Let’s answer some easy questions first – people buy property, especially investment property to build up equity and make a profit. But what does equity even mean? And how do you go about increasing your equity? Whether you are a property owner who wants to flip your property eventually for a profit or someone trying to diversify their portfolio with real estate investments, finding ways to increase your equity is the best way to increase your profits.

Real Estate

Explaining Real Estate Equity

Very briefly, equity refers to the amount of money you can pocket from selling the property. You could either use this equity to make a profit off of the sale, or you can use it as a way to borrow money in the future for other properties. The more equity you have in a property, the better your ability to invest money to further grow your wealth.

Tips for Increasing your Equity with your Real Estate Investment

By understanding how to increase your equity, you will be able to make more with your real estate investment in Wilmington NC. Here are some tips on how to increase your equity.

Doing Updates

Updating the property is an excellent way to increase the equity on a property. You will get more of a return on your investment with minor cosmetic upgrades than you will for expensive renovations. The problem with expensive renovations is that you don’t usually get all of that money back. However, things like painting or buying updated appliances can be cheaper approaches that offer value to your property. Plus, if it is a rental these updates will help make your rental stand out from others without these modern upgrades.

Curb Appeal

The exterior of your home is a major factor in the equity of the property. This is the first impression that people get of your property, so it is important that you give them a positive first impression. You want people to be excited when they come up to the property, not scared of what they are going to find on the inside. Just putting a little money into the curb appeal could give you an instant $1,000 equity.

Strive for Energy Efficiency

Energy costs always seem to be out of control, which is why energy efficiency is something that can add value to the property. Things like LED lights, smart thermostats, and other similar energy-saving measures can be very appealing to renters or buyers. It can also be worth it to make larger investments for new windows or exterior doors to also improve the energy efficiency of the property.

Creating a Rentable Unit

If you have the money, time, and space to do so, you could consider adding a rental unit onto the property. This is an excellent way to get more rental income and may even help you pay for the property for you.


It’s a wise idea to do what you can to increase the equity of your real estate investment. This will help you have something to borrow from or just give you a chunk of money when you rent or sell the property.

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