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All Forum Posts by: Kevin Nalley

Kevin Nalley has started 1 posts and replied 54 times.

Post: 1% Rule in Louisille Kentucky? How possible and where?

Kevin NalleyPosted
  • Investor
  • Louisville, KY
  • Posts 55
  • Votes 42
Originally posted by @Stephen Lewis:

Where do you find preforeclosure listings

 Here's a good place to start...

http://www.jeffcomm.org/

Post: How are LLC partnerships insuring properties

Kevin NalleyPosted
  • Investor
  • Louisville, KY
  • Posts 55
  • Votes 42

All mine are in LLC's and I'm here in Louisville. Google for Jason Roberts with Edward Frank, he is a member of our local KREIA group, he has been the cheapest I could find so far. I'm insuring Portland properties, but I have 11 of them and I spend less than $500 per month.

Post: 1% Rule in Louisille Kentucky? How possible and where?

Kevin NalleyPosted
  • Investor
  • Louisville, KY
  • Posts 55
  • Votes 42

2% deals are hard to find in Louisville right now, definitely a sellers market. All of mine are well above the 2% rule but they are all in Portland. With that said, Portland tenants can "chew you up and spit you out" if you're not very careful. Those great ROI numbers in poor areas can be misleading. If I had to do all over again, I would buy in areas that attract better quality tenants.

Personally, I would never go under 1% unless I was very confident the area is going up in value.   I wish I had bought those Germantown properties a few years back when they were going from $20k - $40k, and are now selling for over $100k :(

If you're trying to find stuff on the MLS right now, forget it. You need to be driving neighborhoods and sending out letters to pre-forclosure, probate, and absentee owners.

Marissa, you're welcome to copy the whole thing or in part... Keep in mind, I rent in lower income areas, not war zones, but a step above.

FRONT

Application Process

Thank you for considering Green Keys for your next home. We pride ourselves in providing clean safe homes at competitive rates. Our application process is simple and fair.

  • Your gross monthly income must be approximately 3 times the monthly rent of the home you are applying for.
  • A favorable credit history. We do expect perfect credit nor do we count medical bills, student loans, or paid collection debts. If you do not have good credit we can still work with you with a slightly higher deposit.
  • Be employed for 6 months or more at your current job and able to furnish acceptable proof of income for you last two months of employment.Paycheck stubs are acceptable, "cash" or "under the table" money does not count.
  • Good references from previous landlords. We use screening company to verify previous addresses, please list accurate information so we can speak to your previous landlord(s).
  • Criminal History - No felonies, or sex offenses, drug trafficking, violent crime, terrorism, burglary, theft, arson, vandalism.
  • Limit 2 occupants per bedroom.
  • Each adult living in the home must complete a separate application.
  • To make this application process as speedy as possible please mail / turn in the following with your application;
  • A photocopy of your ID
  • Proof of Income - SSI letter or last two paycheck stubs
  • $35 application fee per adult on the lease.
  • If you wish to place a hold on the property while we process your application, you may submit a $100 deposit. If your application is approved, your deposit will be used towards your first month's rent.If your application is denied, we will mail you a check for your deposit within 30 days.

If you are approved, you must be prepared to sign a lease within 3 days of acceptance or we will move on to the next applicant and you will lose your deposit.If your application is denied, we will return your deposit via check within 30 days. If you fall short of the above criteria we may able to work with you by doubling your deposit or paying rent up front.First month's rent and deposit must be paid by money order or certified bank check.You must have utilities in your name at time of move-in.

BACK (FAQ)

FAQ (Frequently Asked Questions)

Q. How much will it be to move in?
A. This depends on your rental history and/or credit history. If you have good references from your previous landlords and a reasonable credit history, the deposit is typically equal to one months rent. If you have no rental history and bad credit, it can be equal to two months rent. We do not expect perfect credit, and we do not count student loans or medical bills against you.

Q. I have X dollars on me and I need something today.
A. All applicants go through an application process, we do not rent TODAY. The application process usually takes 2-3 business days to complete.

Q. Will you break up the deposit?
A. No, deposit must be paid in full when we sign the lease.

Q. I have a felony charge for X that’s X years old… will you make an exception?
A. We have only made exceptions on very minor felony charges that have nothing to do with violence and drugs. Writing a bad check over $300 is a felony, we have made exceptions for minor things like this. We do a criminal background check on EVERYONE.

