All Forum Posts by: Kevin Nalley

Good job, I've worked with River City Bank on several deals.  They are definitely one of the most investor friendly banks in town.    Watch those credit cards and unsecured lines of credit, I did this on several rehabs and it will wreck your credit score until those are paid off.

Lots of hard money lenders mentioned on here.  For our area I've been using River City Bank.  They are very investor friendly and typically require 20% down on any deals.   I have flipped, but I'm primarily a buy and hold investor.   If you're a flipper, you'll just have to pay those Capital Gains taxes, though you may want to look into a 1031 exchange... I'm not real familiar with it, but from my understanding you can skip paying taxes on a sell if you're using that money to purchase another property... perhaps someone more familiar can chime in on that.  

 Yes, if the deal is right.  The problem I've seen with local wholesalers is they either are paying too much or they are asking too much.  Stay away from West End properties if you're trying to wholesale...  there just isn't enough money to be made and they tend to be hard to sell.    

It's been my experience when dealing with homes under $100k, I want to work with a 50% ARV, $150k - $200k (ish) a 70% ARV works fine. Let me give you an example of one I bought... I purchased a little 2/1 in Lynnview for $32k, I first thought I could pay around $45k but after giving it some careful thought, Eric and I thought $32k would be about right. The home needed paint inside and out, AC compressor, kitchen was missing, hardwood refinished, and they sold the metal garage so I had to come up with a solution for the big elevated concrete pad in the back yard (house was on the news as a chop shop...LOL).

I was very thrifty on the rehab and had a total of $54k into the house, not including my full time maintenance guys salary, factoring that put me around $60k.   I sold the property for $75k, paid about $5k in real estate commissions and closing costs.  So, in the end, I made about $10k off that deal, which sounds like a good amount, but all it would have taken was one little thing to go wrong (new furnace, plumbing problems, etc) and I would have been breaking even, or losing.    Oh, and this stuff you see on these flipping shows where it looks like they turn a house over in a week (lol) is total BS, It's more like 4 - 5 months.   

The local KREIA group is a good place to start.  I have personally used Eric Scroggin (Remax) and Dan Wolf (Semonin)... both are investors as well as agents so they know what investors are looking for.

I agree 100% Mike... I never knock on doors for rent.  They either use Cozy.co or I give them bank deposit tickets.  If they don't pay, 7-day letter, then attorney starts eviction on day 15.   Also, I don't rent to convicted felons or people with a criminal history of violence.

Typically about a week.   I don't have these problems very often now... I've learned to screen them much better.  If I have time this week, I may write a post on screening with some online tools we have in Louisville.  

I think I paid him about $200... I hate doing that, because in my mind I'm paying someone to leave that owes me money...  It does normally work, I get rid of someone that would have most likely cost me much more in damages and lost rent vs just paying them to leave. 

@Wes Singleton, I did have one situation that was kinda hairy...   I broke my own rule and rented to a convicted felon, the guy had spent 15 years in prison for manslaughter but no other issues since he had been out.  He paid rent a couple months, then stopped.  I did a little cash for keys and met the guy at the apartment he was occupying.   He had a sharpened screw driver in his hand...  I stayed calm, watched his hands, made him comfy and we did the cash for keys exchange and I was done.     I'm no badass, but I have trained martial arts all my life, spent 10 years as a police officer, and I was carrying my .44 concealed... If he would have come at me, it would have been a bad day for me, but much worse for him :)   I do recommend meeting potentially hostile tenants in a public place, and take someone with you.   I broke my own rule by renting to that guy, and I've never done it again... I don't rent to convicted felons for exactly the reason I described above.... just not worth it.

I'm good here, wasn't me, thanks for asking Greg :)    I don't get confrontational with tenants.... the news reported the landlord today was supposedly there about a rent dispute.    If my tenants don't pay, they get a 7-day letter, by the 15th if they haven't paid, I send their file over to Michelle Rawn to start the eviction process.   Also, I'm sure many landlords have some tenants they like to get cash from... :)   I set my tenants up on Cozy.co, or I print off some bank deposit tickets so they can take their rent straight to the bank...

@James Beam,   I personally think Shively, Beechmont, Germantown, Hillview, Okolona, are all good rental areas.  I was talking with Jeanna Ashley (VP of River City Bank) a couple weeks ago and we discussed what she thought was a good price range for rental homes, she confirmed what I already knew... under $100k (Single Family Homes) tends to be the sweet spot in our area.   As many have mentioned, the numbers have to work, and like Clay, I tend to use rent-o-meter as my guide if it's an area I'm not real familiar with.