Latest news with #realestateinvesting
Yahoo
a day ago
- Business
- Yahoo
The Smart Way To Use Home Equity for Real Estate Investment, According to David Kimball
In an interview on 'The Stacking Benjamins Show,' Prosper CEO David Kimball discussed home equity and how real estate investors can use it. Be Aware: Check Out: He proposed two ways investors can tap into that equity, using financing offered by Prosper. Even those only scratch the surface of how creative real estate investors can tap their equity. Home Equity Loan Often referred to as a second mortgage, home equity loans (HELs) let you take out a new mortgage loan. Technically these could be a first mortgage if you've already paid off your original mortgage loan. Kimball noted that investors can use these loans to upgrade their homes. That could include adding an accessory dwelling unit (ADU). Homeowners could then rent out that extra unit to cover some or even all of their mortgage payments. Alternatively, investors could use the money as a down payment for a flip or rental property. 'The interest rate is fixed, as is the monthly payment,' explained Michael Micheletti of home equity lender Unlock Technologies. 'But it puts up your home as collateral, so if you can't keep up with payments, you face foreclosure.' Read Next: Home Equity Line of Credit Unlike HELs, which are fixed installment loans, a home equity line of credit (HELOC) is rotating credit more similar to a credit card. Borrowers can draw on it as needed and pay it back at their own pace — at least until it enters the repayment phase of the loan. Kimball pointed to the flexibility of HELOCs, the ability for investors to tap them or repay them as they like. That flexibility could prove useful to flippers, for example, who might tap their HELOC to pull out a down payment for a flip and then pay the entire balance off as soon as they sell it. Rental investors could take a similar approach, funneling every spare dollar to pay off the HELOC balance. Then they could do it all over again to add another rental to their portfolio. The current high interest rates could make HELOCs more attractive than refinancing. 'Many homeowners right now have rates below 5% on their primary mortgage,' said Mason Whitehead of Churchill Mortgage. 'For them to do a HELOC at 8% or 9% still carries a blended rate below what a new refinance mortgage rate would be.' Just beware that HELOC rates float with current interest rates. If interest rates rise, so too would your HELOC rate. Other Ways To Use Home Equity for Real Estate Investing HELs and HELOCs aren't your only options for using home equity to invest in real estate. You could refinance your home entirely to cash out equity, of course. But for many homeowners with low fixed-rate first mortgages, that doesn't make sense. Homeowners with equity could also offer a second-position lien against their home as additional collateral when they borrow money to buy an investment property. That can replace the down payment, so they wouldn't need to come up with any cash out of pocket. The same risk applies: If you default on your investment property loan, the lender comes for your home too. If you don't mind selling your current home, it opens up several other options. With the equity you cashed out, you could make a down payment on a multifamily property and move into one of the units. Ideally, the rents from the other units would cover your mortgage costs, and you could save up a new down payment. Or you could take another house-hacking angle and do a live-in flip. You could buy a fixer-upper using a renovation loan and rehab it at your leisure. Once completed, you could sell it for a profit, and rinse and repeat. Get creative, and you have many ways to tap home equity to build wealth from real estate investing. More From GOBankingRates 5 Old Navy Items Retirees Need To Buy Ahead of Fall 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on The Smart Way To Use Home Equity for Real Estate Investment, According to David Kimball
Yahoo
a day ago
- Business
- Yahoo
The Smart Way To Use Home Equity for Real Estate Investment, According to David Kimball
In an interview on 'The Stacking Benjamins Show,' Prosper CEO David Kimball discussed home equity and how real estate investors can use it. Be Aware: Check Out: He proposed two ways investors can tap into that equity, using financing offered by Prosper. Even those only scratch the surface of how creative real estate investors can tap their equity. Home Equity Loan Often referred to as a second mortgage, home equity loans (HELs) let you take out a new mortgage loan. Technically these could be a first mortgage if you've already paid off your original mortgage loan. Kimball noted that investors can use these loans to upgrade their homes. That could include adding an accessory dwelling unit (ADU). Homeowners could then rent out that extra unit to cover some or even all of their mortgage payments. Alternatively, investors could use the money as a down payment for a flip or rental property. 'The interest rate is fixed, as is the monthly payment,' explained Michael Micheletti of home equity lender Unlock Technologies. 'But it puts up your home as collateral, so if you can't keep up with payments, you face foreclosure.' Read Next: Home Equity Line of Credit Unlike HELs, which are fixed installment loans, a home equity line of credit (HELOC) is rotating credit more similar to a credit card. Borrowers can draw on it as needed and pay it back at their own pace — at least until it enters the repayment phase of the loan. Kimball pointed to the flexibility of HELOCs, the ability for investors to tap them or repay them as they like. That flexibility could prove useful to flippers, for example, who might tap their HELOC to pull out a down payment for a flip and then pay the entire balance off as soon as they sell it. Rental investors could take a similar approach, funneling every spare dollar to pay off the HELOC balance. Then they could do it all over again to add another rental to their portfolio. The current high interest rates could make HELOCs more attractive than refinancing. 