Rent The House Don't Sell It
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- Опубликовано: 6 мар 2024
- I Told My Friend To Not Sell His House & Instead Rent It Out Because Of His 2.8% Interest Rate.
#shorts #rental #realestate #wealth #wealthbuilding
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This is all based on the hope that all bills get paid and the folks on both ends are honest.
They use contracts for that.
Exactly. In perfect world
Had that mindset they would not get mortgage sales
@@elvinmunoz8937That doesn’t mean it won’t take 3-6 months to evict him or her and hope they dont trash the place
@@brianasbell5856 That's why you have to do your homework on where you buy the rental property and do proper vetting to see if the person renting is a proper fit.
this man is one big walking red flag
How is that ?
@@tsaunders4684 Take a course how to detect a scammer. One of his video’s someone invests 20 million but when he checked the books Grant didn’t want his 20 million anymore, his clients must trust him on his words. Biggest red flag you can get.
@@tsaunders4684Because he makes his money off of selling his teaching programs to people...
And?
You buy things from companies that are bigger red flags. What's your point?
@@tsaunders4684 lol these morons just repeating hate they hear yet they can't stop watching 😂. Ignore the haters.
Because everyone can carry a $4.8 million loan while qualifying for another loan.
Anybody with a 4.8 million loan it’s not exactly broke 😂 that’s most likely only 35 of net income.
Exactly. And no one is going to rent at a 6% finance.lol. this guy is a joke. Even now a days with my salary and credit score, I got a house at 2.5%. And I still couldn't afford two houses at that price.
@@user-ki9le5wj8phe’s saying seller finance the property at a 6% interest rate. That will cash flow over the current mortgage with a 3.2% rate. My friend buys property cash and seller finances then to people who have bad credit and can’t get loans. He locked some guy in at 8% for a full 30
@@user-ki9le5wj8pDSCR loan requires no income. 6-12 month of reserves.
I'm not agreeing with Grant, but if you take a rental agreement or mortgage note you hold to the bank, that isn't counted against you in your debt to income. - Realtor
He makes it sound so simple, when you have people squatting in homes and giving owners HELL.
He's explaining the concept, not saying it's easy. You think he hasn't dealt with problems like that?
Yes, the reality always harsh. Not as easy as he speak
Not when you offer owner finance. Renting is something else but with owner finance he can charge a higher rate than his current interest and take the house back if he misses a payment
@@gsgcarreviewsalso... the buyer is paying a large downpayment. That means the buyer has skin in the game.
We just need to give them 2A
All fun and games until the original bank calls the note due…
huh? its a mortgage. its a 30 year loan. the original bank will never call the note due
@@jeepguitargod he’s owner financing his home without paying the original lender I. Full
Lol 😂 unfortunately it's not sold till it's paid in full so it's a rent to purchase and Bank can't call in loan unless he gives title
@@boogierhea6515 it’s called a wrap around mortgage. Do a little more research before commenting. He’s arbitraging the difference from the bank loan int rate and the new Owner finance rate. Deed transfers without original bank knowing. Once they find out, loan can get called due.
no , he means pay off the banks, then sellers finance at 6%. legal
@@johnford8335
“Just rent it out, it’s almost like a rental!”
😂😂😂
Came here looking for this -
Thank you. This comment section is full of retareds
😂😂😂😂😂😂
He meant to say just sell it subject to the existing mortgage in place I'm sure lol
Only problem is you can’t owner finance a property you don’t own.
Thats where you're wrong.
Yes you can. It's called seller financing. You create a note between yourself and the buyer, no bank involved.
Or, if you don't want to give up the deed right away and keep ownership til they pay you off you can do a land contract also called contract for deed, and then do seller financing.
Plenty of ways to buy and sell real estate my friend.
Did that once. Mortgage company not happy. Just😅about lost house.
@@maryhybki3631don’t speak to direct, these morons will get upset 😂😂
Anything goes in this wonderful economy
That’s called a wrap around loan. If the bank gets knowledge without their approval they can call the loan due. The new owner also has to have faith that you will pay original loan.
Good point.
