Questions about real estate are welcome here. Here is a list of commonly asked questions sent in to us.

Questions About Real Estate:

How do you leverage equity from current properties into more investment properties?

Let’s define equity first:

Equity is the amount of value inside of something that you actually own.

If you invest into a million dollar house, and there is a $800,000 loan on that house, then your equity is $200,000.

This would also be an example of a property with an 80% LTV (Loan-to-value.)

Typically, banks will not finance any more than 80% of the value of a property asset. This is to protect themselves.

This means If you have maxed out the 80% LTV then you can’t pull any more money out of your property.

You can leverage equity that is UNDERNEATH the 80% LTV. The safer of an investor you are, the lower the LTV you typically prefer.

Across our portfolio, we are averaging a 72% LTV.

The goal for us is to pay things down to get into the 60% territory, before we would consider pulling equity out to re-invest.

There’s nothing wrong with having your houses at an 80% LTV. If you have tenants living in your houses, then they are paying down your notes and lowering your LTV over time.

It’s just not the safest thing to a fully maxed out LTV in my opinion. You want to have some hedge for protection.

Here’s an example where you WOULD be able to leverage your equity:

Let’s say you have 60% LTV on a piece of property. What you can do is grab the 20% difference, (which is 80% minus 60%.) You then can pull that 20% out of the property and invest it into something else, through a HELOC (home equity line of credit) or a traditional mortgage refinance, etc.

Do you recommend working with a tax strategist when growing a real estate portfolio?

Yes. I’d rather not spend all of my time learning all the tax laws or tax codes.

Plus, there is nothing quite like real estate when it comes to tax benefits.

The cream of the crop tax strategies is investing into appreciating assets that you can depreciate right away.

Use someone who can utilize the tax advantages for you.

What’s the best way to start in real estate?

Reach out and book a call with the team to put a plan together about your real estate goals. Also look at our available properties. See the deals. Look at the returns. Start with one property at a time and go up from there.

What does “Turnkey” Real estate mean?

Turnkey simply means that it’s all “done FOR you.” You do not have to waste time looking for properties, comparing the comps, redoing the carpets, adding a new roof, marketing for tenants, etcetera. The process is executed “soup-to-nuts” by someone else (in this case, Wealthcap™!)

How does the whole process work?

Our firm currently hunts down and acquires 25-40 single-family properties per month, located in four unique markets. Many of the properties we keep for our own passive real estate portfolio – but each month we have several overflow that we end up “flipping” to investors. 90% of our investors are “out of area,” meaning they invest in our markets but do not LIVE on those markets. Check out our available properties to see what is available and what kind of returns they produce.

Best way to get involved in real estate when you’re just starting out and you have $50k cash?

Find a really good deal. Invest into it with leverage. Create another bank account. Watch the cashflow come in. Prove to yourself that it works. Then get another one.

If you have more questions just like these, book a call with the team. We will be happy to discuss and begin a relationship with you.

Build Your Investment Game Plan Now

Have more questions about real estate? Book a call with the team to discuss getting started with investing in real estate now. One of our trusted advisors will be happy to share more information with you and help determine what next steps are right for you!

Book A Call Now!

Want to See Our Current Available Properties?


Submit your information here and we will send you our current available inventory.

Show Me The Available Properties!

How many houses can I buy from you?

It depends on our available inventory. We usually sell out of inventory every week when the new list releases. This is because, unlike most turnkey real estate companies, we are our biggest buyer (as in, we are a CLIENT of ourselves). We are not buying just to “flip,” we are buying to hold — that means sometimes we have very low inventory and our investors are first come first serve.

What kind of returns can I expect?

It also depends on our inventory. We usually sell out of inventory every week when the new list releases. This is because, unlike most turnkey real estate companies, we are our biggest buyer (as in, we are a CLIENT of ourselves). We are not buying just to “flip,” we are buying to hold — that means sometimes we have very low inventory and our investors are first come first serve.

What are your thoughts on using services like Roofstock.com to find properties to invest in with tenants?

Roofstock is decent. One of the people we are partnered with now used to be an executive at Roofstock.

The benefit of Roofstock is: you can find a large portfolio of properties.

The problem is you will never develop a relationship with someone at Roofstock.

You can reach out to our team with your exact goals, and we will work with you to find properties that work within your goals. 

Roofstock is a good tool to see lots of available properties out there. But, it’s more beneficial for you in the long term to develop a relationship with a company that is going to get to know you and your goals over time.

By the way you can check out our available inventory here. Take a look at the specs and the returns. These are some of the best returns out there.

What is the average cap rate in single family properties?

Cap rate is really something you use in multi-family. We don’t use it a lot in single family.

The higher the cap rate, the lower quality the deal is going to be, typically. That means it’s going to likely be in a less resilient or less safe neighborhood or market.

We measure single family deal quality based on zip code and quality of neighborhood.

How do you get your first deal zero dollars down?

You don’t. I wouldn’t recommend that.

Plus, you don’t get something for nothing in this world. That’s not the way life works. And that’s not the way good investments work.

Best way to utilize a 401k?

Talk with a financial planner or CPA on that.

Thoughts on wholesaling as a way to build capital and network?

Wholesaling is great as long as you know how to do it, and you’re willing to be in it full time.

You’re not going to be good at it if you do it all the side while you have another primary source of income. It’s better to protect and prioritize your primary source of income, and let someone else come alongside you to help you reach your real estate portfolio goals.

Where can you find private money for refinances on primary residences with around a 50 – 60% LTV?

50 – 60% LTV on a property is really good. That’s a lot of equity in a property which you can leverage to fuel future investments.

This question is about borrowing from private individuals who have high net worth. 

Start connecting with high net worth individuals. (Facebook groups, LinkedIn groups, etc.) 

Be sure to target accredited people.

How do you get financing without seasoning periods to cash out refi rentals quickly?

Seasoning is when a bank gives you a loan and they “season” the loan because they don’t trust you or have history with you. The only way around this is to go into commercial lending.

Check back on this article periodically, as we’ll be updating it with more answers to questions about real estate.

Do you have more questions about real estate that you’d like answered over the phone by our team? Book a call now with the team. We will be happy to help you.

Thanks for checking us out!

In your service,

– Taylor Welch and the Wealthcap™ team

Build Your Investment Game Plan Now

Have more questions about real estate? Book a call with the team to discuss getting started with investing in real estate now. One of our trusted advisors will be happy to share more information with you and help determine what next steps are right for you!

Book A Call Now!

Want to See Our Current Available Properties?


Submit your information here and we will send you our current available inventory.

Show Me The Available Properties!

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