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All Forum Posts by: Jeremy England

Jeremy England has started 21 posts and replied 275 times.

Post: Rental ad response and holding rental

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142
Originally posted by @Tyler Gibson:
Originally posted by @Jeremy England:
Originally posted by @Tyler Gibson:

@Jeremy England I would not hold any property especially if you have multiple qualified applicants. It sounds like you could even rent your unit at a higher price point if the demand is that high. you mentioned that you had chosen a tenant but they couldn't come up with a security deposit. Are you having applicants do background and credit checks? I would think that a person that meets a high standard would not have a problem coming up with security deposits. If I had a tenant asking if I could hold the property I would tell then no I can't but you can sign a lease starting now and move in when you can. It is a business money talks or I walk. 

 Yes. Their credit check revealed a low credit score which I will accept with double the security deposit. They couldn’t come up with 3k to move in.  

 I would go the other way and just not accept the lower credit score. I know it sounds like a good idea to take them with a double deposit but what happens is they can't get that much money together and so you go back to the drawing board. Why not just deny them in the first place and save some time? I get it that you might feel some people deserve a chance, I just would not want to waste the time. That being said it is your business run it how you want. 

 Moot point now. Just approved an applicant today and received his deposit. Thanks for the input. And youre right. I probably could have got 11 or 1200 out of this place wirh the response i had. I looked at what was renting near by and went 50 bucks higher. Live and learn. Ill be raising the rent after first lease

And buying more in the neighborhood.  After refi. Ill have about 8k of my own money in the place.  Not bad for one month purchase, rehab and rent.  1k/mo and a 25k equity position

Post: Rental ad response and holding rental

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142
Originally posted by @Thomas S.:

You do not hold a property in a hot market. If you relist raise the rents ($1200) to eliminate these applicants and narrow your list to higher quality applicants. Large number of applicants indicates your rent is too low. Do not rent to anyone from out of town unless they do a personal inspection of the property first. I never rent to anyone that is not available for a personal interview.

Not beng able to pay required deposits means your applicants are not qualified and your screening standards are far too low. Raise your standards.

 Yes the rent may be too low. But it is one of the higher in the neighborhood and it only has 1 bath.  

Not sure how much higher my standards could be. No evictions, no judgements, good rental history, no felonies, 

Credit score is only think I’m fexible on. Below 600 req twice the security deposit. 

Post: Rental ad response and holding rental

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142
Originally posted by @Tyler Gibson:

@Jeremy England I would not hold any property especially if you have multiple qualified applicants. It sounds like you could even rent your unit at a higher price point if the demand is that high. you mentioned that you had chosen a tenant but they couldn't come up with a security deposit. Are you having applicants do background and credit checks? I would think that a person that meets a high standard would not have a problem coming up with security deposits. If I had a tenant asking if I could hold the property I would tell then no I can't but you can sign a lease starting now and move in when you can. It is a business money talks or I walk. 

 Yes. Their credit check revealed a low credit score which I will accept with double the security deposit. They couldn’t come up with 3k to move in.  

Post: Rental ad response and holding rental

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142

so I just finished a rehab on a new acquisition and posted my ad to Zillow for 1000/mo which I thought was ambitious.  I got blown up with tenant requests and had an agreement in a day.  However they were not able to come up with the required security deposit so I reposted it to Zillow and again am getting a lot of response

Now I’m faced with tenants asking me to hold the property for them. Good tenants coming from out of town.  Military town.  I’ve been telling them that I can’t hold it due to demand and my need to place a tenant now.  Its only been one day since I reposted it.  Got two coming to look today. One for a second time but they say they can’t occupy til October. How does the community deal with the holding issue?

Post: Shift to brrr strategy

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142

for anyone who's been following this, so I found a lender who will cash out finance the property.  Its a commercial loan.  This will increase the monthly payment however which decreases the cashflow of the loan.  The terms are 5 year balloon amoritized at 20 years at 6pct with 1/2 pct origination.  That would put my payment at 537.  add in insurance and taxes and there would be about 250 left if I got 80pct out.  If I got 75pct out there would be about 300 left after piti.  

Question for anyone who can answer. They say I can finance this property in my LLC but witha personal guarantee. This sounds good, however I'm thinking of 3 or 5 years from now. If it's in my LLC's name, then a mortgage on the property is out of the question I think right? Like a traditional refinance into a 30 year at a lower rate?

I'd like to hear anyone's thoughts on it.  Thanks

Post: Trouble Refinancing as an LLC

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142

You need to talk witha  commercial lender and you will need to give a personal guarantee.  The loans will be in your business name, but you will be personally responsible for them in case of default.  I'm going through this process right now

Post: Newbie from Pensacola, FL.

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142

Welcome Steve, I'm local to the market and can refer you to different resources should you need one.  Let me know

Post: Shift to brrr strategy

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142

Speaking of loans thought I’d let everyone know that the bank that I had in mind for my cash out refi is no longer offering loans without seasoning periods to new customers. So I’m back to the drawing board with trying to find a bank to refinance with I’ll let everyone know when I figure out.

I may have to just pay off his personal loan with my own money and wait for the seasoning. It really throws a kink in the whole brrrr concept.  If I have to wait six months between every purchase and refinance the road passive wealth is a long one

Post: Shift to brrr strategy

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142
Originally posted by @Kirk Simpson:
@Jeremy England This is a very interesting financing strategy, thanks for posting. Do you mind explaining how difficult the process was obtaining the loan? I’m currently repairing my credit and studying up on different methods, so I don’t think this would be an option for me right now but I’d love to find out more to keep it as a potential option int he future.

 Easiest loan I’ve ever applied for. It was simple . they check your credit, your bank statements , youre funded

If only mortgage loans for this easy

Post: How does this sound for Private Money?

Jeremy EnglandPosted
  • Contractor
  • Pensacola, FL
  • Posts 278
  • Votes 142

is this your first deal? If so you’ll probably have to self fund it to prove to the people you are soliciting that you know what your doing

Borrow from the 401k imo.  It’s cheaper anyway