Leveraging Your Home to Create Wealth

There are ways to leveraging the equity in a home so you, the homeowner, can start making money. The secret is: take the equity out of the house to pay off outstanding debts, invest in something of interest, or take out money from the house to buy other properties.

There are different lenders available to borrowers when looking for money; there are A, B, and C Lenders. First, an A lender will be a large bank or trust that will give the lowest interest rate. B lender is a trust company or institution that lends money to those that don’t qualify for an A lender; they may have outstanding debt, they might already have a mortgage, or maybe their credit has been bruised. However, B lenders are more willing to lend to less qualified people, but their interest rates will be higher. Lastly, C lenders are known as private lenders. They usually have the highest interest rate and stand as a short-term lender, normally, no longer than a year.

When looking to pay off debt and improve creditworthiness, B and C lenders are normally considered. It's a short-term solution to build to a longer-term plan. Depending on each situation, the course of action would be to get the lowest interest rate to pay off the debt. In 6 months to a year, get an A lender to refinance/consolidate the original mortgage and the second mortgage with a lower interest rate. Reach out to us if you have any questions about paying off your debts.

To some, investing is a dream; to others, it's a day-to-day reality. Investing for the homeowner with equity is easily done and can be very much a reality for creating wealth. Warren Buffet’s definition of investing is laying out cash today to get more cash back in the future; he also says he only invests in things he understands and is comfortable with. Having deep knowledge and investing in your work or your hobby is a great starting point if you’re looking for a way to invest your money. Otherwise, I would recommend investing in one of the safest industries in history, Real Estate.

Investing in real estate is a prevalent option for people who don’t want to get into the complexities of the stock market. Real estate investing is simply one of the safest ways to grow wealth. The number one way people become millionaires is through real estate. Real estate is an ever-growing industry, especially how the market has broken records and continues to go up. There are multiple ways to invest in real estate; for example, purchasing rentals are top-rated since it’s cheaper than other investing methods. Another way is purchasing a home, renovating it, and then selling it, known as flipping a house. To get a secure return on your money is to lend it to people who need a mortgage. This is an excellent option. Being a private lender is less known, however very doable for the person with equity in their home. The risk is low, and the return is very moderate compared GICs, mutual funds, and other risky investments. At Anava Financing, we understand and have experience in private lending. We can guide you to make a safe and profitable transaction.

If you have any questions about paying off any unwanted debts or investing in the real estate market, call or email me, and I’ll be happy to talk with you.

Make it a profitable day!

Rudy Lochan

+1 (416) 830-1510


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