All Forum Posts by: Dion DePaoli

Your agent should have really covered this with you.

Vacant Hazard Insurance is for a home that is vacant and covers liabilities that are in concert with home not having anyone it such as squatters breaking in and getting hurt as well as natural damage like the wind damaging the roof.

A construction policy will typically cover all of this and have additional coverage for the liabilities surrounding the construction that is taking place on the property. Things like material theft and workers getting hurt or squatters getting hurt, etc.

Your VHI policy should cover minor repairs but if you are doing some major construction then you will need to get a construction policy. The policy will detail the definitions of such events or you should be able to ask your agent. The terms and conditions will overlap a bit between the two. You should not need to carry two separate policies.

Again, you agent should be able to explain this in detail, if they can't go find another one.

That is not really one size fits all. State specific guidance will apply. Local real estate attorney should help. You need it to be enforceable.

Sticky mess. You will want to call and speak to the county or city, etc on each one. They will tell you if there are fines for them being open and give you some idea of what the cost to resolve them will be as far as the county paperwork goes.

Typically, you will have to get the permits re-opened and get the work inspected to close the permit properly. Any work not done correctly will be your responsibility.

I have seen some instances where these fines and fee start to exceed the value of the home. Some counties are not so nice when it comes to compromise on reducing the fees, which is pretty silly. They may restrict new permits from being issued until the old ones are resolved.

Not all that uncommon in today's market. Call on them and usually you will get pointed in the right direction. Ensure you get information on current fees/fines and the path to cure the issue. You can also ask how to dispute the fines. The office will usually tell you all of that information.

You will have to open a permit for this and get it inspected and approved. Some cities and municipalities will fine the owner once they find out something like this is done until it is resolved. Working "fine" and being done to code are not always the same thing. For plumbing to be inspected you will have to open it up so the inspector and look at it. Either way, your spending some money to fix it. If it is your house, find a contractor to come over and give you some advice. Situations like this are not all that uncommon and good contracts can give you an idea of a path to resolution.

If the investor files personal bankruptcy they may not have full access to their assets until the bankruptcy plan is completed. The bankruptcy trustee is not going to let the investor pull a bunch of cash out and dump it into something else and thus not have money to pay the creditors.

Has not yet been extended.

It expires this month (December) not Feb 2012. Nothing like waiting until the last moment.

Find the legal extension here: http://edocket.access.gpo.gov/2011/2011-2434.htm

It seems by the virtue of the question that this may be a bit new to you and perhaps your investor. Promissory notes come in a wide array of varieties and if this indeed new to you, your best bet may be to go speak with a local real estate attorney to ensure you get some good advice. To assume you will be able to take a template promissory note from someone else and use it may get you in to trouble. Is the note secured or unsecured? What terms and conditions do you seek in your note? What recourse do you intend to offer your investor? What terms and conditions does you investor want?

My advice to you, go talk to a local real estate attorney and get local legal help. Do it right the first time, that will save you lots of heart ache in the future.

So it could be the AM is shooting for month end numbers and asking you, "well if its cash, let's just close". If you push through on your 21 day mark, I would ask you for a step escrow and short due diligence time.

Do you have capital to lockup the deal? If you do then question for you, is how high is your tolerance for risk into the deal? How much confidence do you have in your number? How did you get to your number without an investor somewhere?

Sounds like if you want out before you get exposure you don't want, you will have to lockup your back end prior to the expiration of the due diligence period.

The good news is you know where he is a seller. If your not so sure of yourself, then don't put it into contract until you find someone.

Hope it turns out well for you. Keep us posted.

Math is absolute not mysterious. Regardless of the clerical error, I agree with Jackie, you should have known. This is not an error the title company will process on their O&E as you agreed to pay X for the property per your contract.

At this juncture, the sale is not complete because you have not paid the full purchase price to the seller. If you do not cure the issue by giving them the money, you do not own the house and it will get really messy trying to recoup your rehab money that you have sunk into the house already.

Looking to connect with some Virginia based investors or investors interested in the Virginia, Maryland, DC area. We are working through liquidating a portfolio of mostly commercial loans with some residential loans and a very small amount or REO.

The portfolio consists of performing, non performing, restructured performing and REO. These are small community bank type loans. Average balance is around $1.5 Million with some smaller loans around $250,000. Most loans exceed 100% LTV with an estimated average haircut around 30% to 40% to today's As Is value.

This is not a bulk sale in any manner. The assets will be sold off one by one or in small groups. Institutional investors or similar high return based investors will have a difficult time delivering an acceptable offer. The assets will be reconciled to an agreed upon value but deep discounts there after will not likely be successful offers.

We can be broker friendly but not broker chain friendly, sorry. We are really interested in the end investor. If this is of any interest to some folks here on BP, please feel free to contact me via BP message. I will be happy to address any public questions as well.

Thanks and happy investing.