All Forum Posts by: Stephen Williams

Quote from @Nick Belsky:

@Stephen Williams

From what we see with our clients, if the insured is in an entity or trust, the rates will almost always be higher, sometimes significantly.  Often, the lender holding the note will require the insured to match the title or personal guarantee for the loan.  One way to find out your question about premium is to simply get quotes from another carrier in your personal name... see how they compare.  You are allowed to switch insurance companies at any time, but you must notify your lender so they can get the mortgagee info added to your new policy to ensure you stay in compliance with your note.

Some lenders may even allow the insured to be in your personal name, then have your entity or trust listed as an ADDITIONAL insured. DSCR, by the way, has had better rates than conventional for about 6 months now, at least at higher LTVs. We are seeing many pricing in the 6's now. However, typically a refi for rate only makes sense if you are getting 1.5-2% lower on rate... each deal is different, obviously, but general rule of thumb.

Cheers!

 Yea that makes this really tough. I have it in a privacy trust and the Trustee is listed on the Deed so they will only put that name on the policy. They’re also quoting $6500. 

I have already looked into DSCR Loans but I don't want to pay the closing costs to. Not even get a 1% drop

Quote from @Jared Townsend:

It is normal and expected for the insurance carrier and lender to both want coverage to be in the name of the deeded owner. It shouldn't been inherently difficult to insure the property in an LLC name, unless you conduct other business activity in that LLC.

The problem I am having is the property and loan are in two different names as many people in real estate might have it for asset protection. 

I can’t get an answer from my broker as to whether I would have a lower premium if it was deeded in my name or not. 

I have been booted from Citizens with a property now they are saying I have to have the policy rewritten under the deeded name on record. As of right now it's my LLC as the trustee for the home.

The quote has gone from an expected $2900 to $6400. I can’t get the information from the agent as to whether it will be lower if the property was in my name. 

My lender has also expressed the reasoning for requiring the property to be insured in my name since that’s who’s name is on the mortgage. 

Just wondering if anyone has run into this. Trying to find ideas here. Maybe it can be different if I was a DSCR loan but I've been waiting for lower rates. It's currently at 7.625%

Quote from @Nida Kazmi:

Quote from @Stephen Williams:

Quote from @Sean Dempsey:

Quote from @Blake Whiddon:

I would be happy to help with anything in the Memphis market.  Please feel free to reach out to me anytime. 

Blake, can you DM me your phone number and I’ll reach out today?

 Sean, were you able to get in touch with Dan?  I have moved property management over to them and so far it’s night and day. They are running a pretty good operation. 

I’m even considering selling these. Not sure I want to do it anymore. 

Does Dan Butler also do property mgmt? He only did hard money lending as far as I knew 

 He’s in charge of a pretty big property management company. They have several thousand properties under management 

Quote from @Sean Dempsey:

Quote from @Blake Whiddon:

I would be happy to help with anything in the Memphis market.  Please feel free to reach out to me anytime. 

Blake, can you DM me your phone number and I’ll reach out today?

 Sean, were you able to get in touch with Dan?  I have moved property management over to them and so far it’s night and day. They are running a pretty good operation. 

I’m even considering selling these. Not sure I want to do it anymore. 

Quote from @Sean Dempsey:

Quote from @Stephen Williams:

Quote from @Sean Dempsey:

Quote from @Stephen Williams:

There are people there that can check on the operation for you.  I had to endure a long drawn out process as well.  They said the issue was with the power company as well.  Out of the 3, Kim was the hardest to get in touch with.  I told them the unanswered phone calls were the deal breaker for me.  If there are delays I can work with that but going silent for months was not something anyone would want to deal with.

I'm still somewhat dealing with it.  I remained with them for property management since they have a year of no charge for doing a deal with them.  I have not had good communication with the property management team either so in the next month or so I am switching over to another company I have already spoke with who also recommended seeing how long I can go with complimentary property management.

I'm actually just a little concerned with whether the tenant is being taken care of or not.

Which company did you go with for property management? I want to switch away from Turnkey as their communication is atrocio

 I reached out to Dan Butler and talked with him. He says he runs into Kenny from time to time because he is well known around Memphis. But he also manages 100’s of homes for investors. 

Do you have Dan’s phone number?

Sorry forgot to add that lol.  I’m not sure how much he can help you if it’s not complete. I just had to take the delay and make sure it was fully complete before I released the last amount of money. Because if you go with someone else and the work isn’t complete you risk having to spend a lot more to go with another contractor. 

