Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Randy Rodenhouse

Randy Rodenhouse has started 7 posts and replied 577 times.

Post: Leads, Breaking out of what you know

Randy RodenhousePosted
  • Investor
  • Charleston, SC
  • Posts 606
  • Votes 412

First let me say that when a list provider of website cla "motivated seller" then run.  No on knows if a person is motivated unless they spoke to them directly and maybe went to the property and had a face to face conversation. So if you see some selling this BS run!

Now to answer your question about off market deals or off mls deals then the answer is marketing.  In order to find sellers you need to do direct marketing (letters, postcards, etc) to different areas and different lists like out of state owners, pre foreclosures, divorce, etc.  If someone gets you marketing peice and takes the time to call you then there may be some motivation there and you pursue that lead.

I heard a podcast that said Arbor Realty Collateralized Loan (CLO) portfolio with over 300 loans is showing a weighted average debt service coverage ratio of just 0.63. It is basically a disaster and a guy named Gabe Bernarde is co-founder of Viceroy Research and has written a report called “Slumlord Millionaires”, that covers a well-known bridge lender who has been doing a lot of lending to multifamily sponsors. The report reveals an entire portfolio of multifamily loans that appear to be underwater and that are wrapped up in CLOs. In theory, CLOs are bullet proof because the lender who owns/manages them can swap out poorly performing loans for better performing ones, protecting the integrity of the entire portfolio. What Gabe's research concludes is that this structure is fine until all the loans in a portfolio, or a substantial majority of them, are bad. Then you have nothing good to replace the bad.

Post: W2 Tax Deduction with a Syndicate?

Randy RodenhousePosted
  • Investor
  • Charleston, SC
  • Posts 606
  • Votes 412

You will only be able to use the depreciation against passive gains since you're a W2 employee.  It won't offset your earned income. If you were a RE professional then you can deduce but becoming a RE pro with a full time W2 is next to impossible.  Note: you don't lose the depreciation since it just keeps rolling forward year after year. So, if you make a big gain when that syndication sells, you'll be able to offset some of that.  Also note that below $100k of W2 income you can deduct up to 25k in passive losses (it is a little more complicated since phase out between 100-150k income).

Post: Seasoning Periods for cash out Refi's?

Randy RodenhousePosted
  • Investor
  • Charleston, SC
  • Posts 606
  • Votes 412

It is very specific for each scenario.  

For example, Fannie Mae loans if an existing first mortgage is being paid off through the transaction, it must be at least 12 months old at the time of refinance, as measured by the note date of the existing loan to the note date of the new loan.  Also, at least one borrower must have been on title for at least for six months prior to the disbursement date of the new loan.

Unlike the requirements for a cash-out refinance, there is NO seasoning requirement for a limited cash-out refinance.  A limited cash-out refinance replaces your existing mortgage with a new mortgage with better terms. The new loan is often a higher amount to help cover closing costs.  HOWEVER, in this scenario, you can pocket $2,000 or 2% of the new loan balance, whichever is less. 

To make it even more confusing, in Feb 2023 Fannie Mae announced that it is increasing the seasoning requirement for cash-out refinance transactions from 6 months to 12 months.  That is why you are getting different answers.  Some lender are not updated.

I am not an expert at mortgage origination so please find one TRUE expert. However, I am an expert in buying mortgage notes.  

Post: Need clarification on a 1031 exchange term

Randy RodenhousePosted
  • Investor
  • Charleston, SC
  • Posts 606
  • Votes 412

The realized amount for the property sold (property relinquished) is calculated by taking the price you sell it at minus any costs to close. Let's assume the previous property sells for $550,000 with final costs of $50,000. Thus, $500,000 is the realized amount.  Calculating the basis for the new (replacement) property in a 1031 exchange is simpler--the purchase price plus the commission paid. The basis for the new asset must be equal to or greater than the relinquished asset for a successful 1031 exchange.

Post: When should I choose ACV over RCV insurance for my rental properties?

Randy RodenhousePosted
  • Investor
  • Charleston, SC
  • Posts 606
  • Votes 412

With that small of difference ($30/mo) then I would go with RCV.  Many people forget that with a ACV policy the insurance company will depreciate the heck out of the house and you will end up with very little check from the insurance co.  For example, recently had claim on house for hail damage to roof.  They were to give $10,900 less deductible and less the $6000 for depreciation of the roof.  Therefore, if I choose ACV then only would have gotten around $3300.  But since I had replacement policy I received $9400.  Big difference (~$6000).  Now how long would it take at $30/mo to make up the difference...200 months or about 16.5 years!  It is all about the math.

Post: Asset protection strategy tier list: Worst to BEST

Randy RodenhousePosted
  • Investor
  • Charleston, SC
  • Posts 606
  • Votes 412
  • I usually buy each property in a different land trust and have my LLC as beneficiary. I have several LLCs and do not think it is practical to put each in a separate LLC but spread it out based on risk. It is important to get a trustee that you TRUST. Don't just pick anyone. Also trustee with a different last name.

Post: Private Loan, Note Purchase

Randy RodenhousePosted
  • Investor
  • Charleston, SC
  • Posts 606
  • Votes 412

He cannot create a note and mortgage without the exchange of money. You need to ask the borrower to setup LLC and then he will buy the property in the LLC. You would lend the money to the persons entity so it is a business purpose loan. You need to get a title/escrow company to help you carry out this transaction.

You need to find another insurance company. You said the insurance company said no because it is a residential property and therefore cannot have LLC on the policy? That makes no sense. I have may properties deeded in an LLC and tell the insurance to put my name and the LLC as insured. Remember the LLC is pass through entity with you as member. You do want the name on title and the named insured to match.

Post: I'm new to investing and want to learn more!

Randy RodenhousePosted
  • Investor
  • Charleston, SC
  • Posts 606
  • Votes 412

If you are new to investing I would not start out with the BRRR method especially in today's environment. Here is why?

You have to buy the property right and at a low enough price, you have to renovate the property and there are sooo many things that can and do go wrong with the rehab process. Then, if you get the renovation done successfully, you now have to find a good tenant. Then you have to manage the tenant and deal with maintenance and repairs. Now after all that, you have to go to a lending institution and try to get a loan and there are many requirements (as explained above) making it difficult to get that loan.

Wow! So many moving parts.

Even just doing one of those is hard enough, but now you have to be an expert in finding discounted properties, rehabbing properties, rental and property management, maintenance, and raising capital and getting loans.

The BRRR strategy stacks the odds against your success when starting out.