Cash-Out-Refinance | What It Is & How To Use It!

[@scoobynooby4122]

he did exactly what he said he wasn't gonna do. confused the F out of everyone by procrastinating and not having a flow to present his info

[@butterpecanrican_]

ok I'm glad I wasn't the only one who was completely lost lol

[@twincherry4958]

Y, I thing biggerpockets is a fluff

[@theoneandonly6741]

@@juanalmos1959 I just want to give a friendly reminder to be aware of where you put your money, putting that money straight back into another deal would most likely make you more money than those CC/Car payments would cost you. Just depends what you’re looking for 🤝

[@colbylevi7]

This video was absolute dogshit

[@karinyr.221]

Exactly

[@letsgonoah5969]

Thank you for finding the most difficult way to explain this

[@nellosnook4454]

😂👍

[@melvinp.h.3069]

Amen. I am a math fanatic and this made absolutely no sense. Some people just have the gift of teaching... Others clearly don't. Now, let's jump to another video and hopefully they'll do the trick.

[@ShizzieShizz73]

@@melvinp.h.3069 I mean, SHIT!!!!

[@_trust9994]

Yep, ended this video within 30 seconds.

[@SuperK1320]

Lost me about 2 minutes into the video 😂

[@17th_Luv]

Glad I looked at the comments. I thought I was the only one struggling to make since of this

[@TheRealNicko]

I now have more questions than before.

[@lockhamj]

Me to, wtf🤷🏽‍♂️

[@anthonymason3501]

Contact jkd850 on Instagram or mail him on [e-mail] or [phone] on WhatsApp(he does not take upfront payment) if you need help about forex trading , Bitcoin, hacking your PayPal, credit score fix, bank account, western union hack, money gram, credit card hack, instagram verification, facebook and many more.. His fast and reliable.

[@thereconracoon3715]

@@anthonymason3501 this doesn't seem like a scam at all!

[@anthonymason3501]

@@thereconracoon3715 just contact him, and you will be glad you did.

[@SmokieJay]

That’s a good thing find the answers to those questions and you’ll be one step closer to your goals

[@tito_esteves6855]

I fell asleep 4xs trying to follow this. I'm in physical pain and just passed out. BP please redo on a smaller scale like a $100,000 home. THX.

[@Emerica771]

Just take a zero off his numbers 🤷‍♂️

[@michaelnjowo8701]

0:40 “I see other videos of people on youtube getting into the weeds” proceeds to talk through an 11 minute video of him getting into the weeds 😑

[@HassanAli-py9ce]

This video is more confusing than my life

[@airjordanatthis]

Hassan Ali then you are an idiot bc this is basic 101 stuff

[@XxowendanxX]

You should seek out a video or some other form of instruction that explains what a cash out refi is. As far as cap rates and the other technical jargon, you don't need to know all that to become a successful real estate investor.

[@AlanJWatkins]

dont buy apartment buildings then

[@airjordanatthis]

Ya just keep working at the bowling ally

[@akadhing129]

You guys being so mean lmao, Hassan's just a slow learner. I got it my first time watching this video, but just practice and try to understand it and i think you;ll get it soon enough

[@tsp8855]

Some things to keep in mind when trying to understand this: 1. Property value = Net Operating Income (NOI) divided by cap rate 2. Property value = equity (your own money) + debt 3. cash flow before taxes = NOI - Mortgage payment What his deal was: take out 400k (possible due to the incrase in property value) and used all of it (and 0 dollars of his own money) to buy a property worth 400k Result: increase cap rate (NOI as a percentage of property value) to 9.71% (vs previous 7.67%) My problem with this presentation is that he didn't include the 400k property's value in the "after refinance" column yet included its NOI and mortgage payment

[@twincherry4958]

You forgot the cap rate formula 😋

[@moneytheory]

Totally agree. The average weighted "cap rate" of both properties would be 145K/1.9M = 7.67% ( which is exactly the same as the individual properties). you guys will enjoy my channel for finance and economics insights

[@irvgottiboss1453]

So if my home went up in value for example to almost 400k and if I want to buy my parents a new home how can I go about this please help ty ❤️

[@saitharunthodupunuri]

