All Forum Posts by: Randy Rodenhouse

There are companies that do property inspections, property preservation, securing properties, etc. in all 50 states.  Example is Sand Castle Field Service.  I use them on occasion for the notes and properties that I have in 31 different states.  

I my opinion if you don't have many properties and they are local to you then you can self manage your rental properties. You could even setup a separate entity for the property management and separate it from the owner of the property (which in this is case is you but you may the property in a trust or another LLC). I think especially starting out you need to learn how to manage the properties yourself and then at some point you can get help but unless you have done it yourself first you have no idea on how things work and cannot direct the property management company.

Many states used to be good for doing this however due to many changes in the laws and rules that many states are worth pursuing in my opinion. In Florida, for example the property taxes are a bit down so the interest rate returns are super low.  Georgia is probably the only state I would consider and that as a tax deed state where you are bidding up on the taxes due and therefore must have a fair amount of cash.   A $2000 tax delinquency can sell for say $49,000 if the property has a high enough value (for example $100k or more).  

I usually do one year lease with the right to renew. That way you are not stuck with someone that is either not paying or is a pain in behind.  Also, if the rent rates increase dramatically you can take advantage.  Just because they have a longer lease doesn't necessarily mean that they're gonna stay there longer. They could break the lease.

A big one that you did not mention is the insurance.  Insurance costs have gone up dramatically in many areas.  Also, when buying make sure the main systems like HVAC and roofs etc are in decent condition since is very costly to replace.  

I don't think the Feds will not cut probably for another six months. Even if they do you cut it's not going affect along rate that much and we will stay between 6% and 8% for the foreseaable future. Small changes in interest rates get people excited but overall it's more difficult getting people qualified to buy a house at higher rates and higher home prices.

I don't think judicial or non-judicial is the issue, but instead you need to understand the local and state real estate laws that govern wholesaling activities.

Getting Insurance in the name of the land trust should not be a problem. The named insured has to be the Trust/Trutee name but I also have them put the beneficiary as well as insured.  

First Western Federal and NASB (North America Savings Bank) will do non-recourse loans for IRA. Usually, you have to have 30-40% of the purchase price in the IRA but it is case by case. A good reference guide for SDIRAs is book called IRA 401K Income Builder.

Typically, if I don't have the money saved to put down then I would not do the deal. However, one way to get deals done is to have the owner finance a portion but they would have to subordinate to the first since the primary lender would want to be in first position. Another way is to use funds from your IRA (if you have a self-directed account) as a down payment and then get a non-recourse lender to finance the rest.