Unlock Home Equity Without Selling Your House | The Surprising Truth About Home Equity

Patriot Nation this is the most revolutionary concept I've ever seen in 30 years of helping people acquire or sell real estate or Finance their homes I'm going to show you in this video a way to pull money out of your existing home if you have an existing home of course and you want to buy a new home you're going to pull out the equity without a loan without selling your home legally and you're going to get money within about two to three weeks and here's the most mind-blowing part you're going to get a chunk of change later on down the road without any management responsibilities for your existing home as you carried it into the future I'm going to cover all that I know I said a lot there I'm going to break it all down so stick around share this video and let's kick off this Rodeo right now hi folks I'm Kevin Fen the mortgage Patriot here in Central Texas nestled in the hill country above San Antonio Texas serving all you proud Texans out there and as well as all you great folks around the country what can I tell you I try to bring exciting new programs best programs I can find with respect to loan programs typically buying a home but here we're talking about something revolutionary in terms of selling a home and as I get into that hit the like And subscribe if you would because it just really helps my YouTube uh Channel bring videos to the Forefront and keeps you on The Cutting Edge of knowledge and best practices across the industry do that if you would and comment even and let's get into that content right now so prior to this new program that I'm going to show you right now the way to pull Equity out of your home there you've only had two choices one is to get a loan to get a cash out loan be it on a first lean cash out or a second L Cash Out HELOC home equity line of credit either way you're pulling Equity out of your home yes but you're adding to the debt load of your home so if you're trying to buy an investment property or or a new primary home now you have to contend with two different mortgages maybe even three if you're buying a new home you have to you qualify for that mortgage your existing mortgage and the added debt you added to pull money out to provide the down payment for this new property so it usually doesn't work that you can qualify for a loan in that respect so your other choice is of course to sell the home but in selling the home great now you pulled out Equity but there's no more participation of profit in the house that you just owned because it's gone it's sold right you got a nice chunk of change great you're going to buy something new but you don't get to participate in equity advances home appreciation of your prior home well that would be crazy right because you don't own it anymore ah but I'm going to show you solution to all that and this is why it's going to be revolutionary okay great how does this program work I'm going to show you right now and I'll use an example a little bit later on so hang in there because I'm going to talk Concepts right now and a National Institution is going to basically buy your Equity they're not going to buy your house house you still own the house you are on title you have to have an underlying mortgage okay they're going to buy the equity in your home you get to move out and purchase your new home based on the equity that they extend to you and it's going to be full value more than full value than a normal traditional sale of a home where you're paying two Realtors and closing cost and so forth it's going to be even better than that you're going to get a chunk of equity you're going to buy your new home this institution is going to take over the management of your existing home they're going to rent it out at Market rent and then at year five all the way to year 30 or many years you have left on your mortgage you're going to participate in about a third 33 35 maybe even up to 40% possibly of the future appreciation of this home okay wow what did I just say I'm going unpack all that with an example right now okay let's get into an example now and you're going to need to have assumptions so our assumption is you bought your home your current home you live in for $285,000 5 years ago $285,000 five years ago and now it's worth you can sell it for $350,000 after about five years on your loan balance let's assume that you took an FHA loan three and a half% down now that loan balance is approximately 250 so you have a home worth 350 and you have mortgage leans worth $250 so you have $100,000 of equity in the home hopefully you're tracking on that if you try to sell it in the traditional way great you're paying buyer and seller commissions closing cost and typically seller concessions unless you want to fix up the house so we're going to assume 5% for commissions across the board which comes out to 17,500 we're going to assume $3,000 for closing cost and we're going to assume $7,500 for seller concessions in lie of repairing your home so all that should come out to $28,000 subtracted from your $350,000 so you're net should be $322,000 not bad at all so in this scenario in the traditional scenario you're netted you've netted as a seller now $722,000 from the difference of 322 and