@@twincherry4958 How is it 1.9M? That 400K property value is actually part of the $1.2M Mortgage loan. Cash out refi works like this, if you left that house as it was in 2019 (no refi, nothing) then you are getting cap rate of 7.67% because your property value increased and your NOI did not increase with same rate. So to leverage your cap rate with the increased property value, use that value to cash out refi and take that increase (in this 400K) and invest to get more income. This will help cap rate to not fall to 7.67%. Basically you are using bank money based on the new value of your home to get more income. Actually this is cool concept because here property value increased due to time. You can increase property value with renovation (and little time) and cash out refi for extra income

[@twincherry4958]

@@saitharunthodupunuri 🙃 I just got a Heloc and used some of it as down payment...cash flow covers mortgage, insurance, etc., Heloc payment and there's still cashflow.

[@dylandelong7203]

I don't understand what people are so confused about. I think you did a good job explaining

[@unknown-user]

Basic rules of cash-out refinancing: do not do it if interest rates didn’t drop by at least a full percentage point! Thank you very much!

[@philtse115]

Confusing af.

[@knpstrr]

It's wrong, that's why.

[@SoundifyYourself]

Thanks Jesse. I previously understood the concept, but never quite knew how a cash-out refi worked. Your video did a great job of explaining. I will watch it a few more times in the morning to really solidify the information. To those who are hating on this video and claiming that it's extremely confusing - please take the time to learn the basics of real estate investing before trying to understand this video. It is an explanation of cash-out refinancing. If you don't know what NOI is or how a mortgage works, please stop hating and begin by learning the basics. You need to learn to purchase a property before you can learn to refinance it.

[@alannickerson7143]

Do you have any suggestions on where or how to learn about this subject?

[@SoundifyYourself]

@@alannickerson7143 biggerpockets.com and the biggerpockets real estate investing podcast are phenomenal. Check em out!

[@RobMudd]

I would never borrow 400k to make 5k. Maybe a better use of this refi would have been to use it as a 20% deposit on a 2 million dollar property. 25k cash flow before taxes. 👍👍🔥

[@Syphus323]

@Korra Norg isn’t there an interest payment on the borrowed money(equity) when you take it out though?

[@DYTnetwork]

Please write a script when you’re explaining something this complex. Reduces bouncing around and helps you cut to the point.

[@twilllinemanforhire6266]

@Hassan Ali. I thought it was just me! If you have a foot in the game, this video might be helpful. But If you are novice with no experience this makes no sense it actually is CONFUSING.

[@alib5074]

I agree his numbers sound crazy y not start at 200000 some folks are newbies hon.

[@JesseFragale]

@@alib5074 you can divide everything by ten if it makes more sense for your market/experience. Just wanted to use large whole #s here.

[@traceyroman9290]

What is the cash flow after the refi? You left that blank?

[@grapplerke]

I think it would be easier to take a 400K home equity loan, buy a quadplex or two duplexes at 20% down payment. You’ll get more appreciation, better NOI and cash on cash returns. Glad a lot of people were confused with the math. That means there’s still plenty of room to do great in real estate given most people aren’t able to comprehend the math, even with their degrees.

[@rohangangar6210]

LOL, I am a 19yo bachelors about to be 20yo MBA grad, still found this tough to comprehend, but what i understood is you basically get 80% of the appreciation out as cash to reinvest. You said instead of buying in full why not get another mortgage at 20% down with the 400k

[@elizabethzieman1059]

I would hope that between 2015 and 2019 you paid down some f the mortgage principal , thus further increasing the equity you’ve built in the first property. I appreciate the deep dive into the numbers, which unfortunately is scaring people. The simple way to think about it is you’re refinancing to access, leverage and use the equity you’ve built. Otherwise, it just sits there unused until you decide to sell the property.

[@dmvxtrap3232]

Right! he missed out big time on that, with someone else paying the mortgage it means hes paying down the debt which increases his equity as you said but he kind of covered one side and left the other stranded.

[@jaketyler7088]

Honestly can't understand how people couldn't follow; he explained it very clearly with a well-put-together spreadsheet. I like how he actually showed how you can increase your cap rate while at the same time describing the basics of the refinance.

