All Forum Posts by: Amanda Williams

Originally posted by @Robert Gilstrap:

@Amanda Williams  Get with an insurance broker who is experienced in commercial insurance. Your new policy will be in your title holding entities name but when the broker prints out the ACCORD form that goes to the mortgage company it needs to list the mortgagors name on the top line with the acronym ATIMA beside their name and then your title holding entity name right below that. Once received by the mortgage company they see the borrows name and they are good to go. Any secondary name to them is irrelevant.

ATIMA is "As Their Interests May Appear"

If your insurance person doesn't know what ATIMA means then find a new insurance person.

  Robert - thank you so much for this incredibly useful information!! I have contacted NREIG about this to get their thoughts. Before reading your post, I spoke with them as they are used to doing Subject To deals and they said that the policy holder would switch to my entity name with the mortgagor's name as secondary - I am interested to see what their feedback is with your suggestion -- as your approach seems to send less "red flags". Again, thanks for the input!

Hello there. In the process of my first "subject to" deal. I have looked through the forums, but dont have clarity yet on how to handle the home insurance with the transaction.  The seller currently has insurance, so how do I transition that over to my company instead of the seller without alerting the mortgage company?

Hello there. In the process of my first "subject to" deal. I have looked through the forums, but dont have clarity yet on how to handle the home insurance with the transaction.  The seller currently has insurance, so how do I transition that over to my company instead of the seller without alerting the mortgage company?

Originally posted by @Max T.:

The more material you replace (flooring, trim, drywall, subfloor) the easier it will be. 

My last one had a bad cat urine odor problem.

In addition to the demo I used a combination of liquid enzyme (Mr. Icky Poo) and a $75 ozone generator, both from amazon. Multiple treatments of both.

Eventually we got it.

Thanks for sharing your experience. I have looked at the ozone machines - was it pretty straightforward on how to use it and how much do you think it helped? 

Hello! I am closing on a house Tuesday that has a significant pet odor issue! There have been about 6 dogs, a bird, and other caged animals living there.  It seems like getting rid of the odor can be a significant issue. I am debating whether or not I should consider having it professionally treated.  I would welcome any feedback on products/methods you did yourself that worked AND/OR feedback on hiring a professional to deal with it. Thanks so much!!

All,

Thank you for all of the great advice and thoughts. So great to have a group to get feedback from. After reviewing all of your comments, I met with my CPA yesterday and reviewed scenarios. We landed on selling as a solid option that shouldn't have a significant tax impact with the new tax law (and the fact that this will be my first flip). Now, trying to get the project finished and dealing with the various challenges of managing contractors :( !! 

- Amanda 

@Costin I. That is interesting. Two questions: 1. I am afraid the 40k profit gets eaten away quickly w realtor fees and taxes. Isn't the tax burden on flips upwards of 30% +?? 2. How can you offer owner finance on something you dont own free and clear?

Originally posted by @Costin I.:

1. Option 1: Sell and pay the taxes. After all, you'll not have that much tax to pay on the 40K profit.

2. Option 2: Refi into long term and sell as owner finance. You'll get your money out and defer the taxes. Plus, the house might come back to you.

Corby,

Thanks for the feedback. As a new investor I have two goals. To continue to build capital while also slowly acquiring cashflow properties. I have a great cashflow deal set to close end of August.  The deal in this thread was supposed to be one of the "build capital" deals by flipping. Ss I have gotten further into the project and I am seeing the reality of the numbers (including taxes), it has made me question if I would be better off to do a cash out refi at 6 months and then sell after the first lease ends to maximize the payout and reduce the taxes. In this scenario, I would be able to get most of my cash back out, but I would only break even monthly. I live in Asheville, nc and our current market appreciation is ridiculous.....so there is the risk that it slows down. So, all in all, I am learning how hard making a profit can be and questioning my original strategy. Any additional thoughts??

Originally posted by @Corby Goade:

Sounds like you have not defined your criteria for a buy and hold. It's vital to do this if you want to achieve long term success. Personally, I only buy with the intent to hold forever, and I am a BRRRR guy. Sometimes the renovations don't go as smoothly as I hope they will, and I go over budget. If that happens and the property won't cash flow to meet my criteria, I sell it and take the cash to the next deal.

Since you are asking advice- I'd define what you expect rent vs monthly payments to be, ie, how much cash flow you require on a deal. If you can't get there, sell. If you can, you keep it. If you get a great deal every time, you should have multiple exit strategies available to you. 

Best of luck!