I have an unusual question about mortgaging my property and investment… (USA)

I currently own the land and 2 homes that sit on the land. I have no rent, no house payments, etc. The only monthly bills I have are the basic utilities, water, power, etc. I've recently started a home business, very small. I WANT to buy some tools/equipment, I don't need it but I want to get it sooner than later.

I was curious about taking out a loan or mortgage against my land with 2 homes and using that money to buy the things I want, and putting 80% of the remaining money into an interest earning bank account. Is this a common thing for people to do? I have good credit, I could just get a loan, but I saw this as getting a large amount of money and then using it to earn interest as I don't even need 80% of the money as I stated.

I'm looking for thoughts and tips on the situation, I'm under 50 and I'd appreciate any info you all have. Thanks

More real estate tips at Program Realty Wix site

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s