[@lifeofcee6125]

Well, for starters: -He glazed over terms that his target audience (aspiring first time home owners) is most likely unfamiliar with. -He didn't simplify the concept as whole, but instead focused on the math of refinancing

[@dmvxtrap3232]

Only reason I understood this is because I know about it but to be fair he left important factors out of the picture that only make real estate investing a lot more enticing.

[@aauden5930]

he could have explaned it easier without adding the second property

[@steven12012]

I'm glad not everyone understands this concept, otherwise we'd all be rich :) Having said that, I'm happy to help anyone with a question.

[@grayandluis]

Can you cash out refinance when a house is paid off?

[@luisfernandomendez2909]

after many months studying and doing numbers I finally got it... Once you get the whole context of the process and learn the numbers, its much easier. it sounds tricky, but let’s say that the only formula you need to know is just this one: (ARV or New value of the home X your existance LTV) - your current mortage amount = Cash out available Now you have some tax free cash of your equity that can be use in whatever you want, but obviously the main idea is to buy more real estate with it.

[@prestonjmathis]

I'm doing 80% ltv on my primary residence to start investing in real estate. Pulling out 56k in equity.

[@comradenooni9951]

That's how I started, actually that was the second move. Good fortune to you!

[@ryanshort6021]

Kevin you have no idea what your talking about. 80% ltv is standard and the market will never collapse 60%. I’m assuming you’ve never invested in real estate before

[@Fj4LiFe23]

@Kevin Schmidt if his primary did collapse in value he would just stay in his primary and it doesn't effect him at all as long as his cash flow remains......are you just trying to say that prices are at another high and implying a crash..?

[@Fj4LiFe23]

@Kevin Schmidt if that's the case then everyone is screwed anyway and it doesn't matter....should we all do nothing because a crash is always inevitable?

[@Fj4LiFe23]

@Kevin Schmidt im not saying i haven't.... do you do nothing because you always assume a crash is coming....you're watching real estate videos and telling people not to buy...

[@edcfyau]

I don’t know why ppl are saying this is confusing, but i found it to be the opposite. Thanks jesse.

[@CriminalCoreYT]

Yup. Was easy to follow for me too:)

[@bigangscoop84]

I don't understand what this comment section is saying....awesome video, helped a lot

[@friendlyfire7125]

Thanks for the video but I'm not 100% sure it made it into my mind. Can someone explain it simplier ? Or redirect me to a post?

[@derektong]

I don't understand most of the comments. Most other videos just say "then I take out all the money by refinancing and use it for the next home." This video was very helpful in understanding the numbers.

[@amitgolan1215]

Curious how the mortgage stays the same in 2019 after annual payments of ~50k

[@spldrong]

Pretty sure because he was trying to keep it simple

[@bryanshealy1260]

@@spldrong but by doing that it makes it look waaay better than it actually is.

[@Erati243]

@Amit Golan He is assuming that the interest rate is going to stay the same and he is breaking it down into 2 different loans for simplicity sake. Instead of mathing out whatever minuscule amount of the principle that would have been paid off in 5 years he is just leaving it at the initial 800k amount. So the first set where 2019 mortgage payment stays the same is the original 800k loan that you would be replacing with the refinance than the 2nd column is showing the "equity" of 400k that you are pulling out which would cost 25k per year in loan costs. so the total payment for the refinance loan amount would be about 75k. Not sure why he broke it down that way but that's what he is doing.

[@tjsokkerplayer]

Mortgage should be much lower, Interest Rates don't stay exactly the same, there are unaccounted remodeling and closing costs, and the cap rate calculation is wrong at 9.71% (should be 7.67%)

[@RichardxRunit]

Correct me if I’m wrong but I think he was using the same mortgage amount to show that the leverage ratio stays the same (20%-80%)

[@yahyasalaamal-nabil2591]

I understand how home equity works. I got to admit the way you explained it was a little confusing...

[@avauinc]

I just refi cash out 100% this month December 2021. If I was watching this guy's explanation before I refi my home, I would be so confuse as heck! I just did a simple math, my new Appraisal value of my home, minus all my debts and closing costs, equal cash out amount in my pocket. The payment per month is what we anticipating and the new rate is in 3.59%. Part of that cash is to build a fence around the front of our property and to invest in a new venture. Simple things people complicate it so much. God Bless.

