CityVest invests in highly selective real estate private equity investment funds.
A home equity loan or line of credit is a form of lending that allows a borrower to use their home as collateral to secure an additional loan amount. Acting as an additional mortgage, a home equity loan essentially borrows against the property. This is assuming the initial mortgage, used to originally purchase the home, has enough of it paid off already.
A home equity loan is dependent upon a home’s current value and how much of the original mortgage has been paid off. Banks issue home equity loans for the same reason they issue mortgages: if a borrower cannot pay, the value of the house should be able to sell and cover the borrower’s defaulted loan amount. The only difference is that home equity loan amounts are based on how much equity a homeowner has in their home, i.e. how much of the original mortgage has already been paid off.
The following are two major types of home equity loans:
Fixed-Rate Loans: A fixed-rate loan is a one-time loan amount is issued to the borrower. The contract provides the terms of how long the borrower must repay the loan in addition to the interest rate. The interest rate and incremental payment amounts do not change throughout the term of the loan. Should the house sell at any time, the borrow is still responsible for repaying the loan in its entirety per the contract.
Lines of Credit: A line of credit is a requested maximum balance that a borrow has available to them courtesy of a bank or financial institution. Borrowers of a line of credit cannot use more than the maximum amount provided to them, but they also don’t have to use much or any of the credit as well. Interest only needs to be paid and comes into play when the borrow spends money from the line of credit. Lines of credit revolve, so like a credit card, a borrower can maintain the same maximum spendable limit if they pay back the amounts they borrow.
Let’s say you purchase a home for $225,000 with a down payment of $25,000, and borrow $200,000. Your equity at closing is $25,000. Let’s assume you make good on your payments over the next five years and have successfully paid down $15,000 of the principal loan, and currently owe $185,000. Let’s also assume that your home’s value has increased. Currently, its worth $285,000. Your equity would then be $100,000.
You could use your home equity, which in this example is $100,000, to secure a line of credit or home equity loan. Most lenders will determine an interest rate and payment amounts, for a home equity loan, and maximum line of credit with an interest rate, for a line of credit. In addition, your location and credit history will factor into a home equity loan and/or line of credit final approval.
Home equity loans and lines of credit are great ways to acquire additional funds if you are already a homeowner with some equity built up in your home. Keep in mind that with these lending methods, you are putting your home up as collateral, so if you are unable to repay the loan your house can be taken and sold to recoup the owed funds. These lending methods are good for borrowers who know exactly how much they will need to borrow. If you are interested in funding a home remodeling project, or paying off an education debt, be sure to weigh the pros and cons and do not be tempted to borrow more than you need.
Every CityVest investment undergoes a thorough due diligence process by our experienced underwriting team. Of the hundreds of projects reviewed each month, fewer than 1% are approved. CityVest can help you:
You benefit through professional investment structures, which target passive returns for our investors in a range from 10% to 25% - often with a preferred return.
CityVest pre-screens investments for you through our underwriting and due diligence process. We partner with institutional investment funds and sponsors and we seek a preferred rate of return.
Since real estate investments typically generate cash flow income, while common stock does not, real estate valuations tend to be less volatile and less sensitive to market risk factors.
CityVest will handle all of the accounting and administration of your investment, while you can monitor the returns.
Building Real Estate Wealth
Browse Investments How It Works FAQ Funds Seeking Capital Sponsors Seeking Capital
About Us Our Team Contact Us
Join Our Newsletter Real Estate Articles Learn Real Estate Education Real Estate Terms
Copyrights © 2022 All Rights Reserved by CityVest Capital Inc Privacy / Terms of Service
Please read the important disclosures below. CityVest.com is a website owned by CityVest Marketplace LLC, a subsidiary of CityVest Capital Inc. (together with its affiliates, “CityVest”). By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service. The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any investment included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance. Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources we believes are reliable, but we make no representations or warranties as to the completeness, adequacy or accuracy of any information provided. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Prospective investors should read the confidential offering materials of any privately offered investment product, including all risk and conflict disclosures included therein, before investing. Please read detailed information about such calculations in the investment manager’s detailed financial and information material. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any other purpose. CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Private placements on CityVest.com are intended for accredited investors (for persons residing in the U.S.), and for persons residing abroad in jurisdictions where securities registration exemptions apply. Private placements of securities are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment. © 2022 CityVest Marketplace LLC. All rights reserved.