Most likely won't
Banks don't care where the money comes from....the bank still first in line. Bank don't wanna know what's going on😂😂😂😂
@@kimberlymartin459not in this case because of the interest rates. They can call due a 2.75% loan and lend that money out at a much higher interest rate.
Yeah, that's why rentals exist..
Not a tax expert or anything…but sounds like an audit waiting to happen
Why? What is being proposed is a sale using seller financing. Nothing unusual.
😂😂 mofo went from real estate to taxes and tried to sound smart in the process
Zero issues doing this from tax perspective. You simply claim the interest income that you make, over above the interest payment that you paid, and that becomes taxable income.
Why does everyone go to taxes when they have no clue what they’re talking about?
If your Buddy has a 4 million $ property.
He doesn't need your advice.
A Billionaire giving millionaire's advice on how to do better. You'd be a moron not to take the advice.
He's not a billionaire...@@TedCampbell204
@@TedCampbell204but guy makes no sense. Why would someone pay 6% interest to someone. Because any who can afford 3.2 million dollar house are not broke.
The bank owns him bro he owes the bank 4 million hes poor
Tell that to Mike Tyson, Floyd Mayweather, Michael Jackson.. 😂😂
A lot of mortgages contain a "due on sale clause," meaning when the bank finds out you are doing this, they call the note due within 30 days... food for thought.
You can get insurance on that
Yes that is true but most banks don't execute that as long as everything is paid up to date. Even if they do go that route all you have to do is call and show them how you are going to pay and what your plan is and then they in most cases let you continue. They just want to be sure that they are going to get their money back and as along as that happens you are good.
After two years, you can rent out your primary residence. And as long as you have landlord insurance, you’re good
It's a least to own, in a land trust.
If the mortgage can get paid, why would they want to call it due? Banks are in business of making money on their money, not managing real estate, it behooves them to just keep collecting payments, and calling it due rarely happens especially if it's BOA wells Fargo and the like...
Bases everything on best case scenarios.
Lol or fantasy. People who can spend 10k-20k a month on their house dont rent a house and throw their money away. They buy a house and pay their own mortgage. It's almost impossible to rent a 4 million dollar home. Ud be lucky to find an athlete who got traded and only needs a place for 15 months until his contract is over
He’s a clown
@@davidmarvy6788he’s not saying to rent it out. He’s saying to seller finance the property. Rich people seller finance to each other all the time. Why let the banks make money off of them when they can make money of each other
He said if a guy misses one payment put it back on the market. Heartless
😂😂😂😂😂
Yes if the guy stops you foreclosure and take that shit back. And keep all the money
it’s a 4 million dollar house. stop shedding tears for the rich
@@universalsorrowthat doesn’t mean there rich, if you haven’t noticed what he pretty much said was rent to own rich people don’t do that
It won't work in Canada. You have to renegotiate an interest rate on your mortgage every 3-5 years (no longer).
My poor dad played the lottery to get rich. My rich dad said winning the lottery won’t make you rich unless you change your poor man habits.
It’s called a subject to. The buyer is buying the house subject to the sellers existing mortgage
It’s not sub-to b/c he’s selling it to him at a higher interest rate.
He’s selling it on a wrap.
Its seller financing
Subject to
Seller finance
Contract for deed etc
Cardone used wrong vocabulary when he said rent it to them @ 6%
I have bought property sub to. This is not sub to.
Owner finance
Assuming that does not violate your mortgage terms.
If the buyer were to 'assume' the existing loan, then likely. But to sell a home based on seller financing is very common.
The reason it might be new to some, is that interest rates have declined for many years. As interest rate go up, this approach to buying and selling will become much more common.
@@timwinard7222 You can't owner finance a house that is mortgaged. The bank must be paid in full first. Period, end of story. No need for two paragraphs.
Rent to own a property that the bank owns “ technically “… bad idea…. If the bank finds out your doing this…. They’ll request the full balance to be paid or foreclose on you in Illinois
Rarely. As long as the payments are being made they generally don’t care. Especially not in this climate.
Who would tell the bank?
Bank would care more about the mortgage being paid monthly than taking the house or foreclosure.