[@rwade6885]

What camera are you using? The visual quality of this video is amazing!

[@jasonadkins1455]

I had a lunch meeting with my banker Friday. The whole point of it was to ask him if I could do a cash out refinance on my second rental and I got so interested in talking to him about his rentals that I forgot to ask. Go figure.

[@jjfattz]

This video was too painful to get through. Critical feedback: just get to the point. This topic could've been easily explained in 1-2 minutes.

[@JesseFragale]

sorry for the pain Justin. I wanted to present an example...not just explain what a refi was.

[@EvanAagaard]

You can't make 2min videos on KZbin anymore. They get buried by the algorithm. Every creator needs to be making 7min+ videos even if its all fluff just to make the cut these days. For what it's worth Jesse I thought this was worthwhile and you're right, most refi videos gloss over these details and they need better explaining.

[@dreaneau]

I Disagree, great job

[@satoshisaito6435]

I have two questions. 1. How did you calculate annual noi, annual mortgage payment and cash flow before taxes or was it just a random number you came up with? 2. Looking at these cap percentages, and the equity when you refinance can you explain more on why it is beneficial for the equity and the cap percentages to be higher, what does it mean, and where is my profit in all of this to invest in another property? Thank you for taking the time to explain and hope to hear from you soon ! Happy holidays to you !

[@patricknelson]

As a regular potential first-time buyer just curious about what cash out refi was, the mention of NOI completely confused me. Then there’s the cap rate… I find this _very interesting_ (and would love to learn more later) but it’s a level or two beyond where I’m at right this second. I think your video hit well with folks who were more entry level (and not investors, for example) who ended up confused.

[@wischfulthinking]

I appreciate the less hectic, chill tone of this vid.

[@philtse115]

Yes it is clear as mud

[@cliffcoast]

Thanks & I like how you demonstrated both the affects the refi has on each asset individually and combined. Really allows you to understand the power of leveraging that equity !

[@bencashman1017]

I thought this video was supposed to “simplify” things. I finished watching with more questions than what I had started with. Not a video for novices. I looked up terms and acronyms that I was not familiar with though and learned some new things, I just wish they had been defined in the video rather than having to go look them up myself elsewhere.

[@RiggyRonnie]

Man I really need to learn this, I have 130k in stocks, I’m 22 years old, and NEVER dipped my hands in realm of real estate, I live in a 10k RV and own 30k worth of vehicles, what am I doing with my life.

[@wtficantgetausername]

Not for beginners but after a few other vids going back to this vid showed the principle in concrete details

[@KensingtonPhiladelphia]

i couldn't even finish the video. You make that way more complicated then it needed to be.

[@dellaang]

Hi, after the refinance, why isn't the total property value $1.9M considering both properties for calculating CAP? On the NOI, you sum both incomes so I'd think both property values need to be counted in the CAP, ie $1.5M + 400K. Thanks!

[@MilVukovic]

So many negative comments. If you don't get this video, you have a long way to go in understanding refi and you should probably reach out to someone to try understanding it verbally/face to face where you can ask questions along the way.

[@SterlingWhiteRealEstate]

Knowing what to do with the money once you get it is as important as getting the money itself, if not more important.

[@alphawavesready6639]

Is there a video alone explaining what is equity and basics of real estate, mortgage, fixed rate and all that. I dont care if it's a stupid question.

[@shnukoomz]

Pregnant Nuns you’ll probably have to look them up one by one but yea, there has to be!

[@brunoocampo1224]

Thanks Jesse! This is so far the best video I have watched on the matter. The Excell was of significant help.

[@Bobalantey]

I like how you threw shade first at other videos, setting the bar that your video was going to outdo theirs. Then went on to makena complicated video 😂 well done sir.

[@valoredramack9117]

This presentations seems like it's just a quick refresher for people who already learned what a Cash-Out Refinance is and how to use it.

[@niahall5249]

Great video! I just don't understand why the mortgage amount didn't decrease in 2019. I would assume that 4 years of mortgage payments would have decreased the balance on the mortgage by at least $200k.

[@charlessimon8688]

Same

[@toddthompson3746]

Yep, He missed this.

