So… You’re a dentist who owns a dental office.
If you own the building free and clear (or the loan balance is less than 50% of the value)… you have equity in the building.
Congratulations.
I was recently asked how one would go about accessing this equity.
Fair question.
First off, accessing this “dead equity” can be a very smart move… if you have a superior investment opportunity waiting for that equity.
Don’t go blow it all in Vegas… (or Wall Street, for that matter.)
Simply put, there are two ways to access this equity.
Option #1 – Use A Bank
This can be a very smart option.
Rates today are very, very low. What’s more: you can get fixed rate loans (meaning that that they are capped for 15, 20, 25 years).
Locking a rate in for 15+ years is an powerful opportunity.
Assuming you have a good credit score and a good track record of payment history, you can take your money out of your building and put it into a better performing asset.
This is a downside, however.
Borrowing from the bank takes time.
The paperwork, the waiting, the underwriting… (I call this process brain damage)
Even with a good credit score, it can sometimes be overwhelming.
This leads us to option #2.
Option #2 – Private Capital
This might be simpler than you think.
There are many folks… (your own colleagues in professional practice today, for instance), who are near retirement, have built some wealth, and are unsure how to get a return on their investment money.
Trust those savings to a suit on Wall Street…? Those days are waning.
Of course, they can put money in the bank… savings accounts, CDs or T-bills, even bonds. Let’s face it… those returns are extremely low… 1%, maybe 2%.
There's just nothing there… and folks are starting to wake up to this reality.
There are millions in private capital that would love to invest in something solid like real estate.
They just don’t know where to find it… you could be the answer.
Admittedly, raising private capital takes more work.
You have to develop the relationships. You need to speak the language of investing.
This takes practice.
Your network is your networth.
That's something we believe at Freedom Founders.
We believe private capital is the investing model of the future.
Sure, we'll always have banks (in some form or fashion), but the government and the marketplace are squeezing their crushing grip tighter and tighter on the banks in their grasp.
Banks are becoming massive, top-heavy institutions wrapped in countless layers of restrictive red tape.
They are losing touch with the common man.
Build relationships with people who have money to invest. Connect. Create your own economy.
Be the bank.