Q. Do you allow pets?
A. No pets in our apartments, but we do allow small pets under 25lbs in some of our houses. There is a $250 non-refundable pet fee and $20 extra per month, per pet.

Q. I had an eviction X number of years ago, can I rent from you?
A. If you only had ONE eviction over 5 years old and you have a good rental history since then, we we may be able to work with you. If you have more than one we will NOT work with you. If you are moving to us because you are being evicted, we will NOT work with you.

Q. Do you do credit checks?
A. Yes, but we don’t expect perfect credit, we expect a reasonable credit history. We do not count student loans and medical bills. We are mainly interested in your rental history.

Q. What if I don’t have a rental history because I live with my sister, mom, brother, or other friend / family member.
A. If you have no credit and no verifiable rental history, you’re deposit will typically be double the monthly rent, if approved.

IMPORTANT - Inaccurate information on your application, such as leaving off previous addresses, is reason for an immediate denial. Please be accurate and thorough.

I'm constantly trying to make it better, but this covers the most basic questions I get frequently.  Formatting is off a little since I copied and pasted here...

Post: Rental Property owned outright

Kevin NalleyPosted
  • Investor
  • Louisville, KY
  • Posts 55
  • Votes 42

Your state may be different, but they way I would do it in mine is establish an LLC and place that one rental property in the LLC's name. Open a bank account for that LLC and operate it like a business, don't mingle business funds with your personal funds. Should someone become injured on the property, they could only sue and get the LLC's assets, in this case just your one rental property. I'm not giving you any legal advice, just telling you the way I would do it... consult with an attorney.

100% agree with Greg...   I would also like to suggest writing down your rules and guidelines.  This was helpful for me in the beginning.  I made it clear on my website, along with an instruction sheet that accompanied every application, about what I would and would not accept.  This may help to take the emotion out of it, and you want to be fair by enforcing the same rules for everyone.  My rule on the above is every ADULT in the household must fill out an application.

Post: PayNearMe, Family Dollar, and Ace Cash Express

Kevin NalleyPosted
  • Investor
  • Louisville, KY
  • Posts 55
  • Votes 42

@Bob B.

That may work if I only had one bank account per property, otherwise it would block all tenants from making a deposit.  I've seen where a few people have mentioned they have multiple accounts, but to me, going into the bank and opening 20+ accounts, then keeping up with all those accounts, sounds like more of a headache than it's worth.   I was hoping to find a direct replacement for PayNearMe, but sounds like they are a "one of a kind" service right now.  

Post: PayNearMe, Family Dollar, and Ace Cash Express

Kevin NalleyPosted
  • Investor
  • Louisville, KY
  • Posts 55
  • Votes 42

@Tom S.

I've consulted with some local investors and my real estate attorney.  In our area, we have judges that will force you to restart an eviction process if a tenant places a mere $5 into your bank account after you have started to remove them.   Unfortunately, I may have to go back to money orders and mail.

@Rick S. 

Requiring tenants to get a prepaid card that charges fees, then sign up to a rent payment service to pay rent is too much for a cash paying tenant.  Some have become confused over a less complicated procedure... I would hate walking a tenant through that process every time I lease a place.  I'm sure your service is great for a tenant responsible enough to maintain a bank account.

Post: PayNearMe, Family Dollar, and Ace Cash Express

Kevin NalleyPosted
  • Investor
  • Louisville, KY
  • Posts 55
  • Votes 42

@Linval T.

I'm happy with Cozy.co for my tenants with checking accounts.  The area I rent in has many people without bank accounts, I need a place for them to pay rent with cash.  I looked at erentpayment, and at a quick glance, it does not appear they provide that service.

Post: PayNearMe, Family Dollar, and Ace Cash Express

Kevin NalleyPosted
  • Investor
  • Louisville, KY
  • Posts 55
  • Votes 42

I just contacted Ace Cash Express corporate office, they said ACE is closing down all their stores in several states, Kentucky, Washington, Idaho, Nebraska, and a few others.   PayNearMe support must not be aware of this, when I informed them the store closest to my rentals was closing, they gave another store in my city.