All Forum Posts by: Jarrod Covey
Jarrod Covey has started 24 posts and replied 225 times.
Post: Private Money options for residential development project
- Lender
- Austin, TX
- Posts 241
- Votes 136
Hi Michelle - I've sent you a PM!
Post: Direct Booking Website: How Do You Protect Yourself?
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Gulliver R.:
Thank you all! I’ve already reached out to boosty to get my direct booking site going.
@Jarrod Covey I’m using foremost insurance right night. It’s not expensive. How much are you spending on your insurance and what coverage are you getting ?
Total policy with Tower Hill was $1340
Post: Direct Booking Website: How Do You Protect Yourself?
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Gulliver R.:
Hi All,
I have an STR that's on Airbnb and VRBO right now. But I'd like to build a directing booking site and put my STR on that as well. I like that you don't have to worry about getting a bad review on Airbnb or VRBO when getting a booking from your direct booking site. But what about when bad things happen? How do you protect yourself? For example: when guests break stuff, when they break the rules, when they have a party in your STR, etc.? What I like about Airbnb is that if the guest breaks the rules and you can prove it, Airbnb will have your back and allow you to kick the guest out with drawbacks. How do I protect myself from the bad stuff?
Thank you,
Gulliver
Good insurance that is molded to protecting STR operators is the best foundation for risk mitigation. I originally had Proper insurance covering my STRs, I now use Tower Hill Speciality. Half the price and the same coverage
Post: first investment property
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Samuel McCrory:
Quote from @Jarrod Covey:
Quote from @Samuel McCrory:
Investment Info:
Single-family residence buy & hold investment in Foxholm.
Purchase price: $215,000
Cash invested: $50,000
First Investment Property full of learning Curves, but overall very happy with the choice I made to proceed.
What made you interested in investing in this type of deal?
Fully Remodeled home, Corner Lot, New Roof, Bigger sq ft for the area.
How did you finance this deal?
Kiavi
Lessons learned? Challenges?
used hard money and should of gone dscr loan.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Hannah Smith Berkshire Hathaway
Congratulations on completing the your first real estate investment! It sounds like you've taken an important first step in this industry. My own experience was a bit bumpier, but I'm happy for you.
Regarding hard money vs DSCR, hard money is typically used for cash financing, while DSCR is used as a refinancing option if conventional financing is not an option. From my discussions with lenders, they typically require rental history to verify the NOI (Net Operating Income) / total debt service or the debt service coverage ratio
Thank you!! I was thinking DSCR for not having to utilize any credit. What other conventional options are there to utilize so it is not effecting DTI?
Post: duplex hack ?
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Edgar Sanabia:
I'm in the process of purchasing a duplex with two garages. I'm planning on turning the garages into SRT. this way I can have 4 streams of income. what are you thoughts on this strategy?
Creative finesse, looks even more appealing as house hack
Post: FINANCE FOR NEW CONSTRUCTION
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Robert Lumerman:
asset based lenders? never heard of that. I didn't realize a new construction loan would be difficult to get. thanks for the advise
Instead of borrower they qualify the asset. Their rates float 3 - 5 percents above traditional, but you do not have to submit all of the paperwork that is required for traditional loans
Post: Converse, TX STRs
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Sherylyn Holden:
Hi everyone!
I've heard a lot of mixed reviews about the STR community in Converse, TX or near there. Can anyone share their experiences? Ive seen a lot of up and coming apartments and houses being built in that area, which will lead to the value of properties going up. Is this a good place to invest in?
TIA!
I wouldn't sleep on it - especially since it seems like there is low competition, good time to carve your niche out.
To furnish cost effectively, I'd join local Airbnb group on Facebook, plenty of people with furniture willing to sell for half of new.
Over the past quarter I launched two short term rentals in suburbs north of Austin, they've done really well
Post: LLC for Hard Money
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Joseph Taylor:
Sorry I should've been more specific. I'm wondering if the LLC needs to be structured in a certain way and to make it acceptable to hard money?
Also, is there a way to structure it so I can buy multiple properties under the same LLC or is it a better idea to have each property as its own LLC?
It is less about the LLC and more about the EIN you get after submitting formation and filing docs to the IRS
Either an EIN, SSN, ITIN is required by the lender to fund the deal
The lender you are speaking to is likely operating under a REIT, or real estate investment trust, and they cannot lend to individuals. They must lend to an EIN or ITIN
Post: first investment property
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Samuel McCrory:
Investment Info:
Single-family residence buy & hold investment in Foxholm.
Purchase price: $215,000
Cash invested: $50,000
First Investment Property full of learning Curves, but overall very happy with the choice I made to proceed.
What made you interested in investing in this type of deal?
Fully Remodeled home, Corner Lot, New Roof, Bigger sq ft for the area.
How did you finance this deal?
Kiavi
Lessons learned? Challenges?
used hard money and should of gone dscr loan.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Hannah Smith Berkshire Hathaway
Congratulations on completing the your first real estate investment! It sounds like you've taken an important first step in this industry. My own experience was a bit bumpier, but I'm happy for you.
Regarding hard money vs DSCR, hard money is typically used for cash financing, while DSCR is used as a refinancing option if conventional financing is not an option. From my discussions with lenders, they typically require rental history to verify the NOI (Net Operating Income) / total debt service or the debt service coverage ratio
Post: AirBNB Service help
- Lender
- Austin, TX
- Posts 241
- Votes 136
Quote from @Roman Katz:
Hello! I am trying to get my foot into the door with AirBnB with people who already do long term rentals. My idea is to call people with long term rentals and ask if they would like to switch their long term rental into an AirBnb. They would have high margins with this opportunity I just don't know how I can pitch this idea. I would furnish their rental for them through their funds and take care of their customers. Does anyone have any thoughts on how to make this idea a reality or if it is even worth trying to make a reality?
One in ten would hear you out, and after a month you'd have a few to chose from. If you get a place near Power & Light district, I'd imagine you'd do great!