Owning real estate with little or no mortgages or liens sounds great! Except that a house is an ongoing drain on your finances for maintenance, repairs, taxes, and insurance.
If you shirk the upkeep to save money, it is disheartening how fast your house will lose value and show disrepair. Turn Your Equity Into Cash.
Do you say the house you bought or inherited is an investment that is going up in value? But that is “unrealized gain” – it means nothing if you don’t sell since the market could soften again.
If a $200,000 house gains 5% value in a year, that’s $10,000 of a paper asset to weigh against the real cash expenses of insurance, taxes, and upkeep that may be even greater.
In comparison, your monetary investments are earning real cash money for you, the cash you can spend or invest for more real earnings.
If you have built up significant equity in your property or inherited a house with few or no encumbrances, it’s strictly a theoretical paper asset until you convert it to cash now and put the money to work earning for you. Lock in the gain before the market flattens or reverses.
You may hesitate to put the house on the market because you don’t have the time, patience, or even the cash to prepare it for sale and go through the process of marketing and selling to a traditional home buyer.
But there is another way – sell quickly, as-is, to a professional cash buyer. I explain how in my blog post “How to Sell Your House (Very) Quickly”.
Inheriting an unencumbered house is a great example of the difference between equity and cash in real estate. You must actively keep your inherited house in good repair and well-maintained, pay the taxes and insurance, and continue to pour cash into your “free” house for as long as you continue to own it.
Or, you can sell it fast with no further cash input on your part and put those funds to work earning for you instead of costing you.
Cash buyers like PDX Renovations can get you the cash you want or need quickly for the equity you’ve created in your house, sometimes in as little as 24 hours.
Cash that can earn returns for you without ongoing high costs, cash to settle old liens or debts, or clear up your back taxes. Convert your equity into cash that isn’t just a number on paper but is truly making your life better.