[@wayneburrell535]

Exactly

[@diffcontroversy]

That's not how a 25yr mortgage works. Even if you're terrible at math, you should quickly see that you're not paying off a quarter of the mortgage in less than a quarter of the time. But if you know anything about mortgages, you're not getting anywhere near 200k in just 4 years. Use an amortization calculator, and you'd see that you'd only have paid about 75k on the principal.

[@uohwqoihwaioubg3iq3w]

Quick question. When you fo this. If you were to foreclose on the 2nd property would you also loose the original property? Or are they two completely separate entities?

[@Jmontastic]

Also figure out the DSCR after refi. Dont become over leveraged. Also, note that your new mortgage will be higher than previous and thus higher DC payments and lower NOI and COC.

[@thoughttrail9567]

Jeremiah DSCR?

[@ryanshort6021]

carlos eliz Debt service coverage ratio, how much the property’s income can cover the debt.

[@guillen2789]

Its good to have more questions. This should happens . Just study and dig deeper and you'll understand everything.

[@uscjake868]

For all the confused people, the simplest explanation is this. You got 100k equity in a paid off house. You can take out a loan on that equity (a cash out refi / heloc, etc). That money allows you to buy another 100k property. Some people might say thats stupid and why would you just shift equity around. It's not stupid if you find an undervalued home you can flip or hold for a while. Then you are making money without sacrificing a solid investment in the paid off house.

[@abrahamc3057]

Right above the 20% @6:33 the 300,000 is actually written as 3,000,000. Where 3000,000/1,500,000 equation is

[@jb4109]

I would love to hear as to when you should do a cash out refi, versus a HELOC. Thx for the video!

[@logophile56328]

In short, a HELOC is generally used as a short-term solution for quick acquisition of the property, and a cash-out refi is used to then move the acquired property into a much more stable strategy for the long haul. For example, I use a HELOC as my liquid capital so that it's available whenever I find a good deal. That way, I can snag it easily by making a cash offer. Then, once I've purchased the property, I do a cash-out refi after the fact, which accomplishes two things: (1) it moves the debt into a long-term, fixed-rate solution so that I can set it and forget it, and (2) it pays off what I originally drew out of my HELOC, which frees my liquid capital back up to look for the next deal. Then, I just rinse and repeat ad infinitum. 😉

[@jb4109]

Scott Kay's, I appreciate the reply. Short and concise explanation!! Appreciate it 👍

[@logophile56328]

My pleasure! 👍

[@RAG718]

how long do you keep it mortgage free (on average) before you refinance and put debt on the property? my understanding is banks normally wont normally allow refinancing until 3-6 months of ownership has passed? have you experienced this.............. ?

[@logophile56328]

@@RAG718 Generally speaking, you're right. A standard cash-out refinance requires the property to season for a minimum of six months before you can apply. However, under the category of cash-out refinance, there's a subcategory called a "delayed-financing exception." This exception is fairly new as it was only created in 2011, so you may have to shop around a bit to find a lender that (A) knows what it is and (B) knows how to process it. Anyway, the exception allows you to do a cash-out refinance immediately after closing on the property. The trade-off is that it comes with stricter (although not insurmountable) guidelines. But, it can be done. In fact, I just simultaneously wrapped two of them up at the beginning of last month, which freed up my capital to buy another one and start the process all over again.

[@Ktriplett20]

Great video but would the mortgage in 2019 be lower considering the person had been making payments for four years?

[@jarrodbergwerf4572]

Kerry Triplett no, because its an interest only loan

[@ryanward9625]

How does debt to income ratio effect all of this? If your example is commercial property, does DTI even play a role?

[@PropGear]

If you're taking on a new mortgage for the duplex you're buying then your overall debt load increases... doesn't stay 1.2M correct? If you took that 400k and bought the duplex cash then your debt load would stay 1.2M but you would have created extra NOI and cash flow... am I correct here?

[@CodyDunlap]

Great video man. I’m shocked to read comments that people are confused. I thought you explained it great!

[@MyGreenNest]

For people not versed in the jargon like me it’s super confusing. If you’re versed in real estate I imagine it’s not.

[@Jesus2500elo]

An Intermediate to higher level video. Well explained .

[@cskillet2003]

Very well explained. Thanks. I appreciate that you didn't talk way too fast like a lot of other guys on YT. Easy to understand if you pay attention!

