In an interview on “The Stacking Benjamins Show,” Prosper CEO David Kimball discussed how real estate investors can use home equity. He proposed two ways investors can tap into that equity, using financing offered by Prosper. Home equity loans let you take out a new mortgage loan, while home equity lines of credit are rotating credit more similar to a credit card. Kimball pointed to the flexibility of HELOCs, allowing investors to tap or repay them as they like. HELs and HELOCs aren’t the only options for using home equity to invest in real estate. Homeowners with equity could offer a second-position lien against their home as additional collateral when borrowing money to buy an investment property. 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. Get creative, and you have many ways to tap home equity to build wealth from real estate investing.

Read more at Yahoo Finance: The Smart Way To Use Home Equity for Real Estate Investment, According to David Kimball