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All Forum Posts by: Randy Rodenhouse

Randy Rodenhouse has started 7 posts and replied 577 times.

Post: Land Trusts For Rental Properties? Do you Use them?

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

To make it very simple you buy the house in a trust with a trustee (that you trust) and the beneficiary being an LLC or C Corp. depending on what you're going to do with the property for tax purposes. Most people over complicate everything as I see on this post. The trust is not asset protection but the LLC or C Corp. provides that since they are the beneficiary.

Post: South Carolina Withholding Tax for Non Resident

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

@Matthew Shay

It should not matter if you're an LLC elected as an S Corp. or an LLC elected as a disregarded entity since the tax consequences are the same and both are flow through entities. The state tax is based on the amount of gain from the sale over and above your basis less expenses, etc. You need a good CPA to explain the details to you.

Post: Why would someone NOT want to sell their property to an investor?

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

@DeAndrea Douglas

In general the public thinks the investor is going to lowball them and try to steal their home. Of course in reality this is not always true but it’s a perception that exist. Many times you can create a deal where you pay nearly full price and still have a cash flowing property if you know what you’re doing. But this needs to be communicated to the homeowner in a way they understand.

Post: Does my realtor know what he is talking about??

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

@Rick Oaks

This is a somewhat of a flippant comment by the agent. The agent should ask more questions on what exactly are you going to do with the property... is it a buy and hold or short term fix and flip it or exactly what is exit strategy. The rate is important on a large deal where you plan on holding for awhile and not so important when short term deal.

Post: If you have CASH, should you use it to finance your deals?

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

@Andrew McCotter

I agree with @Karen Higgins overall. I think you have to use your cash wisely since it’s hard to replenish it when it’s gone. Leverage is key as long as the deal cash flows. You can use your cash when find a great deal at say 60-65% of value and don’t want to lose it but this is rare. I would definitely only use a small portion when you are not. In fact, try to get the owner to finance the house and use even less cash.

Post: Seller's Agent Demanding I Stop Speaking w/Seller

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

@Brenden Mitchum

I would not worry about the agent and pursue whatever I wanted with the seller since the agent doesn’t own the house and the person that makes the final decisions on the terms of the sale is the seller NOT the scarcity minded agent!

Post: How do I get money for another buy without an investor

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

@Evan Rodriguez

There are many private lenders (not traditional banks) that will lend on the property itself and not based on your debt to income. The income will have to show a certain debt coverage ratio. Also they do portfolio lending so if you have more than five or so properties then they would lend on the entire portfolio.

Post: Seller financing using a Mortgage

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

@Jim Roach

OKlahoma is a mortgage state so you will be using a note and mortgage. Find a local real estate attorney and he or she will draw up the note and mortgage. Yes there are templates out there but I think it is best to find a professional to help to do it right.

Post: Looking for find out what my options are

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

@Derek Dombeck has a good point. I know that there are federal laws that allow heirs to assume mortgages and I think there is a high probability that you can call the servicer or bank and ask them what the process is to formally assume the loan.

Post: Is this a good subject to deal?

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

@Darren James

Just a word of warning on selling on land contract (as called contract for Deed) in Texas. Residential lease-options exceeding six months and contracts for deed were both dealt a near-death blow by changes to the Property Code made in 2005. As a result, only a few types of residential owner financing remain practicable. I would suggest consulting an attorney before you proceed.