[@superRecon81]

Actually pretty clear. One question I want to bring up was how much was the purchase price of the Duplex?

[@Dturner24]

400000

[@marcduchamp5512]

Should always leave extra money for unexpected contingencies and costs and not spend it all

[@peakt3438]

it all make sense but it makes me wonder if cap rate is a good way to look at your finance now

[@andyjohnson6948]

I think the cap rate after refinance is calculated incorrectly at 9.71%. You compared the NOI of the two properties to the value of just the 1st. You would need to divide the combined NOI by the combined value ($1.9MM), so the cap is still 7.67%. Debt can’t have an impact on cap rates.

[@miltonromero5533]

I appreciated the effort but I couldn’t follow the logic, the house increase in value but the moriste stay the same, then 9,7 vs 10 is better? Thanks for the effort but I am more confuse.

[@emiliovernon3956]

Ok the reason the mortgage was the same is because the 500k increase in the value rolled over into the previous equity. Meaning you have 700k in equity which also means you only need an 800k mortgage to buy the now 1500000 property.

[@adreanchalas9902]

Yeah idk why this video is even up confused the hell out of me those "other videos" actually helped me more

[@emiliobalreno2605]

What are the typical fees associated with doing a cash-out refinance? Are there a bunch of closing costs, property valuations, inspections, etc. that are required?

[@MrSia-xg9dk]

I had to watch it a second time to understand but now I get it. Granted that the assumptions are correct, it could be beneficial. However, real life situations may vary based on the leverage and equity conditions. Thanks for the video

[@karmaalwaysprevail1202]

Best video ever!! I am dropping out of college and doing real estate.

[@mikepremhms123]

The difference in cash flow is wild

[@AndreiDante]

Where do you find a house worth $1m then goes up in value by 50% 😂😂😂 That's so unrealistic

[@Zeahappy]

This makes sense. i have a property appraised at 8.6 million dollars in 2000. Today it's worth 34.5 million. 20 Years later i'm still paying a mortgage however i'm not paying nearly as much. Thanks to this video i'm in the process of selling and walking away with some serious cash...well not compared to Trump folks...but anyways. Thanks bro!🙂

[@GaryCruz]

Let’s say you have $300k left on your mortgage at 3.625% with a monthly payment of $2k (our only debt). The home is worth $1.1 million. You have $300k cash. Pay off mortgage, or use it for a down payment on another home near the school your kids would attend and rent out the old home at $4,200 a month? Keep in mind new home would be around $2.5 million (SF Bay Area) - any suggestions? Goal is to get to $10mil in assets...

[@casade2831]

Thank you for taking the time. HOWEVER, YOU ARE VERY BAD AT EXPLAINING THINGS BECAUSE YOU DEVIATE TOO MUCH. Really, thank you for taking the time. Who cares !! You have big pockets. ✌️ This video is AWESOME because it gets a lot of comments (negative ones!) YOU WIN, GUY.

[@f.fraijo2736]

To clarify: if I buy a home with my own cash for $40k, and I take out a hard money loan for $50k to rehab, will a bank refinance the home after the rehab is complete ? The ARV should be around $200k...

[@_typi_3552]

Honestly this video is very good. I don´t understand all these bad comments! It makes sense and I´am not even an english born kid. I copied it into my excel sheet. Very good video! Thanks!

[@longterminvestmentsonly4817]

I can understand if everyone is getting confused. Esp if you haven’t invested before or if you dont understand business and numbers. Wat i mean is that basically he used debt to leverage another property with no additional money, he just used the 20% from 2015 to cash out to get 400k and used that 400k to purchase another property. All in all the cap rate improved to 9.7 instead of 7.6 after refinancing. So if he wld had took the 400k amd did nothing with it it wld had been a bad move to pull out the cash, but since he used the cash out refinance to purchase another unit it improved his portfolio to a 9.7 cap rate. This can be confusing to some. I understand, but in a real life situation this is genius.

[@Erati243]

1. Totally agree with the get a script comment. you bounce everywhere. 2. why would you use a 25 year loan, like 95% of loans even for investors are 30 years or 15 years. 3. Why use unrealistic numbers for the target audience of this video. Most people that watch this are gonna be beginners or very new only a couple properties in. Would have made more sense to use 100 or 200k instead of 1m and the math certainly does not get any harder. Other than that i thought it was pretty decent info. Thanks for taking the time.

