All Forum Posts by: Randy Rodenhouse

@Justin Robert

The preferred terms would depend on whether it is institutional note or seller carry back note that you are looking to sell. We buy both Seller carry back notes and institutional paper with yields ranging from 10 to 15%. You’re welcome to reach out anytime to discuss.

@Glenda Spears

@Glenda Spears

You said a few things that are contradictory so want to clarify. You said you bought the home with owner financing which typically means the seller deeded the house to you or you may have bought on land contract which means the deed goes to you once you have paid in full. But either way it is your house and he cannot sale a house you own unless you are not paying and then he would have to go through the proper legal process. But the last sentence you talked about renewing the lease. So are you leasing the house with an option to buy (in other words bought on lease option)?

@Wade Kulesa

I am pretty sure Dave Ramsey himself uses debt to buy investment property. It only makes sense. I have been investing with leverage (ie getting kind) since 1992 and still thriving in real estate. I am sure Dave Ramsey is referring to being responsible and putting a decent amount down into the property and not over leveraging yourself.

@Carey L Rouse

It is best when owner financing a house to use a RLMO for all transactions in an LLC. You need to follow the Dodd-Frank rules such as fixed rate loans, no balloons, and showing the ability to pay to name a few.

@Wade G.

I think it is good to see so many people that have the sense of wanting to pay down debt. I have paid down many of the rentals over the years by adding extra principal payments each month, adding one payment extra each year, the biweekly deal, etc. They all work but the best way is when you pay down a large chuck of the principal on a mortgage then you are working with a lower principal balance for the remaining of the loan term. But I think you have to look at your overall cash flow and cash reserves when paying down debt. Once you pay down the debt it is now “locked” into the property and only a cash out refinance will get it out and you need to be confident you have the credit and credentials to get that loan if you are plan to continue investing in RE.

Why have a 401k if you are going to take out of the 401k?  I would not take out money from my 401k since the 401k has a separate purpose which is to allow me to benefit from stock appreciation.  When I take the money out I miss out since you just don't know when and how the fast the market will make a favorable move.  I have very little in this bucket compared to my real estate holdings but some diversification into long term companies in the stock market is probably good.  

@Doug Ford

It is always best to search for lenders ahead of time and have some idea of the possibility of getting refinanced before you buy a property with the intention of refinancing. It should be an ongoing process for investors to be finding lenders to work with since the lending market is constantly in flux.

@Kayla Oliver-Pratt

I would follow your attorney’s advice and do whatever you can when you’re able to in terms of the legal route. Document everything and then go after her hard for damages, Loss rents, etc.

@Arta Montero

In general investors making over $150,000 per year may not be able to use the rental losses each year to offset taxes generated from other income activities. The limitation may be avoided if the taxpayer can qualified as a real estate professional. A real estate professional means you have to meet the time and activities requirements as dictated by the tax law. Once the person qualifies as a real estate professional, rental losses can be used to reduce taxes from all sorts of income including W-2, interest, dividends, capital gains, etc.

@Arta Montero

I agree with @John Casmon and don’t use your retirement money towards the down payment. You are putting all your eggs in the apartment basket. Also since you are not a full time real estate investor you probably will not get all of the great tax benefits that go along with apartment investing so maybe putting your money in syndication and learn at the same time would be best for now.