All Forum Posts by: Andrew Bosworth

The sales contract can list the LLC from the start - this will help you avoid transfer taxes in the future (when switching the property from your name to the LLC's). The loan is still going to be personally guaranteed, but the sales agreement can list the LLC.

Welcome to Bigger Pockets Ezra!

I'd be curious to hear why you chose to buy a property in Harrisburg, PA!

Michael,

I am an insurance agent in PA. I would recommend calling a few local agencies and see what they can offer in the way of E&O insurance. This is fairly common insurance coverage, which most agencies should be able to quote for you. Lloyd's of London is probably not your best option as they tend to be on the higher end price wise.

Andrew

Great job Huy!

Scott P,

Read the wording of your policy. If still unclear, call your agent. Most P&C policies include legal defense. Some companies provide defense outside of the policy limits, while others include within the policy limits. For instance: Your General Liability limit per occurrence is probably $1,000,000. That means for any one covered claim (peril) you have a $1,000,000 of coverage. Depending on how your policy is structured (every company does it differently), your defense limits are either included within that $1,000,000 limit of coverage, while other companies provide the full $1,000,000 of coverage for damages, then provide additional defense limits outside the $1,000,000.

Again, I would recommend checking with your agent to clarify.

Steve,

Thanks for this link. As a newbie this is an eye-opener; certainly not the type of thing you expect people to do to others. Maybe I'm naïve.

This dialogue is just further proof of the value of BP. Great community here!

Hi Andre. Harrisburg welcomes you too! Are you doing any investing in the area?

...Knight in Shining Armour, eh Jon? Bill might be closer to the truth with the whole rust bucket thing...

You've both made good points, which I've considered. The first step is making contact and simply gauging their needs and interest. Hopefully it can be a win-win for both parties.

I've targeting a property in my area that is soon to be listed at a Sheriff's Sale. Prior to the sale I want to make an offer to the current owners for the price of the outstanding debt and property taxes. With the sale I would also propose to them a rental/lease agreement as well as a buy back option. To me this seems like a win-win for both parties - I purchase a property at significant discount with instant equity and healthy cash flow, while they get to remain in their property.

Am I missing something? Would you include the buy back option, or simply rent it to them? What experience do you have with this type of purchase agreement?

Thanks for the feedback Thomas and Steve. Would you recommend contacting them by phone or sending a letter and let them respond?