Broker Julie Busby shares some tips to help you make information about HELOCs and real estate investing the centerpiece of your spring content marketing efforts.
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This Spring Market, creativity is the name of the game for me, my team, and my national planning group. With interest rates constantly changing, inventory at historic lows, and real estate lawsuits and settlements making headlines, it’s more important than ever to think outside the box and provide clients with strategic opportunities based on data and ideal timing. Tested.
One of the strategic, creative, and free-flowing ideas my team and I recently launched was to remind and educate our clients about the opportunities available through Home Equity Lines of Credit (HELOCs).
What is a HELOC?
A HELOC allows homeowners to borrow money against the accumulated equity in their home, usually paying only interest. You can then purchase a second home or investment property, creating a new source of passive income and expanding your investment portfolio.
Alternatively, you can also use a HELOC to renovate your existing home, creating additional equity and a higher potential sales value. In all cases, a HELOC is a great way to gain equity without moving or selling your existing home.
Harness the power of fairness
Since 2021, home prices in Chicago have appreciated an average of 21%, which is lower than many other cities. After brainstorming, our goal was to inform our clients of this news and provide examples of how to use it to their benefit. I can’t think of a better way to demonstrate literal value to your customers.
Share news with customers
I recommend building a list of clients who purchased homes at least five years ago. Draft a simple email or letter outlining the appreciation experienced in your area and the specific benefits of a HELOC. You may also consider working with a lender to have a greater impact.
Looking for a sample letter to get you started?This is what we send Posted on our website:
hello,
I hope you are well!
We’re in the midst of Chicago’s spring market, which means my team and I are working on creative deals every day that benefit everyone involved – one of my favorite parts of real estate!
Since you purchased your home a few years ago, I’m happy to share with you that Chicago properties have appreciated an average of 21% since 2021. This is great news because it means your home equity has increased!
Some of our clients ask us how they can creatively utilize their equity even if they don’t want to move or sell their current home. One example we recently offered to clients is a home equity line of credit (HELOC). As you may know, a HELOC allows you to borrow money against the equity in your home, usually paying only interest. We have had clients use HELOCs to purchase investment properties and/or second homes and have been thrilled with the results. Those who purchase investment properties through a HELOC realize appreciation by owning an income-producing property.
If you would like to explore this opportunity further or develop an overall strategy (one of my favorite things to do!), please let me know. I’m happy to be introduced to one of the lenders we work with regularly – we love our short list of lenders because they are all knowledgeable, creative and communicative.
I look forward to hearing from you and hope you are well.
Next steps beyond a HELOC
Even clients not interested in HELOCs will appreciate the creative and resourceful thinking. After we emailed about the HELOC opportunity, several customers responded with questions about other types of investments – we just asked them to turn. Referring your clients to creative lenders that you trust is an important next step.
All in all, HELOCs are a great example of creative thinking that is more important than ever for real estate agents and brokers. Adding value and a different perspective shows customers that you are thinking about them and wants to create new business streams at the same time.
Julie Busby Founder and President busby group, and ranks among the top 1% of agents in the Chicago area.follow her Facebook and LinkedIn.
