All Forum Posts by: Blake Chapman

Thanks for the reply. I have been on the fence with titling the properties under a entity like a LLC. Simply because I am planning on tapping the equity on the first property to help finance some larger multi-family properties and I know that getting a loan with the entity makes it much harder than just securing it with my credit.

I found a local title company here, they are willing to open up a escrow account and do everything. But I do not want to waste any money if I can accomplish the same protection with a grant deed and title insurance. But if it guarantees me maximum protection then  I have no problem paying.

Hello Everyone,

I am looking for advise on the best way to transfer ownership of a property (most legal protection). I quick summary. Both properties are in California so Warranty Deeds are not used, only Grant deeds or Quit Claim deeds.

I bought a property from a family member a year ago. Without much research and only listening to said family member we did this with a Quit Claim Deed only. Everything has been smooth but with said family member in failing health now I am concerned I have not done enough to protect my full claim of ownership on this property. I currently have no title insurance on the property but that will change. 

I am also now about to purchase a second property from the same family member. However this time I want to make sure I do things 100% right and give myself as much legal protection as possible. I feel a bit exposed with just the Quit Claim Deed.

Should I just contact a title company and pay the closing cost to go through them? Or can I do a grant deed, file it and just purchase title insurance? Will purchasing title insurance on the fist property be enough to guarantee 100% right of ownership? Are there any other steps I should take? 

Thanks in advance for all information or input

Hello everyone,

My new insurance agent just informed me that I should include a waiver of subgrogation into my lease agreements. 

He told me it prevents my tenants from being able to sue me or my insurance company for certain things that I state in the waiver. 

After a little online reading it seems that it only protects someone from my insurance suing them. 

Can someone here clear this up for me and tell me if it is worth amending my lease agreements to include?

thanks for the reply. I plan on selling this duplex within the next 5 years since I am hoping to have mostly large multi-family and retail properties by then. So the loan would be a short term way to free up my equity. Hopefully after putting the 40k in updates i can sell the property for 320-350k and pocket another 100k+ for more leverage. 

I appreciate everyone helping me feel secured that i had the best plan

thanks again for everyone's response! I was offered a 75% LTV through BofA at a 4.125% rate. However i will probably keep the refi at 200k. I'm thinking of using 40k of the 200k to put back into the property so that I can raise rents to help cover the new mortgage while also increasing its value.

The rest of the funds will be used to leverage a multi-family building or perhaps a string of single family properties. 

I don’t like paying interest on my money but i also don’t want to sell any properties for at least 3 years. 

Thanks for the info! However, since this is an investment property of mine would any bank still give me a HELOC? I thought they only did those on primary and second homes?

Hello everyone,

I own a duplex in California that is currently paid off. In its current condition it is worth 250k and needs a bit of work cosmetically, id say 40,000 in updates. I️ currently collect 1850 in rent and have both units rented out. 

I want to get into larger multi-family deals and have been thinking about refinancing the property and taking out 200k for updates and reinvestment into a larger deal. 

Thoughts on this? I’d eat up all my profit in rent in a mortgage but I’ll be able to add some great value and hopefully get a 18 unit or larger building with the leverage. 

Or should i just leave my paid off property alone?