What is Real Estate Equity?

What is equity in real estate? What is real estate private equity? Understanding equity is a great way to enhance your real estate vocabulary, but it's also good to know because of its relevancy to a real estate career.
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Real estate equity is one of the biggest benefits of owning property.
Homeowners with a large equity can use it to create substantial wealth or to create cashflow by becoming an investor.
So, what exactly is equity?
Real estate equity is the difference between the fair market value of a house and what you owe on it.
To deconstruct this further, if you buy property for $100,000 and sell it for $400,000, you created $300,000. That means the value of your property grew 400% from the time you bought it.
How does this affect real estate agents?
You can use equity to help you grow your career and become an investor, for one. The other idea is that this idea becomes a powerful selling point for homeowners.
When you approach a homeowner with a large equity, they will be more willing to sell their home knowing how much more money they can earn from it.
For more information on how equity can transform your career, watch the full video.
#equity #whatisequity #realestateequity
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Want to know something about real estate? Comment below with what you're struggling with and we'll cover it in a video!

[@GarageFanatic]

Something I would like to share. I’ve been watching a lot of videos on real estate and real estate exam vocabulary and what not. You are the only person that actually explains stuff like a human. And not seem like you’re reading out of a textbook. And I prefer to learn like I am talking to somebody. Thank you for everything you do.

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This means a lot to me! Thanks for this comment. Glad the these videos resonates with you!

[@roughroadrunner88]

Very helpful and easy to understand explanation. Thank you.

[@USRealtyTraining]

Glad it was helpful! Thanks for watching, John.

[@simaabedini3617]

Would you please explain the joint tenecy and tenecy in common . Thanks

[@USRealtyTraining]

That's a good idea! I'll pass this along to the content team!

[@ferrasjweinat8312]

Great Information in this video! Very Very True.....

[@USRealtyTraining]

Thanks for watching, Ferras! Be sure to check out our other videos for more real estate agent career advice!

[@ferrasjweinat8312]

Will do! I'm actually glad to follow these great and informative video clips as I'm currently also enrolled in this upcoming weekend 2 day crash course in Burlingame, Ca....

[@USRealtyTraining]

@@ferrasjweinat8312 Hope the 2-day crash course we everything you wanted it to be! Let us know your thoughts on it!

[@ferrasjweinat8312]

@@USRealtyTraining was an amazing 2 day crash course. I learned a lot of information and Clarissa at The KW office in Burlingame, Ca. was an amazing instructor. She's very knowledgeable about the laws set in real estate and the entire processes during a transaction. She made this 2 day crash course go soooooo smoothly and friendly....Look forward to working with her in the future and upon obtaining my license I have considered joining the KW family. Thanks and make it a great day!

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@@ferrasjweinat8312 We LOVE this. We're so happy that you had an enjoyable experience in the crash course. This would also be an incredible review. Would you mind taking a few seconds to give us one? Google: www.google.com/search?q=ca+realty+training+burlingame&rlz=1CAEAQE_enUS852&oq=ca+realty+training+burlingame&aqs=chrome..69i57j33.11789j0j7&sourceid=chrome&ie=UTF-8#lrd=0x808f9df05a79c6bb:0xd8b71c6d6671b7e8,3,,, Yelp: www.yelp.com/biz/ca-realty-training-burlingame-3 Facebook: facebook.com/pg/LARealtyTraining/reviews Thanks again for your feedback. We're excited for your future in real estate and wish you the best of luck on the state exam!

[@beniterraventures3993]

Very informative.

[@USRealtyTraining]

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[@raymundocardonakwsf5478]

Great video! Thank you!

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Thank YOU for watching! Be sure to like and subscribe the video too. When more people see our content, the more helpful videos, like this one, we can produce!

[@lucylopes2541]

Thank you 🙏

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Thanks for always watching! If you have any terms or topics you want us to cover-let us know!

[@Rawr9zzx]

I’m sorry for the question, maybe ignorant. But I’m new in this world. When u mention to offer from their equity, ( take some from the equity to invest) how it affects us. By becoming ( maybe) their agent? Or we gonna have other source of income through that? Thank you! The topic had been clear explained!

[@USRealtyTraining]

If your client is using equity in their home to finance a new property, then the money will be financed through a lender. The money comes from the lender and is used to buy a new house. Once the deal is closed and escrow deposits the money, you get your check! From a you getting paid perspective, it will work similar to if the buyer gets a mortgage loan.

[@Rawr9zzx]

@@USRealtyTraining thank you for your time!

[@USRealtyTraining]

@@Rawr9zzx never feel bad about asking questions! Always happy to answer.

[@fraihhaddad8089]

Wow, 💪👌😎😎

[@USRealtyTraining]

Glad you liked the video. Thanks for watching.

[@cristianalfaro6837]

Can you please make a video on how you can buy another property while owning a house step by step??? Thank you

[@USRealtyTraining]

Thanks for the suggest, Cristian! We'll see what we can do!

[@dalemcbride3530]

Thank yoy

[@USRealtyTraining]

Thanks for watching! I'm glad you got a lot of information from this video. Also, thanks for being a subscriber!

[@trishaang232]

You explained everything BUT what equity really is. :( I now know the reason why people buy a house, what the benefits of equity are, a bunch of illustrations about it, what to do with equity.. but i still don't know what equity is. Hope you can focus on the definition if the video literally is about the definition. :(

[@Flexed_qt]

Sorry 2 years too late haha but Equity in real estate is like the ownership you have in a house or property. It's the part that's really yours, like the value you own once you take away what you owe on a mortgage. Imagine your home is a big cake. The slice you get to keep after you've paid off some of the mortgage is your equity. As your home's value goes up or you pay off more of the mortgage, your equity gets bigger. It's like the part of the house that belongs to you.