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Investing In Real Estate Podcast

If you’ve got a decent chunk of change, should you apply it toward high-interest credit card debt? Or is it better to use that money to start investing? That’s the first question I’m answering on today’s Q&A episode!

On this episode of Investing in Real Estate, I’m answering three of your questions on paying off debt, borrowing against paid-off rentals, and how to handle high property taxes on a rental property. To hear my answers to your questions, tune into this episode!

On this episode you’ll learn:

  • How to decide if you should pay off debt or invest.
  • The best methods for leveraging paid-off rental properties.
  • How to mitigate high property taxes.

How to Decide If You Should Pay Off Debt or Invest

Paying off debt and investing are both great financial goals, and I don’t think this decision has to be either/or. If you’re in this position, I wouldn’t necessarily suggest throwing all of your cash at either option. Perhaps look at transferring your high-interest debt to zero percent interest credit cards. I would suggest using some of your cash as a down payment on a rental property. This allows you to increase your net worth and bring in some cash flow. In other words, utilize other people’s money and work toward both of your goals simultaneously.

The Best Methods for Leveraging Paid-Off Rental Properties

Looking to borrow against the equity in your rental properties? Options include portfolio lenders, private lenders, hard money lenders, and more. I can recommend Direct Lending Partners and Dan Kraus at Churchill Mortgage.

Depending on the price and ROI of your properties, you also may want to consider a 1031 exchange. Check out our blog post and video on the 1031 process.

How to Mitigate High Property Taxes

For me personally, high property taxes are not a deal breaker. I care more about the overall ROI—so if other expenses are low, I can take the hit of higher property taxes. See my video and blog post on this topic for further explanation.

I’d also recommend working with a great CPA to ensure you’re tax planning year-round, and taking advantage of the numerous tax benefits available to real estate investors. We recommend the team at Wealthability.

Ask Me a Question at morrisinvest.com/clayton

Episode Resources
Book a Call with Our Team
morrisinvest.com/Clayton
morrisinvest.com/funding
Direct Lending Partners 
Dan Kraus – Churchill Mortgage 
The Ultimate Guide to 1031 Exchanges
5 Powerful Benefits of a 1031 Exchange
What Every Investor Needs to Know About Property Taxes 
How Much Profit Should You Make on a Rental Property
morrisinvest.com/lower-taxes
Download the Freedom Cheat Sheet
Download the free Financial Empowerment Bootcamp
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel
Like Morris Invest on Facebook

DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to​ use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

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Posted on

January 25, 2021

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