2.99% Seller Financing On Investment Properties!
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- Опубликовано: 15 авг 2023
- Subscribe here: / @renttoretirement
Calling all investors! Zach Lemaster is thrilled to introduce an exclusive game-changer: seller financing with a jaw-dropping 2.99% interest rate! Imagine brand-new Alabama homes, yours to own on this incredible deal.
Buy up to 5 New Construction Rentals in AL with a 2.99% Seller Financed Property!
Only available on a set # of homes! Once these are gone, they are gone!
Here are the key benefits:
-Exponentially increase monthly cash flow
-Pay way less interest than a conventional loan
-Earn much higher ROI typically 15% - 20%
-Less strict qualification criteria than working with a bank
-Close in as little as 10 business days
-Enjoy high cash flow, appreciation, and tax benefits on a 2.99% interest rate that you can either extend, sell or refinance once the initial loan term is up.
If you are interested, please follow these steps:
1) Send an email to admin@renttoretirement.com if you would like more information. Our team will send you the next steps to follow.
2) Fill out the application at the link we will send you.
3) Email your RTR rep (or admin@renttoretirement.com) once you have pre-approval.
4) Reserve your properties to take advantage of all-time low-seller financing!
If you are interested in real estate investing, please reach out to us at
info@renttoretirement.com or call 800-311-6781
Follow us on social media or take a look at our website!
renttoretirement.com
/ renttoretirement
/ renttoretirementinvest
Don't miss out on rewriting your investment journey. Embrace the future with Zach Lemaster's groundbreaking seller financing. The clock is ticking - secure your financial success today! Subscribe now and turn on notifications so you don't miss any of our future videos where we share more strategies, case studies, and updates on our journey towards building wealth through smart real estate investments.
This sounds great until you have an empty house and not paying down principal. I can get over 5% yield on T- bonds right now with virtually no risk which explains mortgage rates being high.
Interesting concept! I look forward to exploring this option more
Very helpful video Zach! Your knowledge and expertise made the process smooth and easy to understand for us.
This sounds awesome!
Big fan of low interest rates. I like the idea of delaying getting a 30 year fixed so that I can wait to refinance until interest rates drop.
Yes, please post the link! 🙂
1) Please send an email to admin@renttoretirement.com that you would like more information. Our team will send you the next steps to follow including the link to apply.
After interest rates went up last year there has been a big need for creative financing options. This is a great option to get an amazing return while rates are still higher than historical averages.
Say you save up all the cash flow over the 2 years from the seller financing option. Can you then take all the saved cash flow and make a big chunk payment towards the principal at time of refinancing or just prior? Would be good to get some of the principle balance down at the time of refinance or extension
Where in AL is the location and who is the builder ? Are there CMAs for that location?
Hello Ashy. Homes are built throughout the entire state from just South of Huntsville some near the coast. Please reach out to admin@renttoretirement.com to get all the details for numbers, process, builder info, inventory list of specific location, etc. This is on a select number of inventory, many of which are already reserved at this point.
Because at 62 years old I could borrow from my 401k penalty (not tax and Interest) free for down payment
yes, that is fine to do if you would like to use that for the down payment.
Who will be responsible for keeping tenant occupancy, who will manage the property and I didn't see property management expenses in your comp calculation?
As with all our turnkey inventory property management is already established for you and already in place to manage the property. Yes, management expense is included in the pro forma, so it is factored in. Mngt on these is 8% of rents for RTR investors. Standard mngt rates in this area would be 10%. Hope this helps.
What’s the downside? Vacancy rate? Do you help to identify tenants?
These homes are already built and many of them are already leased reducing your vacancy potential. Yes, these are turnkey with management and all other teams in place.
My greatest question is what happens after 2 years. I see that it is extendable for 2 more years. How is the rate determined? Is there another origination fee or does this flow into year 3 like a 2/2 ARM with a balloon at end of year 4? And is year 3 and 4 still interest only?
UPDATE -- Can I do a 1031 exchange into these properties? Update -- Since these must be put in an Alabama LLC, 1031x is nearly impossible. But LLC protection at 2.99%!!!! That's amazing! Still want to know what the extended loan looks like in year 3-4 when the value catches up (you get your principal back.) It's like a 3 year BRR without the rehab. Pretty slick.
Hello, thank you for the interest! It would be good to note that there is a limited amount of inventory that this is available on. We advise that you schedule a time with our team to answer all your questions in a timely manner. You can do this by emailing admin@renttoretirement.com. Here are some rapid fire answers for you: You can 1031 within a different LLC (we have a QI you can speak to if needed). This was explained in the video, but after the initial term is up with this IO loan (just like when all loan terms are up) you can do one of 3 things: 1) sell the property, 2) refinance into a long term loan (which can be done through the seller and kept in the LLC) or 3) extend the IO loan, but the interest rate will adjust based on prime. We all expect rates to be lower, but if they are not for whatever reason, you could easily use part of your excess cash flow you earned over the past 2 years to buy the rate down for a long term hold. Plus you would have had 2 years of tax benefits, appreciation, depreciation, etc. in addition to significant cash flow well beyond what you would have with current loan rates AND paid way less interest during those two years likely in the $15,000 range plus since conventional loans are front loaded with mainly interest. That money does much better in your bank as cash flow. Hope this helps. Please reach out to our team to learn more by emailing admin@renttoretirement.com
It would be nice to know the price range, so that we can figure out what the 25% will be.
