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Home » Resources » Ask Ron - Q&A sessions with Ron » 2020-02-14 Ask Ron

2020-02-14 Ask Ron

In this edition of “Ask Ron,” he answers students’ questions regarding Commercial Property, Roth IRA, Owner Financing, and Lease Option Deposits! This week is a little nontraditional – but Ron still did his due diligence to get the job done, below are his written answers!

Heather Deweber, Washington

I’m having troubles figuring out where to start first, I’m sure you’ve answered this a dozen times. What should I do, should I start an ugly houses or in the pretty house business?

You should start by learning the basics of both sides of the business because if you don’t, I doubt you will get far. The best place is my QuickStart school, but I have a home study course called terms and another one on wholesaling. You can get my wholesaling course for a dollar at Ron’s dollar deal.com.


Merle Miller, Kansas City

How much do you know about the market here in KC? My question is, Is it more Important to get all this information down pat, so I know exactly what I am doing or is it more Important to JUST DO IT?       

The city where you live makes very little difference as to the operation of this business. There are houses in every single state with people who need to get out and others who need to get in and always will be. The basics are the same everywhere and the few laws that are different does not change the structure and operation of the business. We travel the entire country training and do deals everywhere we go.


Cecil Russell, Texas

Commercial Property Scenario: The property is 19,200 Sq. ft. with 13,756 Sq. ft. currently occupied by a tenant paying $13,333.33/month/$160,000/Annual with 10% rent increases every 5 years. The remainder is currently unoccupied. This property includes 13,756 SF plus 5,500 SF of shell retail space, and plus a vacant land, 12,944 SF (which was formerly a bank/office building sitting on about 9,500 SF) Seller alleges a 5.7% cap and asking $2,610,000. I’m sure there’s a lot more to this than I am qualified at this time to determine. 

All you really need to know is a 5.7 Is top retail price and this property should be of no interest to you with your knowledge. Work on houses where you can make some money.


Joe and Jenn Delle Fave, New York

The company I worked for was sold. I converted my 401k into an IRA with Quest, so far 100k. I’m also going to transfer 5k into a Roth IRA and pay the taxes now. I’m taking your advice and opening up a Roth IRA for my wife with cash. And two Coverdell accounts, one for each of our children. My question to you is, you mentioned having your IRA own the LLC. Would each one of our IRA’s and each Coverdell have to have its own LLC? Total of 5?        

No, they don’t. They can on one LLC, but distributions have to be made according to percent of ownership. Get some help from Quest on this before you implement.


Rolondo Postigo, California

I have 6 properties I purchased several years ago via subject to. I sold them all via owner financing (i.e. wraparound mortgage). I make about $2,500 positive cash flow. I have about $200k in equity. How do I free up my equity? Let’s assume that these families cannot refinance at this point and I do not want to sell the wraparound mortgages at a discount. Is there a creative way to do this?        

No, when you sold these on a wrap you don’t on them anymore so you can’t go to the bank and borrow money against the properties. You could sell the notes, but I doubt you would like the price because they would go at a big discount if not constructed properly. The next best thing to do is work with your buyers to get them to cash you out but then the properties will be gone. If I were you, I would cash out now anyway while the market is so hot. You can always buy more properties without cash. You can’t always get cash.


Damion Gerald, Maryland

In your short form lease option agreement with the seller, I do not see a line or paragraph that addresses the option deposit payment to the seller. When I want and/or need to pay an option deposit to the seller, how do I incorporate the payment amount into your short form lease option agreement?    

There’s no space for one because I never get one. If you do you can write it in the options section where the price is named. Make sure it’s shown as an option deposit not a security deposit. That way it will apply toward the purchase


Thanks to Heather Deweber, Merle Miller, Cecil Russell, Joe and Jenn Delle Fave, Rolondo Postigo, and Damion Gerald. Please don’t forget to “Ask Ron” any questions on the forum or via Messenger. Stay tuned for next week’s video!

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2 Responses to 2020-02-14 Ask Ron

  1. Merle Miller says:

    Thank-you for taking time to answer my question! I’ll be seeing you in Dallas!!

  2. Joseph M'Mwirichia says:

    Great info, especially on capturing locked equity!

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