High-Equity Real Estate Investing | Million-Dollar Strategy

Let’s discuss the “High-Equity Property” strategy.

First, we will discuss the investing strategy.

Next, we will discuss the numbers and how to potentially earn 1-million dollars with this strategy.

Then, you get some actionable steps to take for this strategy.

Lastly, you get one Resource to consider, which may be helpful to you.

This article will explain how you can generate profits with high-equity real estate investing, legitimate ways to consider activating a high-equity real estate business, as well as answer some questions that you may have about this topic.

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Okay Let’s Rock…

When we begin thinking of Equity as Profit, the idea of more equity from an investment standpoint means we have the potential to reach the 1-million-dollar goal FASTER.

Let’s ask 2 questions to help us uncover high equity houses:

How can you find houses with a higher percentage of equity?
Who would sell their house without requiring they receive all their equity in the house sale?

The answer is NOT a traditional home seller. They don’t need to discount their price and give away their equity.

As always, we need a homeowner who is MOTIVATED to sell their house fast for a number of reasons.

These can be:

— People behind on their loan payments. — Recently divorced homeowners. — Recently Inherited property owners. — Vacant property owners. — Tax delinquent property owners.

You can also search for homeowners who bought their house at least 15-20 years ago who have NOT refinanced. In cases like these, the original loan has been paid down some. In addition, the house may have appreciated during that time generating a good amount of equity. That is just half of the equation. Next, you need to search for MOTIVATION. That’s where our list above comes in. Modern real estate investor software such as BatchLeads can help you STACK levels of homeowner motivation. This helps you uncover very motivated home sellers. Combine that search with homeowners who have lived in the house for 15-20 years without refinancing and you begin uncovering homeowners that may consider parting with some of their equity in order to reach their goal of a fast house sale.

If you find a high equity scenario with a homeowner who needs to sell fast, but they want more of their equity than you want to give them up front, you might consider offering to pay them a certain amount after you sell the house.

Or you may consider giving them a percentage of the profit after you sell the house.

This may be all they need to hear to move forward with the deal with YOU instead of another investor.

Potential 1-million-dollar roadmap #1:

You can wholesale the house for a HIGHER contract sales price when there is MORE PROFIT left in the deal for the investor buying your contract.

This might help you expedite your 1-million-dollar roadmap from the Day #1 Lesson of this course, “Real Estate Wholesaling”.

Potential 1-million-dollar roadmap #2:

Sell the property yourself to a retail buyer. If the property won’t take much to get in good sales condition, you may want to offer it for a slight discount to get it sold FASTER for a HIGHER PROFIT than selling the contract to a wholesaler.

Buy low – Sell low. That is one formula for a fast profit.

Potential 1-million-dollar roadmap #3:

Implement the BRRRR Method.

BRRRR is an acronym for:

Buy Rehab Rent Refinance Repeat

If the house is in an area you feel good about that has the potential for ongoing demand and possible appreciation, you may want to keep the house for your rental portfolio.

Determine what your “minimum acceptable profit” will be.

Obviously there will be different variables for each house, repairs needed, financing on the property, possible payments in arrears, etc.

Let’s keep it simple for this exercise and say you are only choosing high equity houses to sell to retail buyers that will provide you with a minimum $50,000 profit.

5-Year Plan To 1 Million: 4 deals per year

3-Year Plan To 1 Million: 6.6 deals per year

1-Year Plan To 1 Million: 20 deals per year 3 deals per month +2

Of course, if you choose to go after higher price ranges, you may uncover higher equity levels. These larger equity deals may result in higher profits which would reduce the timeframe for this 1-million-dollar goal example.

Here are some actionable steps to take for this strategy:

Learn how to find distressed homeowner scenarios WITH EQUITY so you can uncover motivated home sellers.
Find investor-friendly short-term financing so you can give the high-equity seller what they want, get any work done you want, and secure the deal so you can ultimately generate a higher potential profit.
Create your essential relationships so you can implement any of the potential 1-million-dollar roadmap strategies: Wholesale Flip: Find active wholesalers in your area and find out what their buying criteria are. Retail Flip: Find a good real estate agent that can sell your house affordably for TOP DOLLAR fast. (Or consider selling a little lower than fair market value to find more buyers if the market is a bit slower so you can sell, get your profit, and move on to the next deal.) BRRRR Method: Find contractors you trust who can do the work ON TIME and within your budget.
Work on practicing your negotiation skills so you can create win-win-win deals.

Helpful Resource:

In order to be successful with this “High-Equity Property” strategy…

You MUST have a plan & process to be able to acquire houses that have a LOT of equity first, right?

If you need ways to secure this type of real estate deal, my “Equity Homes Dominator” course can help!

Investing in houses with significant equity provides a financial cushion, reducing risks from market fluctuations and enabling investors to secure favorable financing terms and boost property value.

This is especially helpful if you are planning to fix up the property to increase value, or you are flipping it to a rehabber with this goal.

Click here to check out my “Equity Homes Dominator” course.
(Use coupon code “JAKE” to get 50% off).

You will never wonder how to acquire high equity houses again.

Remember, whatever you are trying to accomplish, I know YOU can do it!

Mark Walters 3rd generation real estate investor