All Forum Posts by: Randy Rodenhouse

@Joseph Back

Joseph we buy notes in AL (and other states as well) and would like to discuss with you. Give me a call or email.

Here’s a crazy idea. Take a blank bandit sign and write on it home for sale and your number and our in front yard. They will call you.... LOL.  Or a neighbor will call and now you can ask the neighbor what they know.  Yes there is some risks but without risk no reward!  A more conservative approach would be to put on the sign “looking to buy your house” and your phone number....this would look more like a “we buy houses” sign which most are used to seeing.  

@Joseph Feldman

I want to answer your question about rent to own and the benefits versus just renting the property. I think rent to own is much better since you will get a bigger down payment (not just a security deposit but more like 3-6% non refundable deposit) and typically a higher monthly rental payment since people that you’re looking for want to be homeowners and not just tenants. This is the key to try to find someone that really wants a home and not just to be a tenant. Yes this does take some work as well but once you set it up with good tenant-buyers they will take care of the day-to-day small items since it is their “home”.

@Gabriel Cardus You would have to market to Multiunit owners in the area of interest to find sellers that are willing to sell there property with owner financing. It will take quite if bit of marketing. Some websites like Loopnet have filters were you can search for just owner finance deals.

@Don Konipol

This is soooo true that people chase the rate and end up getting burned. The market rates go up and down and if you are always buying right (notes with good collateral, good payor, good LTV, etc) then you will be in the game a long time.

@Susan Elliott

I completely agree with @Bryan Hancock since most of the JV that I have seen and experienced have been very unclear and unprofessional. Having a SEC attorney draw up basic docs and disclosures and should not be anywhere near as costly as a PPM.

@Darren Looker

One of the easiest ways to slash your tax bill is to pump money into a traditional IRA or 401(k). The money you contribute to either account goes in tax-free, and your associated savings are a function of your effective tax rate. That means if you contribute $5,000 to either account, and your effective tax rate is 30%, you'll save yourself $1,500 in taxes just like that. Read book IRA/401K Income Builder.

The others ways related to RE are making extra mortgage payment (interest deduction) or hold profitability investments a year and a day.

If you want to save on capital gain taxes (a separate topic from your question) then you could buy an investment property and later sell it using a 1031 exchange. The 1031 allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value. Usually, you have to keep the new property for 2 years, although some practitioners may say that the minimum time that you must hold the replacement property is only one year. The IRS rules may differ depending on the circumstances and the reason for the sale.

@Luke Lawrence

Yes you could buy from seller with owner financing with $50k down and seller owner finance the remainder on a wrap. Or you could buy it subject to his first loan and have him owner finance the difference. So for example, if he owed $500k and you are buying for $750k then you could buy subject to the $500k and have seller owner finance the remaining $200k assuming you give him $50k down. It depends on what type of loan he has on the property to be able to do the subject to.

In both cases remember that 6-12 months goes fast and you have to be able to refinance relatively quickly. I would try to get the seller to give you more time.

First, I want to say that you need to increase the number of 4000 a month to probably double or triple that of $4000 a month to probably double or triple that because you're not thinking about what it costs in the future to live and plus you made $9000 dollars now per month and you're going to want to live at the same or higher level.   

Second, finding single family houses that will cash flow in areas that are appreciating quickly like Phoenix is difficult. You may want to look at buying some houses that need a little TLC (paint, etc) and then selling on owner financing at slightly above the current value.  This will allow you to get better cash flow and you are no longer a landlord.

@Nicholas Brady

As a person with a PhD I believe that it is not required to do this business however the degree (actually the education) helps you think through processes and look at things differently than if you did not have the education.  I think the one person mentions regretting not getting the degree and that to me is more of a personal goal.

My education was not in the field that I’m in now but definitely has helped me in my problem solving capabilities and thought processes.

However there is plenty of people such as Bill Gates that have dropped out of college and done just fine for themselves since they applied themselves and took massive action.