[@GrahamLivestock]

Was it just me or did anyone else notice in the beginning the “remaining equity” he had $3,000,000/$1,500,000??????? Instead of 300,000/1,500,000

[@gogoldude]

Question: a) Is that the only way you can get a refinance? What if the value of the property didn’t increase or decrease at all this 4 years? b) Why the equity is still 200k after 4 years? Doesn’t the mortgage repayment year by year counts as equity? Wouldn’t it in 2019 be $401,984 ? [( Annual Mortgage ($50,496 * 4 Years) + 200k initial investment] Plus 500k appreciation. Shouldn’t the equity be something like $901,984 in 2019? Am I getting this totally wrong?

[@anamericanentrepreneur]

This is how the major players do it!!

[@black_guardd1194]

If you do cash out refi at a higher amount, does the bank still look at your dti to see if you can service the debt?

[@kimikiminurface938]

I watched the entire video but in the end it left me feeling really stupid ... Thinking I will still need to search out “How refinancing works “ .. I scroll down to the comment section and suddenly feel much better , no one else understood either .. I appreciate the effort though .

[@ochicoloto3524]

8 minutes in to your video. I still don't know where you are going to. The title says cash-out refinance. Your first minute should be able to explain what this means because that's what attracts viewers to your video. You just all over the place.

[@yahsuanyuan8999]

Just a humble suggestion. I think if you kept the video on the calculation screen the whole time it would be better. It gives people time to process the information as you talk. Not that we dont like your face!!

[@chrisegan5996]

The numbers all make sense good video. With cash out refis I see most banks charging a premium because its perceived as a higher risk to the bank especially on investment properties which is the down side but it will help to grow faster.

[@loadingless3406]

dude ok so why would the equity be 700k if it was 200k 4 years ago, that means property value went up 500k yes but weren't you paying off the mortgage during those 4 years so equity should be more than 700k because of the principal pay down right? I'm confused

[@mikereactz529]

This was literally explained perfectly only thing im complaining about is the typo where he put 3 million in the bottom right corner 😂

[@Quick--]

Vid left me more confused than when i started watching

[@titusdorman8215]

Great info, thanks for the help. Starting a cash-out soon.

[@mahbtiu]

If only you'd not switched back and forth between you and the excel screen, then the vid would've been less confusing at least for me. I really need to look at the excel file and ponder the numbers while you're speaking so I can follow you (which wasn't the case and I'm confused af) -.- thanks for sharing anw!

[@marpalpalmer8337]

Thanks so much for explaining

[@engw7090]

Did u miss out the part where u need to pay interest for 400k?? The sheet only shows mortgage cost??

[@block_the_spot]

As someone who has already done two home loans this helped me immensely however I still have questions! I huge thank you for starting me off on the right foot so I can ask more narrow questions.

[@Honeycomblife]

I lost him at the 2 minute mark 😂😂😂😂

[@tbone7509]

Thanks for the video. It would have been nice if you had briefly explained what the cap and cap rate represent.

[@maximusbrandon9971]

I'm sincerely wondering how this is confusing... makes perfect sense. In all due respect, If you're still confused then hit the books.

[@yungjoshheffna]

Makes perfect sense to me too.

[@dracodragon5291]

I think the problem people are having is that they came to this video as beginners and some of the terms in the video are intermediate if you know what I mean

[@anjalipatel1718]

Thank you for posting this video. I do appreciate your effort for this. May I know what is net operating income?

[@allinonemovingcleaningmore9213]

This is confusing for people only because he's talking about a refinance with commercial property not residential.. same process tho!! Good info !!! Thanks

[@JaySkeeteReacts]

damn man, your speaking as if ima pro like you. I'm newly out of the military with absolutely no experience in this real estate world. I have absolutely no idea what's going on here

[@jeffwinick8859]

What is confusing is your 2019 mortgage value. Isn't it more accurate to represent this as the 2019 mortgage balance or payoff amount - which in the intervening years (2015-2019) you would have been building equity (not just from the property price appreciation) so that 800K value should be smaller no?