please email admin@renttoretirement.com to get more information on this process along with current inventory. To answer your question though, price points are usually between $270K to $320K, so anywhere from $65K to $80K would be a typical 25% down payment needed based on the exact property price. The example Zach used in this video is an actual example of one property showing realistic numbers of what to expect.
can we use LLC to buy this property?
yes, you are required to close in an Alabama LLC, which will be set up for you at closing so you do not need to worry about establishing another LLC.
What is the duration on the interest only loan at 2.99%?
initial term is 2 years, can be extended at 2 years but rate will adjust
Can you purchase in a Self Directed IRA?
yes, but does need to be closed in an AL LLC.
Does this seller finance shows up in credit report ?
these close in an LLC so no
Where’s the link?
1) Please send an email to admin@renttoretirement.com that you would like more information. Our team will send you the next steps to follow including the link to apply.
Is remaining 75% seller financed or while 100% of the house?
Please watch the full video to see a clear breakdown of all numbers. Buyer needs 25% down, and seller is financing the remaining 75% of the home at a fixed 2.99% interest only loan for 2 years.
Yes, I asked question too early in the video. I will watch full length today. But thanks.
@@ruchitpatel5956 thank you. Please let us know if you have any other questions after watching the video. Feel free to learn more by reaching out to Admin@rentoretirement.com.
How much would cash flow change if you took a 67,000 loan for down payment at current interest rates? Or would that be cutting off your nose to spite your face? 😮
Are you asking if you are specifically financing the down payment? Really depends on the terms for that loan, but we have seen many people use their HELOC to fund the downpayment for these (meaning they are financing 100% of this purchase) and they still will cash flow likely ~$300 to $400 a month since the seller finance portion for the majority of the purchase is such a low rate at 2.99%. Great strategy to consider if you don't have the full liquid capital to fund the down payment.
Who is predicting rates to drop in a couple months?
This is irrelevant if rates drop, stay the same, or increase in the future. This is a 2.99% fixed rate for two years. The fed have already come out publicly to state they have decreased inflation close to their target and anticipate rates start to lower into next year.
@@RentToRetirement if it’s irrelevant why bring it up in your video? I think this is a great opportunity but be-careful to make statements you can’t back up. So again can you show where you got the statement rates will drop in a few months?
@@scottg247 Yup, here you go (a few articles below). Not sure what else you would like to see. It should not be news to anyone that the fed expects to lower rates starting over the next few months likely, but certainly into next year. Obviously no one knows for sure. Again, regardless if rates go up, stay the same or go down, this strategy with a fixed 2.99% rate for two years will allow you to cash flow tremendously to earn a high, double digit return that you can either buy your rate down on a long term loan, or use it to get into another investment. This also gives 2 years for a brand new build to increase rents & appreciate allowing you to be in a better position for a long term loan in two years AND experience 2 years of tax benefits/depreciation during that time. Hope this makes sense.
--
"Fed officials do expect to cut interest rates next year, but only slightly"
-NY Times
www.nytimes.com/2023/08/07/business/economy/interest-rates-lower-when.html#:~:text=Fed%20officials%20do%20expect%20to,the%20years%20before%20the%20pandemic.
--
"The Fed estimates it will reduce its key rate to 4.6% by the end of next year, though it's not clear when it thinks it might start cutting."
-USA Today
www.usatoday.com/story/money/2023/06/16/when-will-the-fed-cut-interest-rates-2023/70330336007/
--
"Economists have long expected the Fed would likely stop raising interest rates at some point in 2023, but “where” rates peak - a level known as the “terminal” rate - is actually more important than “when.”
-Sarah Foster
Principal U.S. Economy Reporter, Personal Finance
--
"When Will Interest Rates Go Down?
"First, we expect the Fed to pause its rate hikes after having conducted its final hike in July 2023. Then, starting around the beginning of 2024 (we expect in the first meeting in February 2024), we expect the Fed to begin cutting the fed-funds rate. Interest-rate forecast. We project a year-end 2023 fed-funds rate of 5.25%, falling below 2.00% by mid-2025. That will help drive the 10-year Treasury yield down to 2.5% in 2025 from an average of 3.5% in 2023. We expect the 30-year mortgage rate to fall to 4.5% in 2025 from an average of 6.5% in 2023."
-www.morningstar.com/markets/when-will-fed-start-cutting-interest-rates
"Fannie Mae’s latest forecast says the 30-year fixed-rate mortgage rate will dip to 6.6% by year’s end, while the Mortgage Bankers Association has its sights on a 6.2% average rate. Either way, it’d be an improvement for those looking to get in on the market-if they can find a property."
www.biggerpockets.com/blog/mortgage-rates-reach-20-year-high?Iterable&Newsletter%20%7C%2008/27/23