'Many homeowners right now have rates below 5% on their primary mortgage,' said Mason Whitehead of Churchill Mortgage. 'For them to do a HELOC at 8% or 9% still carries a blended rate below what a new refinance mortgage rate would be.' Just beware that HELOC rates float with current interest rates. If interest rates rise, so too would your HELOC rate. Other Ways To Use Home Equity for Real Estate Investing HELs and HELOCs aren't your only options for using home equity to invest in real estate. You could refinance your home entirely to cash out equity, of course. But for many homeowners with low fixed-rate first mortgages, that doesn't make sense. Homeowners with equity could also offer a second-position lien against their home as additional collateral when they borrow money to buy an investment property. That can replace the down payment, so they wouldn't need to come up with any cash out of pocket. The same risk applies: If you default on your investment property loan, the lender comes for your home too. If you don't mind selling your current home, it opens up several other options. With the equity you cashed out, you could make a down payment on a multifamily property and move into one of the units. Ideally, the rents from the other units would cover your mortgage costs, and you could save up a new down payment. Or you could take another house-hacking angle and do a live-in flip. You could buy a fixer-upper using a renovation loan and rehab it at your leisure. Once completed, you could sell it for a profit, and rinse and repeat. Get creative, and you have many ways to tap home equity to build wealth from real estate investing. More From GOBankingRates 5 Old Navy Items Retirees Need To Buy Ahead of Fall How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on The Smart Way To Use Home Equity for Real Estate Investment, According to David Kimball Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-08-2025
- Business
- Yahoo
Can You Really Retire on Rental Income With Just $100 to Start?
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Retiring early on rental income has long been the gold standard for passive wealth. But for most people, that goal comes with a catch: you need serious money to buy rental properties, and even more to manage them well. The dream of building a portfolio of cash-flowing homes sounds great—until you realize you need a six-figure down payment, a rock-solid credit score, and the time and energy to handle tenant issues, repairs, and property management. That's where most people stop. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership But a new wave of platforms is changing that—and one in particular, called Arrived, is making it possible to start building a rental income stream with just $100. It's not magic, and it's not a shortcut to overnight riches. But for long-term investors looking to slowly build passive income that could one day help fund retirement, Arrived offers a radically more accessible starting point. The question is: can you actually retire on rental income if all you start with is $100? A New Kind of Real Estate Investing Let's be clear—Arrived isn't a REIT, and it's not a real estate crowdfunding site that only serves wealthy, accredited investors. It's a platform that lets anyone buy fractional shares of real single-family rental homes. You don't need to own the whole house. You don't need to qualify for a mortgage. And you definitely don't need to be a landlord. Instead, you browse through available properties, pick the ones you want to invest in, and buy shares, starting at just $100. Each home is owned through a special LLC, and you become a shareholder in that property. From there, Arrived handles the rest: they manage the property, collect rent, take care of repairs, and send you quarterly income distributions. When the property is sold, typically after 5–7 years, you also get your share of any appreciation gains. It's a long-game approach to real estate, designed to make passive income possible even for those starting small. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. What Retirement on Rental Income Really Takes Retiring on real estate isn't just about owning property—it's about owning enough income-producing assets to replace your paycheck. Traditionally, that meant buying one property at a time, slowly building equity, reinvesting the profits, and eventually replacing earned income with rental income. But with a platform like Arrived, that same concept becomes far more scalable—because you can spread your money across dozens of properties in different cities, all without the risk of being tied to a single mortgage or market. If you're starting with $100, no, you're not retiring next year. But that's also not the point. The idea is to start small, reinvest your earnings, and build over time. Many Arrived investors gradually build portfolios worth thousands (or tens of thousands) of dollars by reinvesting their quarterly dividends and adding new capital when they can. The best part is, you can build that portfolio without taking on new debt, managing a single tenant, or making real estate your full-time job. Real Returns From Real Properties Unlike high-risk speculative plays, Arrived focuses on single-family homes in markets with long-term demand. These aren't fixer-uppers or high-leverage flips—they're stable rental properties that generate real cash flow. In Q4 2024, Arrived paid out $1.84 million in dividends across 365 homes, with an impressive 92% stabilized occupancy rate. That's not fantasy money. That's rent from real tenants, paid out to investors. Even better, many of those leases beat forecasted rent projections, and the average lease term was over 15 months. That kind of consistency makes Arrived feel a lot more like a stable retirement play than a trendy investment fad. You get quarterly income, long-term upside, and access to the kind of tax advantages that normally only go to