while you may not be 'deep in debt' as you remarked, you may not be utilizing your equity to your advantage. It's that kind of scarcity mentality that will never provide you the abundance of opportunities available out there. Well I just deleted a derogatory comment by a visitor, as I don’t tolerate that on this blog. However, I will address his remarks. Many SMART investors use lines of credit, credit cards, loans, etc to obtain a higher, better return on their money. So if you were to utilize a LOC at 8% interest for an investment that returns 30%, wouldn’t you consider that a smart thing to do? I’m not suggesting to yank out your equity and go buy a $70,000 car you couldn’t otherwise afford. However, if you use that equity for a bigger, better investment, doesn’t that make sense?

Put it this way- some people will go sell their homes to get to their equity. Then they take their profits (what about Capital Gains?) and use it for a larger investment, like commercial property, land, another business, etc. That’s one way. Others choose to keep their homes, tap into their equity and still use it for a bigger investment opportunity. That seems much easier and smarter to me, and I’m not even addressing the tax benefits in that method.

So yes, while you may not be ‘deep in debt’ as you remarked, you may not be utilizing your equity to your advantage. It’s that kind of scarcity mentality that will never provide you the abundance of opportunities available out there.

]]>