Bro stfu this is why people stay poor because of that chicken shit mentality. You know how much crap the bank gets away with? Do you not remember 2008 and guess who got bailed out? Yeah, not us.
@@arieanna828 that’s what mommy bank said when I brought up the idea.
When he said 2.8%, I knew right away that guy is using a VA loan. Thank you for your service, Sir! You deserve it!
Not necessarily. In 2020 anyone could refinance at a rate as low as 2.375%.
Sounds good on paper. Unfortunately everyone is looking out for their own best interest and something will go sideways when it comes down to it. The only thing that might make this work would be the down payment, as the owner you should take that and view it as 1 year + worth of payments on the property. It’s not yours, it’s your cushion for WHEN something goes wrong
I think he is saying the current owner becomes the bank to the new owner. If the new owner can't pay, then he goes through foreclosure. Then the house comes back to the original owner and he can do it all over again. Not sure but I think that is what he is talking about.
Renting your house is not as easy as they make it sound.
Also, if someone can afford a 4 million dollar house why would they bother renting.
Love that Grant took what Pace shared and incorporated within his strategy to win.
Who is renting this unit at these numbers that are not owners themselves. Great ad Cardonel
And hopefully the renters dont destroy or beat the crap out of your house.
Right
They are "rent" to own. They have ownership incentive. If they make payments for 20 or 30 years (depending on the contract) they own it
He makes it sound like foreclosure is a simple thing without effort. He seems to try and oversimplyfy everything he talks about. Be cautious people.
I only heard this short clip, but why are you assuming a foreclosure is here occuring?
@@timwinard7222 it’s strictly forbidden in mortgage contracts. Aside from the fact buyers in that price range don’t pay high interest rates especially on 4 million dollar homes. This guy is just talking
That isnt foreclosure that is eviction. But either way he makes it sound easy. Unless we're talking seller financing which is honestly closer to what he says "give him 6% and keep the 3.2%" but that has a lot of problems too
@GK-gc9cv If you sell real estate to someone and hold the paper ( mortgage), it is foreclosure if you try to take possession of the property back from that party. States vary, but real estate laws are fairly similar in each state. If it's a binding sale contract by definition, it is foreclosure. Maybe I missed something in this guy's explanation. If so, I stand corrected.
@@timwinard7222 Ya, I watched over again and see that it is a tenant situation.
Next guy finances at 6%...never makes a payment...takes you 2 years to get him out and end up paying him $10k to leave.
You make him put down a large down payment, this protects you. If they are buying a home for 4 million, make them put down 350k as a down payment.
What do you do when they don't pay? Won't move? Can't evict them for years?
Perfect!!!!!!
Most banks will not let you do a land contract. If they find out, and if its done right, they will force a payoff. You will lose.
Did you notice when he said "don't sell it, rent it". The bank can not call your loan due when you rent your home.
I've done this, the banks don't care.
It's called a Land Contract!
It’s called a subject to deal.
It’s called you’re both right
Bought my 1st home this way.At the time couldn't get a bank loan due to no credit
And being young.The owner was a kind old man who have me a chance and carried the loan.I paid the loan off in a 8 years.I will always thank the old guy for giving me chance.
This guys like a California Condor.
don't sell it, Instead rip off the poor
@Juanpetter: you think a home that cost $4,000,000 and the word “poor” belong in the same sentence? 😂
If you're poor, you can't afford a 4 million dollar house. How are you ripping off the poor? Mortgage rates are in the 8% range. It's a good deal.
Love how everyone suddenly is an expert in the comments
No more am expert than cardone. Slick snake oil salesman
Newsflash: Line 203 and 503. Check your home's Hud sheet/form. Your answers are there.
"I said, don't sell it, dude, rent it!"
"It's almost like a rental."
Short everything that man has touched.
All fine and good until the buyer figures out he can sit in your property payment free for at least a year. There’s what works in theory, and then there’s real life.
So a guy who can pay a $ 4 million / 6 % loan 💵 why wouldn’t he be able to have the same loan as a mortgage with 2,8 % interest! Sounds good in paper but where is this guy paying 6 % 🤷🏻♂️?
