BiggerPockets Real Estate Podcast You Could Have More Equity Than You Think! (How to Use It)
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Jul 16, 2025 
James Dainard, a seasoned real estate investor who has navigated hundreds of rentals and thousands of flips, shares valuable insights on leveraging home equity effectively. He discusses creative ways to use newfound equity, weighing the pros and cons of reinvestment versus maintaining low leverage. Dainard also offers practical tips on estimating rehab costs, innovative interior design on a budget, and the potential of private money lending as a passive income strategy. Plus, he challenges the conventional 1% rental rule for today’s market.
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Smart Use of Increased Home Equity
- Use your increased home equity wisely by refinancing only if it maintains positive or break-even cash flow.
- Avoid over-leveraging to prevent financial trouble like in the 2008 crisis.
Effective Budget Interior Design
- Base your interior design for flips on comparable properties and market trends.
- Use realtor input and free design services from suppliers to stay on budget and competitive.
Start Private Money Lending Right
- Start private lending by getting solid legal documents from securities and real estate attorneys.
- Build a team including brokers for underwriting and focus on lending to experienced operators first.