traditional landlords—like depreciation and write-offs on your share of expenses. Building Wealth Over Time—Without Being a Landlord Here's the thing most people miss: retirement wealth doesn't come from flashy investments—it comes from compounding and consistency. If you invest $100 and reinvest the dividends every quarter, you're not going to see life-changing money right away. But if you keep adding $100, $250, or $500 every month, and reinvest your returns into more homes across the platform, you're gradually building a diversified real estate portfolio that produces income month after month—even while you sleep. And unlike a rental property you own outright, you're never dealing with maintenance calls, vacancy stress, or tenant disputes. That means you can continue investing while focusing on your career, running a business, or just living your life. You're not locked into one house or one city—you can invest across dozens of markets, adjusting your portfolio to match your goals over time. So, Can You Actually Retire With Arrived? Yes—but with a caveat. You won't retire only from your first $100. But what Arrived gives you is a rare opportunity: a legitimate way to start earning passive income from real estate with a tiny upfront investment, and the ability to scale that into something meaningful over time. The combination of low entry point, no landlord duties, and consistent payouts makes Arrived one of the most accessible long-term wealth-building platforms available today. Whether you're investing toward retirement in 30 years or trying to replace part of your income within the next 10, the building blocks are all here—waiting to be stacked one share at a time. See Next: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. It's no wonder Jeff Bezos holds over $250 million in art — this beloved alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. This article Can You Really Retire on Rental Income With Just $100 to Start? originally appeared on
Arabian Business
11-07-2025
- Business
- Arabian Business
Dubai real estate: PRYPCO Blocks completes first Exit Window as over 2,800 fractional real estate units change hands
Dubai-based fractional real estate ownership platform PRYPCO Blocks has successfully concluded its first-ever Exit Window, marking a major milestone in the evolution of real estate investing in the UAE. The event saw more than 2,800 Blocks — fractional units of property ownership — traded across 211 transactions, with a total transaction value of nearly AED300,000 ($81,700). Held from June 24 to July 7, the Exit Window allowed investors to buy and sell stakes in the platform's first three income-generating properties, all of which are currently rented and delivering monthly returns. Fractional real estate in Dubai Key highlights: 77 per cent of Blocks sold at market value, highlighting liquidity and price transparency 90 per cent of purchases were made by existing PRYPCO investors, showing strong reinvestment and user satisfaction Instant rental income for new buyers as all properties are fully tenanted Over AED 172,000 ($46,900) in rental income already earned from the three featured properties Amira Sajwani, Chairperson at PRYPCO Blocks and Founder and CEO of PRYPCO, said: 'This milestone validates what we've built. Fractional real estate ownership is not just accessible. It is liquid, trusted, and is generating real returns for real people.' The results of this Exit Window underscore growing confidence in the fractional ownership model — especially among investors seeking income-generating assets with built-in liquidity. The platform has now fully funded 19 properties, reinforcing its ability to source and deliver high-quality real estate opportunities in Dubai and beyond. The next Exit Window is scheduled for December 2025, giving investors another opportunity to rebalance portfolios or realise gains in a secure and regulated environment. As PRYPCO Blocks scales, it plans to introduce more features to simplify real estate investing, while expanding its pipeline of rental-yielding properties — helping democratise real estate ownership across the region.
South China Morning Post
02-07-2025
- Business
- South China Morning Post
Emperor's financial struggle mirrors the current state of Hong Kong's property sector
Hong Kong developer Emperor International Holdings' struggles reflect the highs and lows the city's property sector has endured over the past few years. Advertisement Just over five years ago, residential and commercial real estate prices and rents were hitting record highs. Developers reported robust earnings and had access to cheap financing, boosting their confidence – and that of investors – to spend more on new projects or acquire existing income-generating properties. But this golden era ended abruptly. Social unrest in 2019 and the Covid-19 pandemic that followed triggered an economic recession, reducing demand for commercial property at a time when new projects were being launched. The downturn also coincided with a sharp rise in Hong Kong's interest rates, which were raised 11 times between March 2022 and July 2023 to over 5 per cent from 0.5 per cent, before falling slightly last year. Emperor's full-year loss of HK$4.74 billion (US$600 million) for the year ended March 2025, more than double the HK$2.04 billion a year earlier, reveals the severity of the crisis facing the sector. The group, controlled by 82-year-old tycoon Albert Yeung Sau-shing, disclosed that bank borrowings totalling HK$16.6 billion were overdue and some associated loan covenants had been breached. Albert Yeung, the founder and chairman of Emperor Group, pictured in December 2024. Photo: VCG/VCG via Getty Images 'The broad issues faced by Hong Kong developers in the current environment would be weak property valuation and soft earnings from poor sales,' said Xavier Lee, an equity analyst at Morningstar. Lee did not specifically comment on Emperor's predicament, but gave a general overview of the challenges developers face in the current environment.
