All Forum Posts by: Mel K.

@Elizabeth J Humphrey

Elizabeth, I definitely understand your struggle with finding insurance companies. What I ended up doing was getting multiple quotes from varies insurance agents and companies (some of which you will find on BP).  After vetting the agents and comparing offers, I picked a company that I was happy with. I will probably continue to use that agent for the next deal in this area as well. If you need any help with this please PM me. Thanks!

@Richard Zahm

Both the property and I are in FL. The property is a small multi-unit and is for a long term hold intended to produce monthly cashflow. The first note is from a private investor who I would like to pay back in a year or two at most.

I do have insurance for this property. The LT is more so for discretion and to avoid litigation associated with other business ventures. I understand LT will not protect anyone from issues with negligence, but I feel it is worthwhile for my current needs in regards to asset protection. 

It is good to know that there are lenders familiar with the LT structure. Is there an issue then when the deed is in the name of the trust instead of the borrower? Or must it be deeded back to me since I will be the borrower?

I guess what I am trying to do is prepare myself for any challenges I may face when I do attempt to refi.

Hello Everyone,

I had a question that I hope I can get some insight with on the forums. Recently, I purchased a rental property through the help of a private lender. My intentions are to refinance the property with a conventional bank in a year or two in order to pay off my initial private lender. My real estate attorney advises that I need to put this property into a land trust to protect myself and my other assets. My question is whether moving the property to a trust makes refinancing impossible? I assume most banks want to lend to an actual person rather than an entity. Will they require me to be a guarantor? If so, is there a point of doing a trust now? I'm hoping some experienced investors who have used trusts or have refinanced properties can chime in please! Thanks!

@Clarence Larcarte

@Rick Pozos

Thank you all for the advice! According to a few insurance agents I spoke to, it was necessary to have the firewall. I also just feel it's the right thing to do. I did have an engineer check it out and work up specs on building the firewall because this is my first duplex so I do not want to run into problems later with code enforcement. The engineer was someone my GC recommended and gave me a fair price for his services.

@Miles Rivas Thank you for the description. It makes the concept a lot clearer.

@Rishi Patel

I'm actually using a private investor. The plan is to eventually refi this property with a conventional loan and cash-out to continue with additional property purchases.

You're doing a very smart thing with the house hacking technique. If I was single and without kids, I would definitely do the same thing. Just cant fit the family into a multiplex at this stage of our lives.

@Rishi Patel

Congrats on being under contract for your first property. I'm also under contract with my first MFH. It's great that you have tenants already. I would suggest some due diligence at this time. Have an inspector check out the property. If there are structural issues, you want to be aware of that. If there is anything that needs to be repaired, you want to plan that out before you move in or have someone else move in. If you're working with a good realtor, he/she should be able to guide you with some of the details needed to close. I'm currently at the stage of inspections and getting quotes for repairs/reno's. 

I hope this helps and best of luck!

Hello Everyone,

I am interested in purchasing a duplex that does not have a firewall in the attic. What would I need to have done to get it installed? Would I need an architect/engineer evaluate the property before installation? Is the process in putting up a firewall more involved than putting up regular drywall? The property is in Florida and is single story. Any advice would be appreciated. Thanks!

Hello Everyone,

I know this is a newbie question, but can someone please break down the steps toward getting a cash out refinance for a property paid off in cash? What are some requirements lenders typically ask for? Is it far different from a conventional loan in underwriting? Or is it easier to get than a conventional loan? I understand some banks will look for 6 months in reserves for the property. Does this reserve amount only count monthly P&I, taxes, insurance, and maintenance? I would appreciate any insight in the matter. Thank you.

@Jason Bott

@Ratho R.

Thank you both for your input. I understand what you are saying regarding how difficult it is to give accurate estimates. I've gotten a few ballpark estimates from some insurers I spoke to over the week. This is all a learning process for me so I appreciate all the education you guys are giving me.  Greatly appreciated.

Hello all,

Does anyone have a reliable insurance agent I can reach out to for a quote? I'm interested in purchasing a multifamily property in the SW Florida area, specifically Sarasota/Bradenton. My wife called a few companies that were referred to us and they all requested walk-thru's or wind mitigation reports. Can they not give me a conservative quote without this process? It makes it hard to run numbers and see if a property is worth making an offer on. Any help would be greatly appreciated. Thank you!