Because the 2.8% interest rate no longer exists. Interest rates went up
Never put a large down payment on anything like this as you are only renting not buying, as the owner can't sell something they don't own the bank's still owns the house, remember folks if it's not on paper and registered at the deeds office it is not legit
Disagree.. iv ownd 4 homes...
Like anything else, the more u pay down, the less u owe. I put 30k down on this house to avoid the mortgage insurance.. nowadays when u close on a house they want u to pay mortgage insurance, well this is just another racket.. but if u put 1/3 down u can avoid having to have the mtg. Insurance (pmi) on ur loan, wich is anywhere from 60 to 120 bucks extra per month.. so in almost 5 years at current address with current loan, iv saved almost 6k and only put down 30k to save mtg. Insurance. But every body sees things different, that's my perspective and plight flipping home since 09, this is my 4th.
All that being said, this is something i learnd from my previous home where I did pay the darn p.m.i.. so when I rolled it for about 60, the first question I asked finance lady is how much do I have to put down on this house to not have to pay the mtg. Insurance.. with each purchase in life it seems there's someone to meet or something to learn.. I'm no expert, I just learned that on previous house.. God bless
I’ll be guarding that 2.8% like a hawk.
I’ll have to admit, this is by far the most realistic thing this man has ever said. With that being said, finding a person to be that trustworthy and honest is about the equivalent of winning the lottery. Is it feasible? Yes, but 99.99% unlikely to happen.
What changed? You said a few years ago that owning a house is a waste of time?
Who can rent a full million dollar house that also doesn't have enough money to buy their own?
Property taxes will cut into also
I feel like he has read a finance textbook for teenagers....and that's it.
in the UK you cannot re-let a property you have a mortgage on, banks won't accept it. You need to take a Buy to let mortgage out which will be closer to 6 %.
Sooooo very smart. We look for loan assumptions, and or renters to buy the currents debt. Make money a few diff ways. Great advice 💯
renting 4million house is very easy - que lined up immediately
It is crucial to ensure that he includes a quit claim clause in his agreement. This particular provision will greatly expedite the process of transferring the title in the event that the new owner fails to meet their obligations.
The upkeep on a $4,000,000 property is going to cost the "landlord" more than that 3%
Nice! Encouraging others to willfully violate the “due on sale” clause. That’s pretty awesome!😅
This guy speaks and it sounds like a step by step guide of “ways to get arrested for fraud unless your a billionaire”
The problem with this for young people is that when all the older people will only rent out properties then the younger people won’t have any properties to buy
Maybe the first thing this guy has ever said I may agree with
That actually sounded like a great idea.
Thanks for that idea guy. We need guys like you to get this economy roleing again. Increase the money velocity, let the good times roll and thrill your soul
Rent it out and when you get it back it’ll cost you millions to do do the repairs, genius
Who is “the next guy”? The hypothetical rent-paying tenant?
Your buddy was low-key asking for help out of debt 💀💀
Sounds like he took the game that pace morby dropped on him and giving that out 🔥💯
And it's for reasons like these that the real estate markets been falsely inflated. People should not be able to monopolize houses. One house one family
Problem with this is that the seller is now only making a 2.8% net return on the cash he otherwise can invest at a higher return elsewhere, plus paying capital gains on the sale.
Except you can't do this. Good luck at settlement when the title company finds Theres already a loan on the property.
Nice, but that’s a secondary Let and you’d need to re-mortgage on commercial terms. Which means you’d pay 6% and have to charge him 8-10 to insure the default risk. While the whole time you’re in the hole for $4m of debt, meaning you couldn’t buy another house because of your other liability!
saves him 2 points! spoken like a true mob boss lol
Pyramid schemes are legal with digital currency. Try that instead.
That’s not renting… that’s a WRAP with a Subject To. Great idea though.. that low rate is the true thing of value.
If you finance it to the next guy you sold your house 😂
Great financial advice as usual, just pass your losses onto the next guy and let him worry about it 😂
I am doing this deal with a great guy that sold me and my wife the house at 6% better than bank for us and if we don’t pay we basically have rented the house.
