How to Use Real Estate Equity to Fund Your Next Investment

If you own property with equity, you may be sitting on the key to growing your real estate portfolio. By using a cash-out loan on a paid-off or high-equity property, investors can access funds without income verification and use them as down payments through DSCR loan programs.

One of my favorite strategies in real estate is also one of the most powerful—and surprisingly underused. It’s a method I personally use and recommend to anyone looking to grow their investment portfolio: tapping into your existing property equity to buy more real estate.

Let’s break it down in simple terms.

Got a Paid-Off Property? You’re Sitting on Opportunity

If you already own multiple properties and at least one is paid off (or has a lot of equity), you might be wondering how to leverage that asset to expand your investments. That’s where this strategy shines.

We offer lending products that allow you to cash out the equity from a property—often with no income verification and minimal credit requirements. This gives you access to liquid funds without needing to sell your property.

How It Works: The Cash-Out + DSCR Strategy

Once you pull out that cash, you can use it as a down payment for other properties through DSCR (Debt Service Coverage Ratio) loan programs. These programs are designed for investors and don’t require traditional income documentation. Here’s what you’ll typically need:

• 25% down

• Closing costs

• Some reserves

With that in place, you can keep repeating the cycle—use equity from one property to buy another, and then repeat. Think of it as building a ladder to financial freedom, one property at a time.

What Makes This Safe?

The beauty of this method is that lenders usually let you borrow up to 75% of the property’s value. That buffer means you’re not overleveraging yourself. In most cases, your new property will still cash flow—whether you rent it traditionally or list it as an Airbnb.

You won’t be stuck asking, “What if I can’t cover the mortgage?” The cash flow often handles the payment, and you’re building wealth while staying financially secure.

The Long Game: Compounding Equity

This isn’t just about buying one more property. It’s about playing the long game. Each new purchase builds more equity, which you can eventually tap into again—especially during favorable market conditions.

Here’s the bonus: when interest rates dip, you can pull even more equity out at a lower rate. The money goes into your bank account, tax-free (since it's a loan), and your payment may stay roughly the same. You’re not only building wealth—you’re doing it strategically.

Final Thoughts

This is something I’ve done myself, and it brings real joy—not just because it works, but because I know how many others could benefit from it. If you’re serious about growing your portfolio, compounding your equity, and building generational wealth, this is a strategy you should absolutely consider.

Want help figuring out how this could work for you? I’m here for that.

This is one of the most powerful tools I use personally—and you can too.

📲 Text “FIVE” to 956-478-0700 or visit www.drjacobwiley.com to find out how.

Let’s grow your portfolio—one property at a time.

Best,

Dr. Jacob Wiley

The Real Estate Doctor