All Forum Posts by: Jerry Jenkins

Congrats on the deals but was hoping you could provide a few details on the private money loan you accepted. I am researching looking for a rental hold using 5 or 10 year private money on rentals with 30% down and great cashflow and am wondering what terms most private lenders are looking for.  30 years experience in real estate, Realtor, with 800+ credit score.

Whee do I start??? I started Airbnb while living in a 4 bedroom 2 bath home and renting rooms for over a year and then switch to whole house listing jan of 2017. Here are a few recommendations to consider.

1.White decent sheets. I paid $300 per sheet set for 750 thread count and after 200+reviews I have had ZERO comments on sheets.

2.Schlage smart lock with wifi linked to a Vera Lite Hub.I can program each guest a code to their Airbnb phone number and control down to the minute when the code works and get emails or texts showing who opened the lock when.  Most guests I never have to meet and they can checkin anytime.  maids also get a code.

3.Ring Stick Up Camera also linked to Vera Lite Hub motion activated so where guest arrive I have ability to see AND TALK to them if they are having problems with lock. No monthly fee unless you want cloud storage of videos in case of theft or too many guests arriving Monthly fee is $3.00 a month.

4. 2 sheet sets per bed AND 2 Comforters for quicker change over.

5 HUGE tip....Beyondpricing.com. They will give you a 90 free trial and use Hotel/Airplane pricing model that factors in local events, avg. rate of hotels, avg. rate for other Airbnb listings and their occupancy rate to change your room pricing every night.  After 90 days if you continue they charge 1% of booked revenue and you can link Airbnb/Homeaway/VRBO colanders together so no double bookings. I usually get $250 to$325 a night for Friday and Saturday and they priced last New Years at over $900 and still somebody booked it for 2 days paying me $1400.  that one booking for 2 nights paid me for their service for over a year.

Maids; have a couple of different people you can call in case one is not able to make it or if their cleaning standards drop off.

6. White towels; I put 2 per room and have another 2 per room in closet for fast change over if needed.

7.Fast internet connection with a very good router for better video from camera and guest ability to stream movies.

Paying extra principal only to borrow it again in a Refi means that you get zero return during that period.  A Refi can be a great idea to free up equity for additional properties because if you can borrow at 4 % or 5% and then reinvest the capitol at 10% or higher so get faster velocity of your money.  I have never made great money just off cashflow on long term rentals after paying taxs, repairs, vacancy, etc.  The real goal for me has always been appreciation.

Yes; just google title companies for that city and talk to them about the transaction.  To have a "legal" transaction the only things you need is property address, contract signed by both parties detailing terms, and proof of funds to close.  State laws vary state to state but title companies should be able to tell you what is required and if it must be handled by an attorney they can refer one.

It depends on state law where the property is.  Typically east of the Mississippi attorneys are used and west is where Title Companies handle real estate transaction.  New Mexico I think use Title Companies so just google a couple in your city and ask them if they can handle the transaction.  If you have a contract with the seller and cash to close ; it should be an easy quick file for them to work to ensure both sides are protected.

Each type and size of Brokerage have their own pros and cons.  A large Brokerage like KW, can provide a new agent lots of training, support, and shorten your learning curve but they will also take a larger commission split. Smaller brokerages will give you lower monthly fees and better splits but less guidance and training.  90% of agents leave the business within 2 years because they do not have the client base that provides 65% of most Realtors income and the biggest factor is that being a Realtor is for most their first "self employment" job and there usually is no one telling you what time to work and what to do.  My best advice is to interview with several brokerages in your area, get a feel for what suits your needs and then try to join a team where a senior agent will allow you to train under them and give you leads, training, and allow you to free up their time for more income generating items.  90% of what Realtors do is clerical or time consuming like inputting data, sitting Open Houses, and keeping up with paperwork.

The question you is a math problem only.  If you use extra cash to pay down mortgage then you are earning a zero rate of return until the mortgage is completely paid off and at that point you will earn the reduced amount of interest paid over the life of the loan.  If you have another use of those funds then what is the potential rate of return the cash will earn?  The more cash you invest in a property in general ; the lower your Rate Of Return will be.  But, Rate Of Return is only one factor to consider.  Another factor is Cashflow and that is not effected by paying additional payments after the loan terms are set.