your existing mortgage at 250 great but think of all the hassle you had to go through to do that in the timeline the hassle of cleaning your house making it show ready fixing and repairing items maybe doing upgrades or accepting a lower price of course if you don't do that and that takes probably a month just to get a show ready then you have strangers walk into your home criticizing your home for this or that that takes another month or 45 days or two months on the market and then once you get it under contract you have to worry about whether it's going to close or not that's going to take another 30 days so you won't even see your funds until probably three months away in our new example and in the Revolutionary World here I'm presenting you're going to get paid in two to three weeks and you're going to get paid in net of about $80,000 to start out instead of $772,000 based on our example now let me show you okay 80 versus 72 that's great two to three weeks versus three months that's even better let me show you the Revolutionary part right now okay so lean in real tight because here's where it gets real exciting in the traditional sale once again we said your house is worth 350 you bought it for 285 five years ago your loan balance now is at $250 you have $100,000 of equity if you try to sell it in a traditional manner you're going to net about $772,000 after closing costs after transaction commissions and so forth and it's going to take about three to four months to get paid under this new way you're going to get paid within two or three weeks and you're going to get paid about $80,000 in our example so we've got those two aspects of the traditional sale beat easily but more importantly now you control the house since you still own it even though it's being managed by a national company okay started in year five in the future meaning if you were to implement this in 2025 in the year 2030 you have rights to sell the home if you still want to sell it in year five let's assume a 3 and a half% appreciation of the home's value that home is going to be worth about 415,000 in the year 2030 so if you sell in 2030 you're going to get another check in the mail for 19,500 roughly not bad at all for doing nothing in fact you probably forgotten about the home and all of a sudden a check comes in the mail after you've sold the home credible now even more impressive let's say you want to set aside retirement money or plan for retirement 20 years from now what is that home going to be worth at again 3 and a half% appreciation in 20 years a $350,000 home is going to be worth $700,000 approximately if you sell it in year 20 what will that look like in the year 2045 I know some of us can't go that far in our heads but year 2045 your check that you'll get Once Upon sale will be $15,000 so in the traditional sale you got your 72,000 that was it you washed your hands you moved on in the Revolutionary world now you still control the home to for a sale after a year five all the way up to to the end of the mortgage term at any point you can sell during those times you have to wait for the five years so I'm gonna get into some of the guidelines here but can you see the power of this because you're getting your Chunk Up Front which is even higher than the traditional sale and you're getting a second chunk years down the road without you doing it without you lifting a finger incredible let's get into those qualifications right now so regarding guidelines uh remember this that you have to have on your existing home a mortgage Lane you can't own It Free and Clear that's one of the first guidelines and that mortgage is self the payment the monthly payment cannot exceed about $2,500 per month to include principal and interest property taxes property insurance and HOA dues oh and mortgage insurance premium all those factors that go into the monthly payment need to be $2500 or less now secondly there is no new mortgage so you won't be qualifying for any new mortgage you're going to be getting paid for your equity and so the institution that's buying bu the equity is going to be managing your your home and you will not need a new loan so in terms of the guidelines for the home itself your home cannot be less than three bedrooms two baths it needs to be built by 1980 or more recently the home cannot be on a lot bigger than half an acre primarily you're going to be in a metropolitan area and I believe that's all the guidelines if you fit that mold and let me know uh look at this scan code right here this Q code hover over with your phone and let's talk that's going to come to my my screen I just punch in a few of the inputs how I contact you and let's see if this is going to work for you you're going to get equity for your home that you wouldn't otherwise be able to get and you're going to participate down the road years later with some percentage of the appreciation of your home which you wouldn't otherwise get so you're gonna get two bites of the apple as it were and it's just going to be this is a great solution for a lot of people so let me know hit that QR code or reach me at 2110 317 6514 see if this turns out to be as good opportunity for you as I think it will be I'm the mortgage Patriot Kevin Fagan on your side make it a great one END OF TRANSCRIPT