Call 10: Exit Strategy

Call Notes

I want to roll over a property into an LLC after purchase?: Rolling over a property, “changes” the ownership and may trigger the due-on-sale clause. A due-on-sale clause gives the lender the right, but not the obligation, to call the full balance of the loan or promissory note due upon sale or transfer of ownership of the property used to secure the note. This rarely happens (1-5%), banks have better stuff to do, especially if you’re making payments on time, but just something to keep in mind.

Is it worth it to get real estate professional status?: Not worth it if you’re not making over $500k/year, under that you’re not paying much taxes. Don’t buy 10+ rentals to gain this status, a short-term rental is easier. 

Is infinity banking worth it?:

Just like any investment there’s 3 questions to ask yourself in this order:

1. Is this your highest and best use?
   1. If you spent more time at your day job would you make more money?
      1. Are you a W2 worker that only has to put in 40 hours and leave?
      2. Or are you a Dentist and can spend more time focusing on getting more clients to make more money?
2. Is your Spouse/Family okay with it?
   1. Should you really be spending all your time and energy on making money or spending time with your family and loved ones?
3. Do you enjoy it?
   1. You should definitely do it if all of the above criteria are met!