When I spoke to Dan he told me it would be best for me to at least give it some time since I’m in my first year where I don’t pay for property management.  So far I have never spoken to Fortress Property Management about the property.  I receive payments from Memphis housing authority and I sometimes worry about if they are taking care of the tenant.  I plan on sending a letter to the tenant with my company email address to make sure they are taken care of  if they are then I’ll just let it go until it really becomes a problem  

Dan Butler

Quote from @Sean Dempsey:

Quote from @Stephen Williams:

There are people there that can check on the operation for you.  I had to endure a long drawn out process as well.  They said the issue was with the power company as well.  Out of the 3, Kim was the hardest to get in touch with.  I told them the unanswered phone calls were the deal breaker for me.  If there are delays I can work with that but going silent for months was not something anyone would want to deal with.

I'm still somewhat dealing with it.  I remained with them for property management since they have a year of no charge for doing a deal with them.  I have not had good communication with the property management team either so in the next month or so I am switching over to another company I have already spoke with who also recommended seeing how long I can go with complimentary property management.

I'm actually just a little concerned with whether the tenant is being taken care of or not.

Which company did you go with for property management? I want to switch away from Turnkey as their communication is atrocio

 I reached out to Dan Butler and talked with him. He says he runs into Kenny from time to time because he is well known around Memphis. But he also manages 100’s of homes for investors. 

There are people there that can check on the operation for you.  I had to endure a long drawn out process as well.  They said the issue was with the power company as well.  Out of the 3, Kim was the hardest to get in touch with.  I told them the unanswered phone calls were the deal breaker for me.  If there are delays I can work with that but going silent for months was not something anyone would want to deal with.

I'm still somewhat dealing with it.  I remained with them for property management since they have a year of no charge for doing a deal with them.  I have not had good communication with the property management team either so in the next month or so I am switching over to another company I have already spoke with who also recommended seeing how long I can go with complimentary property management.

I'm actually just a little concerned with whether the tenant is being taken care of or not.

Quote from @Scott B.:

@Stephen Williams - Sadly Kenny Shaw and his team continue along this path. We purchased a property with them with a light 45-day rehab and after 40 days all communication ceased. We've had zero phone calls answered or returned, multiple promises or calls "tomorrow" to talk through issues unmet

At this point we've hired another PM (Sadly MidSouth Homebuyers, whom we have other properties with and have had nothing but excellent experience, wouldn't manage this location) who is now going through re-keying the property and assessing the state of the rehab.

This was a test property for us, so we learned what we wanted to learn on this transaction. Sometimes even with referrals and trying to vet an operator they still fall flat when it comes to execution.

 They managed to finish an the tenant is in place.  Still waiting on payments to start with the city of Memphis. it was supposed to be October 1st but I haven't seen anything yet.  I' on the road for work so plan to call and get an update eventually.  I have had some responses but still no consistency.  We had a discussion about the costs I have endured and the low ball offer to cover expenses for going 5 months past contract deadline but haven't heard back. 

It just doesn't seem like an oversight when literally no one in the organization answers or returns your calls.  I can see if one person is hard to reach but everyone?

UPDATE:

I have finally reached the point that the property in question has a tenant moved in. It has passed it's housing inspection and the Midsouth Turnkey is footing the bill for the rent until the housing office starts paying. To say this BRRR was a disappointment is an understatement. After 3 delays the appraisal was finally done and it came in $28K short of the ARV that was done when I purchased the property to which a lot can change with appraisals after almost a year of being delayed.

I bought the property 12/1/23 with a 90 day SOW contract.  It is now August so it's been over 9 months.  The only thing that has occurred as sold to me was the amount of rent from the City of Memphis but we don't know if that will possibly change as well.

I know I reached out for points of contact in the area for doing more transactions but at this point I think I'm done.  I do not see myself buying another single family rental.  As far as investing for income and equity I am moving strictly to Syndications.  They have appealed to me since I learned about them and I have learned a lot from Jim Pfiefer and Left Field Investors.  They just announced they were bought out by Bigger Pockets and will be joining the company under the name PassivePockets and I can't wait to continue to learn with them.

Given the required time and number of transactions needed to get the right people for these I do not have the time to do it.  I've had nothing but price gouging and overall terrible service when it has come to dealing with single family homes.

I wanted to say thank you to everyone that reached out and provided their help and I'll hopefully see some of you in the PassivePockets forum.