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139. A Tax-Free Way to Tap Into the Equity of a Property Without a HELOC & More w/ Matthew Sullivan

Tax Smart Real Estate Investors Podcast

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The Risks of Trading Call Options

It's not taxable until the option is either exercised or I believe expires. So that could be five, 10 years from now. It doesn't appear on your credit report as debt. You can use it as a down payment on another investment without that being taken into your debt to income calculations. The risks are clearly dependent on the performance of the underlying assets. And we try and balance that by making sure that the homeowner maintains a level of equity after the transaction.

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