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5 STRONG REASONS to consider "Section 8" | Episode 144
FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's
5 STRONG REASONS to consider "Section 8" | Episode 144
FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's
ratings:
Length:
8 minutes
Released:
Oct 7, 2015
Format:
Podcast episode
Description
What do you think when you hear the term “SECTION 8”? For most of us, thoughts of this government assistance program that provides housing to low income people sends chills down our spines. And that may be exactly the right response… but is it really? Today we look at the Section 8 program from an objective point of view and learn 5 solid reasons rental property owners shouldn’t write off this program. I’m Bryan Ellis. This is Episode 144.----Hello, SDI Nation! Welcome to the podcast of record for savvy self-directed investors like you!I had the pleasure of spending yesterday with a brand new client named Mike from Delaware. Mike is a brand new listener to this show, having discovered us just last week. But he was bright enough to see the opportunity in the cash flow properties I’ve mentioned to you during the past week, and he came for a visit to make a purchase. Mike, it was great to meet you, and I look forward to serving you well!By the way, folks, for those of you who may be interested… all 19 of the properties I mentioned in last week’s podcast are now sold. Every single one of them. Thank you to those of you who responded so immediately… you folks are amazing and I’m so grateful to you.The rest of you… don’t despair. I’ll soon – very, very soon – have more great cash flow deals to share with you. But the lesson here is this: Don’t delay! They never last long because one thing I can tell you for certain: If you hear ME talking about a deal, you can bet on it that that deal is very, very attractive. Thus, they go quickly. So listen in for announcements about more in the future, or you can even get on my notification list right now by texting the word TOPPICKS to 33444.So, Section 8. Section 8 is a government assistance program for low-income earners. The gist of the program is that the federal government pays some or all a low-income person’s rent for them, directly to the landlord. In exchange, the tenant is required to respect the property.Now, my friends, I’ve got to be honest with you: I have a bias against giving things away for free. People who expect things for free are generally people who expect EVERYTHING for free… the very essence of the entitlement mentality… and I can’t begin to express how thoroughly I despise people who believe their entitled to things they’ve not earned.And I still feel that way. No question about it.That’s why this Section 8 thing has historically been a huge conflict for me. On the one hand, as a landlord, you get something very, very valuable: You essentially get a guarantee from the federal government that you will receive the rent you’re due on time, every time, each month. And typically, the rents offered through Section 8 are very competitive, if not slightly above the market rate. But on the other hand, my assumption has always been that if you give someone the right to live in your house for free, then what you’re asking for is serious property damage and endless property management headaches.And you know, that definitely can happen. It’s not difficult to find horror stories about Section 8 tenants who have damaged properties in a terrible way. There’s no doubt about that.But my friends, there’s more to the story, which I only recently learned.A colleague of mine is a Section 8 guru of sorts. He’s managed over 1,000 Section 8 properties. He’s the kind of guy who knows the in’s and out’s of the business very well. I was discussing my biases with him about the Section 8 program, and he looked at me a bit incredulously. He actually said “I thought you were smarter than that”. Hehehehehe! And I’ll admit, he gave me a bit of a schooling.He specified 5 big reasons he likes Section 8 properties… 5 big advantages that the section 8 property has over the non-section 8 property.First: Section 8 pays rental rates that are competitive, and frequently a bit above market rates. Your gross income under Section 8 quite certainly won’t be less, and may be more
Released:
Oct 7, 2015
Format:
Podcast episode
Titles in the series (100)
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