All Forum Posts by: Amir Navabpour

Thinking about putting several of my properties in an LLC, and wanted to gather peoples thoughts on a topic that seems to keep coming: What is the liklihood of triggering the DOS clause?

I already have an umbrealla liability policy but feel like more protection can't hurt. Here is my concern: Alot of these regional banks RE investors have loans with have lost alot of deposits, they're probably hungry to increase their balance sheets right now. Also, in a declining int rates environment, a bank doesn't have incentive to call DOS clauses as they're likely to trade that mortgage for another w/ a lower rate. However, right now rates are higher, and likely going even a little higher. So if a bank calls your loan due at 3%, they take that balance and lend it back out at 6% today, so I wonder if they are more likely to do it.

Here's my question: In the event a bank calls the DOS clause, and one agrees to transfer the title from the LLC back into their names. Would that nullify their request to call the loan due? this is assuming all payments are made on time.

I just realized that one of my rentals in Lees Summit is in a flood zone. According to Redfin its in an area of "Severe" risk of floods. I got a quote from my Insurance broker, and he was saying flood insurance is a tough call from an ROI perspective as they are so rare, but if they happen the damage is insane. The property is worth about 235k, and the annual premiun would be 750. Curious if you would pull the trigger or not?

I have a rental that has had 3-4 backups.  They augered it and found signifant roots each time.  I am trying to think of the most cost effective way to deal with this to prevent fututre back ups.  I have seen quotes anywhere from 150-700 for jetting sewer pipes w/ Root X which seems like a very wide swing.  I almost wonder if there is a spectrum of services I am not aware of.   If you've done this, in your experience was this an effective treatment, to at least buy a few years?  Is there a cost effective way to deal with the root (pun intended) of this issue? 

@John Mocker yes of course. Just as I take peoples perspective who work in insurance with a grain of salt. If you model out the risk and savings, time value of money etc it’s tempting to do this.

I have owned rentals for about 7 years and in that time I have put in a few claims. Seems like no matter what the issue is they reject it. eBay even told me after the last one that putting in claims will increase my policy premiums. The latest one was for hail damage I had a roofer checkout who thought I should get something approved. Of course the insurance adjuster didn’t agree. Insurance in general seems like a borderline scam to me.

The main value I see in the policies is the liability portion. But I have an umbrella commercial liability policy for that. Curious if anyone has ever considered canceling their home owners policies for homes they own free and clear? Seems like a waste of money. I think one would only regret this decision If their home ever burned down or a natural disaster hit. I talked to a friend of mine who sold insurance for 15 years and he was also saying that often times when a natural disaster hits the insurance companies will claim bankruptcy forcing the government to step in

@Johanna R. I currently work with KC home rental and overall have a good experience working with them. To me what is most important is responsiveness and effective problem solving. They do both well

@Johanna R. I had a very bad experience with Voepel. I went to visit my properties and found plenty of repairs they charged me for, that were in fact never done. Needless to say I terminated them

@Nicholas Burch try LinkedIn learning

@Kevin Sobilo

Appreciate the advice.  These properites are in MO, I'll check on whether there are transfer taxes. I certainly wouldn't do it if I have to pay a 1.5% tax to give myself, my own property.   

I am in the process of trying to get my properties that are currently in my name into an LLC. The step I am stuck on now is actually deeding ownership from my name into the actual LLC. I found the apprpriate deed forms to fill out, and called the county. They said I need to get the deed's filled out/notarized and filled with the county office. They suggested contactign a RE attorney to finish the process. I am trying to avoid spending alot of money for some straight forward paperwork. Has anyone ever used a title company, or just a notary to complete a process like this?