This is not how it works. It is a land contract, which is legal, but a person paying for a property is entitled to the principal. Thus, you don’t just get to keep everything of the buyer missed payments and defaults in the loan.
Until The next guy misses a payment and you go to foreclose on him and he gets p***** off and trashes the place on the way out the door😂😂😂😂😂😂
I have zero interest in being a landlord, but honestly the former sounds less of a hassle to me than getting rolled up in seller financing, as an individual anyways.
Until they destroy your house, don't pay the utilities and it costs $50,000 to put it back together.
And let’s not forget to mention any maintenance that needs to be performed
That is a crime, you can not give random people Personal loans. You are not licensed, you cannot become a loan shark
Seller financing is what he’s saying and it’s not a bad idea. It’s actually wise of you currently have a 2.8% fixed mortgage.
Total BS... when you rent a house you're not charging interest. This dude is a real piece of work
He means seller financing bro.
@@duran1590 he says to RENT IT OUT. You don't seller finance when you rent it out. Dumass
@@27dtrost yes but he obviously misspoke. You can’t charge interest when renting it out. He mentions “note” many teams which means he’s talking about seller finance which would consist of a “promissory note” secured by a lien on the property just like a mortgage.
I would love to see Robert Kiyosaki and Grant Cardone in an interview and see if they agree on money related topics
Meanwhile a basic S&P 500 etf made 30% interest last year - but go ahead with 3% interest locked up for 15 years
This is smart. It’s a wraparound mortgage. Helps your typical “penalty box buyer” like entrepreneurs who have a lot of cash but not in their W2. Normal play y’all just overthinking it cuz it’s grant
A couple pretty critical things you need to address 1.) Rental income is taxable 2.) Mortgage interest deduction is capped at $21k (2.8% on 750k mortgage cap). 3.) Repairs are your expense 4.) ...and probably the biggest one of all, you're holding on to a DEPRECIATING asset right now. Other than that, yeah.....great idea 😂
Not to mention the value of the home would most likely go up over time too.
But you definitely need to find the right renter
The same guy that says buying a house is a waste of money
What are the tax implications when he rents the house, moves to another house as his primary residence, and his rental property then becomes a business investment? He has to hold on to that house as a rental to avoid taxes, can deduct expenses for the rental, but the moment he sells it, the IRS is going to eat him up.
If you ever see a dude wearing a Richard Mille speaking into a podcast mic, there’s a 100% chance they’re a scammer
Making 3.2% on 4 mil sounds like a bad use of 4 mil. You can get a 4% + bond
Don't trust a guy with an eye lift
Or a guy that notices
From my understanding,the bank will call the loan due if they find out.
This guy is the biggest bag of hot air in history.
1) Don’t sell it, rent it 2) Self finance sell it 3) Looks like a tenant 4) Only pay taxes on the stuff you have to pay taxes on 5) If they default REPEAT. Lol. What a crock of crap this guy is selling.
Now all the realtors will come in saying it’s illegal 😂😂
The more Grant talks, I start to think he doesn’t have any friends and HAS to walk around with security.
Can you imagine the maintenance on a 4 mil house.
Perfect time to do wrap mortgages. People do these and subject-to's regularly now.
and that's exactly why I told all my friends never move into a " rent-to-own property" it's a complete ripoff and a scam.
Seller financing is not rent to own.
@@duran1590 =b******* it's the same f****** thing....... The same risks...
Owner financing, it's a great deal for both parties. You buy it at 6%, the banks are charging 8%.
Renting it out for 6% is charging $20k a month.
If you can afford a home that expensive, you wouldn't be stupid enough to take a deal like that anyway.
Odds are people who could afford the rent can afford to buy.
It’s call a wraparound loan and the original loan will trigger due on sale clause
Carpenter i knew said you pay your lumber bill with your credit card yhat had frequent flyer miles( we live at the beach in N.C. and are surfets). You have 30 days of chatges on your lumber ac. Bill comes out on the 25th. Have till the 10th to pay. You have 30 days on your cc. Then grt billed. He sounded soo sma TY! Then you go surfing. Yeah baby! He lost everything!