Should You Pay Cash For A Rental Property

In this video, we're talking about whether or not you should pay cash for a rental property. This is a difficult decision, but one that can have a big impact on your financial future.

If you're looking to invest in real estate, then you may be wondering whether or not you should pay cash for a rental property. On one hand, paying cash can give you a higher return on your investment. On the other hand, some people may believe that you're not getting the best possible deal if you pay cash.

In this video, we're discussing both sides of the coin. We'll help you decide whether or not paying cash is the right decision for you!

How to make money five ways from real estate.

[scottjohnson]

Maybe I shouldn't have paid cash all these past years, but I have paid cash for all of my rentals. I do all my own management, and I do all my own maintenance. My cash flow is over 17k / month. I will never have to worry if someone moves out of my units.

[bluefrog]

This is 9 minutes of good advice about limiting exposure and one minute of barely touching on buying rental properties cash.

[jayc]

Yes..buy them cash.... 1. You can get a MUCH better deal, 2. You can buy fixer uppers that banks don't want to deal with/ won't pass inspection 3. Less fees, 4. No interest..5.no risk of foreclosure..peace of mind.5.much more cashflow..6.less tenants to deal with.7.its also faster.

[stevesilver]

"My hats are off to you!" Ninja has many hats!

[glennjsoucy]

I had a friend who bragged to me about buying two rental homes with only three percent down. He said his cash on cash return was amazing. Then one tenant moved out, and the other refused to pay rent. By the time he got the person out, both homes were in foreclosure. It's best to put down at least twenty percent and have some extra room.

[SirCarlosMusicBMI]

AWESOME ADVICE 👏👏👏👏👏👏👏❗️❗️❗️❗️❗️
Can’t wait to start buying up some rentals at the right time.
Blessings, Carlos ✝️🙏❤️😊❗️

[analuizanb]

I've been keeping an eye on the website of a cabin builder company here in Texas for a year or so. They have always built on demand. Today they launched a new section of the website called " Ready now" cabins. There are 5 of them... Pretty sure those are cancelled contracts.

[JA-vvwy]

We have literally been wondering if we should pay off our rentals or re-finance when the time is right to get our money out & put it back to work

[banginzaza]

I just want to find the best ways to buy rentals cash. Yeah I know the benefits of leverage and debt. I just hate the sound of debt on rentals.

[VicciWilliams]

New to your channel. Low income and still interested in realestate

[WorldMoneyWins]

I'm telling the Ninja you were in his garage!!

[vincentboyer]

Is it a good time to use a HELOC to buy some investment real estate now or wait?

[greaselighting]

Gonna pay cash for a rental to get some money out of the banks. Been debating financing. Still up in the air.

[h.h.]

I’m looking to buy my first rental. Thanks for the video! I can’t make the math work at 8% mortgage rates. To break even, I’d have to put down more than 50% cash down — just to break even. I have to buy cash to make any money on it. Is there some trick to it in the high mortgage environment we’re in right now? Or do I just eat the zero income till rates improve? That’s too much risk.

[freeworld]

How would people know yiu paid cash, if you didn't tell them??

[cathyyoung]

My husband and I own a 4plex. Is it wise to sell it now. We don't know what the future will bring. Will the renters be able to pay their rent? If taxes go higher and higher, will we be able to pay them and the upkeep?

[Cooperstraffic]

Ninja.. how about property with well and driveway ? Cash the mortgage to build ? I’m in Canada.. Love ya man !!

[UltimateBargains]

Selling luxury real estate is easy when you know how. The main problem is that realtors are marketers, not deal makers.
Ask the seller to let the buyer buy on seller financing, and then sell the note to a 3rd party note buyer.
With a properly structured deal, the seller can realize a higher sale price, more net cash than a traditional sale, and the existing debt may be paid off at the note sale.
The buyer that had trouble qualifying with a traditional bank loan can buy with a lower down payment and easier qualifying.

[UltimateBargains]

When using all equity financing, from the point of view of the recorded property title, the parcel is "free and clear" of any debt. However, the wise investor writes a promissory note and security instrument (mortgage or deed of trust) to the benefit of a distinct "financing LLC" (recommend Wyoming LLC) that is wholly owned by the investment group, so that the parcel appears in the public record as encumbered with debt. This also prevents over-encumbering the property (equity skimming) by the common equity tranche (silently refinancing the property and skipping off to warmer climates).

The "financing LLC" is capitalized by the promissory note(s) with Unpaid Principal Balance (UPB) slightly greater than the apparent equity in the real property. You make annual interest-only payments to the "financing LLC" to maintain the debt level and to convert the cash flow from the property into interest payments to the "financing LLC".
Deficit interest payments will increase the UPB, thus keeping pace with asset value appreciation.

Using a Wyoming LLC has the benefit of strong privacy protections. If the creditor sues and wins, then the Wyoming LLC has charging order protections, and the creditor must pay the IRS for phantom income (i.e., unreceived income).

This asset protection strategy also applies to encumbered properties with sufficient free equity to justify using the strategy.

This acts as a disincentive for predatory litigation by unscrupulous attorneys (vexatious litigants) who search the public records for high equity parcels. They initiate frivolous costly lawsuits against the high equity property and the ownership is forced to settle out of court to reduce its potential liability of an unfavorable judgment.

Most vexatious litigants will simply ignore a property that has apparently high debt recorded against its title, because secured debt on the property title has higher priority than a judgment when the debt was recorded before the event that caused the lawsuit action. The "financing LLC" could initiate a foreclosure action to wipe out the judgment. In conjunction with owning title in the LLC name, rather than a personal name, this provides strong protection against judgments.

[ddutton]

Ideas on hard money lenders? Good or bad? Just trying to get started in all of this.