All Forum Posts by: Gio Kattan

Hello community!

I’d appreciate your insights on a complex insurance setup for my recent property purchase.

My Setup:

• Property purchased in FL under a Trust

• Trust is owned by an LLC in FL

• Holding company LLC in WY owns the FL LLC

Situation:

I acquired the property through a subject-to (sub-to) deal, taking over the seller’s mortgage, and I’m arranging insurance coverage.

My attorney suggests I:

1. Maintain the seller’s existing insurance.

2. Obtain a new policy under the FL LLC (the beneficiary of the Trust).

3. Add the Trust as additionally insured on the new policy.

The complication is that the seller no longer holds any interest in the Trust, LLCs, Deed, or Settlement Statement, which my broker says prevents them from being added to the new policy.

I’d prefer to avoid double-paying for insurance if possible.

Additional Note: This property will be used as a short-term rental, which adds to the complexity.

Any advice on how to structure the insurance to cover all bases without redundant costs would be greatly appreciated!

Thank you!

Hello community!

I would greatly appreciate your input on this matter.

Here is my setup

Purchased property under a Trust

LLC in FL owns the Trust

Holding company LLC in WY owns LLC in FL

I purchased the property sub-to, took over the seller's mortgage and I’m working on setting up insurance for the property.

I understand I need to keep the seller as additionally insured in my insurance, but the seller no longer has "interest" (ownership) either in the Trust, nor any of the LLCs nor in the Deed nor Settlement Statement. So my insurance broker says he cannot be added.

My attorney advises I should maintain the previous insurance plus setup a new one under the LLC in FL who is the beneficiary of the Trust and then to add the Trust as additionally insured.

But i would like to avoid double paying for insurance.

Will you guys please advise on how to go about doing this?

The property will be used as short term rental, I know this is what makes it tricky.

Thank you!

Gio K

 Thank you very much for your reply!

Hello Community!

I’d appreciate some guidance on a few matters regarding my investment properties.

I recently purchased several properties in the following locations:

• Ft. Lauderdale, FL

• North Palm Beach, FL

• Plantation, FL

• Pompano Beach, FL

These acquisitions were done creatively, assuming the existing loans via subject-to deals without inspections. As a result, I’m uncertain if any of the properties have illegal additions or modifications. For instance, one property seems to have an extra bathroom that is not listed in the county records.

I plan to make some modifications, including removing a closet wall to expand a bathroom and taking out a kitchen island that contains electrical outlets and a switch. Additionally, I’m considering converting a garage into a bedroom.

If I want to list these properties on Airbnb, I understand I’ll need to obtain the following:

• BTR (Business Tax Receipt)

• CU (Certificate of Use)

For these, I’ll need to undergo a city inspection. My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability. For instance, will I have to undo the bathroom that was already created?

I’d be very grateful for any advice or recommendations on how best to approach these modifications.

Also if I were to refinance in the future to pull out cash from the property, is this something that banks could refuse to lend on if I have code violations of lets say a wall that was moved or removed?

Thank you for your time and assistance!

Best regards,

Gio K

Hello Community!

I’d appreciate some guidance on a few matters regarding my investment properties.

I recently purchased several properties in the following locations:

• Ft. Lauderdale, FL

• North Palm Beach, FL

• Plantation, FL

• Pompano Beach, FL

These acquisitions were done creatively, assuming the existing loans via subject-to deals without inspections. As a result, I’m uncertain if any of the properties have illegal additions or modifications. For instance, one property seems to have an extra bathroom that is not listed in the county records.

I plan to make some modifications, including removing a closet wall to expand a bathroom and taking out a kitchen island that contains electrical outlets and a switch. Additionally, I’m considering converting a garage into a bedroom.

If I want to list these properties on Airbnb, I understand I’ll need to obtain the following:

• BTR (Business Tax Receipt)

• CU (Certificate of Use)

For these, I’ll need to undergo a city inspection. My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability. For instance, will I have to undo the bathroom that was already created?

I’d be very grateful for any advice or recommendations on how best to approach these modifications.

Also if I were to refinance in the future to pull out cash from the property, is this something that banks could refuse to lend on if I have code violations of lets say a wall that was moved or removed?

Thank you for your time and assistance!

Best regards,

Gio K

Hello BiggerPockets Community,

I’m currently in the process of expanding my real estate portfolio and am looking to establish relationships with hard money lenders who can offer the most competitive and lowest rates available in the market.

I am a business owner with $1.5 million in verifiable personal funds. I'm actively purchasing multiple properties and would like to leverage hard money loans with terms typically ranging from 1.5 to 2 years.

My primary focus is on securing financing that aligns with my investment goals while ensuring that the rates and terms are the most favorable. If you are a lender with competitive offerings or if you have contacts who can meet these criteria, I would greatly appreciate the connection.

Please feel free to reach out directly. I am keen on discussing potential opportunities and building long-term relationships.

Thank you,

Gio K.

Hello BiggerPockets Community,

I’m currently in the process of expanding my real estate portfolio and am looking to establish relationships with hard money lenders who can offer the most competitive and lowest rates available in the market.

I am a business owner with $1.5 million in verifiable funds. I'm actively purchasing multiple properties and would like to leverage hard money loans with terms typically ranging from 1.5 to 2 years.

My primary focus is on securing financing that aligns with my investment goals while ensuring that the rates and terms are the most favorable. If you are a lender with competitive offerings or if you have contacts who can meet these criteria, I would greatly appreciate the connection.

Please feel free to reach out directly. I am keen on discussing potential opportunities and building long-term relationships.

Thank you,

Gio K.