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.
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[@RealEstateNinja1]

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[@mstrmd1]

Real Estate Ninja... got a reply on my comment here. Your picture, asking to text for info. Is this you!?!?! Btw your crushing it!

[@CMS069]

So what should you do if you can pay of your home loan you live in but want to move within 2 years top to buy a home with property in a new state . Will need those funds from house 1 to buy my new house because we don't want a mortgage in home 2. Retired currently..... Scary times in April 2023 Thanks

[@banginzaza]

Money! Money! Money! 😂😂😂😂

[@scottjohnson921]

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.

[@Salaam-Peace]

Hello, Salaam, As a religious conscious person I want to stay away from debt. But to do real estate requires alot of money. So how much did you save in a year and for how many years did you save to buy rentals?

[@CharletteBillingsley]

Find a professional.. honestly to not overextend yourself. Be an expert at something that best fit and let the other expert be resourceful to.. more money but less liability and problems

[@jayc4715]

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.

[@bluefrog8670]

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

[@glennjsoucy9052]

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.

[@andyoohhh2061]

It sounds like the issue was he didn't have emergency money and over leveraged.

[@stevesilver1241]

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

[@RealEstateNinja1]

Thank you Steve

[@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.

[@mg-by7uu]

Yeah 6 months from now those same cabins will be there but be labeled "Been Ready" 😂

[@SirCarlosMusicBMI]

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

[@JA-vv8wy]

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

[@huckfin1598]

Why didn’t you refinance when rates were below 3%?????

[@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.

[@anthonydooley3616]

The title should be, "How to reduce liability on rentals." Regardless if the rentals are paid off or have debt on them has nothing to do with the outcome of a liability case in a court of law. Have good liability insurance, have an umbrella policy, hold property in an LLC or preferably in a trust. Don't go broke setting up entities before removing obvious hazards from your properties.

[@greaselighting101]

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

[@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.

[@WorldMoneyWins]

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

[@petroseshetu6572]

Great advice as always!

[@freeworld2275]

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

[@h.h.1266]

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.

[@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.

[@cathyyoung4062]

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?

[@70rickterscale]

Good stuff Ninja 👌🏼

[@mrguiltyfool]

I wonder if those tips apply to Canada

[@chaddavidson1030]

What is bare minimum on property?

[@firebird77clonefirebird89]

Hey Ninja Firebird here Please do a video on how to set up an LLC and what is necessary therein. Firebird out

[@MJ-ge6jz]

Also, when you barrow money from you LLC you don't pay TAXES on it!

[@JD-vm5wl]

Thank you for this information!

[@Simplyarlenealvarez]

Are there people or companies buying all cash for townhomes? Just wondering who these investors are if it costs like $400k? Rents for like $3k. Especially in this market with high interest rates, are there special loans for investors that are better rate than residential mortgages rates?

[@socalslider]

Awesome video, helps a lot!!

[@dandydonslife9869]

Ninja, good word, thanks.

[@VicciWilliams]

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

[@vincentboyer1152]

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

[@ryanwolf4101]

Good info bro

[@MyMy-ug8wv]

What can you do if you if your IRA owns the rental. Can you talk about that

[@ozzyalchemist8806]

Q. So old mate on fire, his lawyer can only go after the rental management company, not all the entities & cash paid property?

[@jeffreylange]

@Real Estate Ninja - In your opinion, what would be the "ideal" passive income stream... one where I would be able to focus time/energy on ministry but be able to support my family and ministry. BTW - I'm still waiting for video on how you make your brohawk in the morning.

[@johnyracercat]

I think most ministers build up support on KZbin, etc. If you have some time to work, insurance that pays renewals is very time flexible and partially passive once you build it up. Medicare and ACA.

[@glassboi5401]

How does the management company pay u after an incident I don’t get it

[@JA-vv8wy]

What are your thoughts on using a Series LLC, instead of having a different LLC for each property?

[@garycrecelius1926]

A series LLC for rent house is better because each house is separate in this LLC ! And under a regular LLC they are all in one ! So series LLC are more protected then a regular LLC!

[@Cooperstraffic]

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

[@ddutton0]

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

[@danbob1650]

Yeppers we have a lot LLC, need a trust

[@ritaroo3538]

Newsweek Crash Worse Than 2008 Crisis Predicted for Commercial Real Estate COULD learn from Ninja

[@alanhart1238]

what about getting absolute title on property?

[@clintcowan9424]

I told economic ninja and he asked how you got a key to his garage ? 😮

[@PourUnfortunateSoul]

How would this work with eventually giving the property or having the property go to children in case of death?

[@briansmith4724]

Hey, Hey Ninja you are Crossing a Line. I am a 20 year Sky Diver. Do Not Dis jumping out of planes. 😅😅😅 Be Well Ninja 🙃

[@panje-wagon]

Enjoyed

[@lautburns4829]

Toby explains it better.😂😂😂👍

[@jimtillapaugh5551]

Yayyy 🎉🎉🎉🎉

[@RealEstateNinja1]

Hi Jim!

[@jimtillapaugh5551]

@@RealEstateNinja1 Great job Travis ☕️

[@sturat18]

Really strange video. Title suggests he would be going over the pros and cons of cash vs leveraged deals, but instead it’s really about how he thinks holding loans against the properties in various llcs protects from tenant legal issues. Both the advice around the legal end and leveraged/cash end are both suspect, viewers.

[@annadonahue4119]

Wow

[@darrylgalvan844]

👍🏽👍🏽👍🏽👍🏽

[@mattmatt7998]

🤔 nice one Ninja ! 🥷

[@mstrmd1]

Great info per usual. Save your cash. Opm. Other Peoples Money!!! Btw your houses look like rockets 🚀. But we still love you!

[@SenorTucano]

Hola Ninja 🥷 Can you elaborate further on paying your wage through a management company. Thanks