All Forum Posts by: Bill Gulley

@Amy A.

Yes, that can be tricky, if the owner moves out and they do an installment contract they should ask about a landlord's policy. The owner is  on the hook to the buyer under their agreement, so the owner must be active in any claim process as the owner. This can sometimes be assigned by a durable power of attorney for the buyer to act for the owner, you know, the owner is out of town and I'm the resident.

Now, in a fix and flip, a landlords policy can cover small jobs,  probably not materials or tools left there, but liability for the electrician getting bit my your poodle. 

Larger rehab deals may not be covered, you need to look at a builder's risk policy.

An old rule of thumb, if any specialized policy exists for a certain risk, then only that type of policy will afford full protection of that risk. If your car is in the garage and the house burns down, the homeowner's doesn't pay for your car under contents coverage, you need a comprehensive  auto policy.

So, you need to be aware of the different types of policies available and how they are used. Homeowner's, Landlords, Builder's Risk, Renter's Policies, Blanket Liability Policies, a bit about Auto Policies because trees fall on someone's car, Professional Liability if you're consulting, Lender's Liability if you're lending (and if you're not consulting or lending, understanding these helps protect you as a consumer, knowing you're covered if they really screw up).  That's why it's best to consult with a good agent, they want to write policies but they need to know your plan, purpose and strategy to ensure you're properly covered. 

There are some tricks to the game, additional insured, lien holder coverage, loss payee and power of attorney. Good luck :) 

Just saying,  in the PHA you'll find 12/14/18 inch commercial  grade tiles glued not the sticky back stuff, buy extras to have on hand. If damaged one tile can be replaced, you don't need to lay a new floor. :)

@Michael Sessa

Yes, DSS can release the lien, there may be a case number referenced on the lien, title companies can coordinate the release. Good luck :)  

By "refi" I'm saying you need the ability to obtain financing if and when the lender calls the mortgage due after a sub-to sale, that is simply paying off the existing lien holders. Many ignore the due on sale clause, but it is real and you can lose the place. Te "strategy" is being able to obtain financing as needed when needed, that could be days after you pull off some seller wrap financed deal. :)

I just can't agree with casual advice concerning any CFD or Land Contract, they have serious issues, they are out dated strategies and you can have title issues as well as timing issues of deeds conveyed.

Read the posts on the topic,  I've darn near written a book on it here.

Don't do any Sub-2 deal that you cannot refinance in 90 days! That means having equity, cash or forced equity established and be ready to payoff any lender. 

All financing contracts lean to the lender, if you devise one that doesn't you're probably entering predatory dealing, lender over borrower and seller over buyer is basic law.

Read up, good luck :)

Oh Matt, that's two different matters, insured deposits and liquidation which is handled by FDIC, any issues arises ireef you don't set up the accounts to the max limits to be insured, just use more than one bank. FDIC has had powers to liquidate since it was established, or the Comptroller of Currency for National Banks.

As Jerry W. pointed out, the DF Act and SAFE Act are still not known in the legal community and even worse, grossly misunderstood by lay persons, including the majority of Congress, I'll bet not one Congressman can explain why we have that regulatory structure much less how it operates.

So, we have politics, Congress can slash and burn all they like, but we still have the Senate

We also have stand alone State Laws now with predatory dealing and lending,  that is a very broad scope and could take in anything that falls out of the DF Act. For example, not qualifying a buyer in some rent to own, take  it  back, rinse and repeat scam. 

I totally agree, this engine needs a tune up, but not scrapped. The issue is is that Congress is inept and can't tune it up, I'm sure here are a few Senators that do know how to turn the screws.

While I guess it could happened (stranger things have) don't hold your breath. :)

Great comments; I was redirected back to this topic.

I do not suggest you "market" membership to any LLC, that can become an SEC matter, you move members in or out between people you know already.

Using a UCC Filing you can pledge assets of one LLC to another as well as income generated from any other asset, with this being accomplished after you buy and finance a deal, but your lender is in first position.

Asking for a loan publicly by a corp also becomes a security issue, depends on collateral and use of funds too, when dealing with family or friends, you simply ask you don't take out an ad in the WSJ! That's what bonds are, a loan secured by a promise to pay a certain sum over a period of time.  :) 

I suggest you consider a Series LLC.

Do not even mention stock !

Partners may have options to buy interests in an LLC.

Your Operating Agreement governs the members, this is not a public document and can be amended any time.

Members can also exit at will, another may join, depends on the project.

A Member can also be another LLC, so LLC A could have 3 members and join as one member of LLC B then having 3 members.

See a good business attorney! This is not a DIY thing. Good luck :)

I didn't say anything about showing documentation, the script will do, you cannot question medical authority or make unreasonable demands like a doctor's qualification or their place of practice. 

They don't have to show a high degree of any disability, only that which in the medical authority's opinion would benefit their patient. 

Documents need to be current, within a year, the patient does not have to be under ongoing therapy or care like some AA meeting. 

I'd say your number 2 is twisting a bit, no real estate broker, this is for mom and pop selling or leasing their home, I doubt a landlord in the business of leasing properties will be excused because he doesn't have a Realtor or because he owns the property, look deeper to the intent and applicability of the regulation, while it may not be spelled out, I'd say if I had 50 rentals tey would look at me to meet higher standards of care in my dealings. 

Right, no accommodation needs to be made. 

My issue wasn't to what may be applicable but to question medical authority, phrasing an admission of mental defect when a disability does not need to be extreme as it was implied or demanding a medical specialty or location of practice......that's absurd really. 

Sufficient documentation is a script, stating need, as I mentioned, all they need to acknowledge is that they are better with the company of the service animal, if you want to go past that with more requirements made by unfounded medical opinions then I'd suggest you get ready to explain it to a judge or HUD investigator.

No issue at all with the rest of the stuff.....

I'll remind folks too, HUD is broken up in districts, local customs in court apply, legal opinions may vary, but the obvious is don't push your luck harassing tenants or applicants about any disability, they likely know more than you do about their circumstances. :)

 That's what I've mentioned before, people sharing docs and finding trouble.

IMO, that's pure BS, you're asking for someone to admit to a mental issue and it be confirmed, when you are not allowed to ask them medical questions as to why they have the animal......

All you can do is ask for a copy of a doctor's scrpt, you cannot question the doctor's opinion or their knowledge or suggest they are not competent by requiring any medical specialty. Any doctor who can legally prescribe treatment may do so.

Usually, a doctor won't prescribe anything outside of their scope of treatment, but depression or anxiety are pretty common and even a family practitioner can go there! 

This is what happens with folks playing attorney get half backed ideas, really!

Hey, your doctor isn't good enough to write your script, you have to go to a mental health professional  and they must tell me you are under current treatment, they have to be local as well and tell me you are mentally or emotionally disabled......pure hog wash.

Your VA hospital isn't in your town! No law requires a local doctor and you can't require one either!

No clue at all,  questioning medical authority.

The tenant does not have to be determined to be disabled, they could be functioning fine with support........ veterans for example, and they don't have to have them 24/7 either, just as needed.  

I don't really care about those who play attorney and draft junk, but I do care when it gets posted for others to use as if they know what they are talking about!  And, you don't sir!

Trying to out smart regulations with whimpy ideas or opinions is not advised.  :)