All Forum Posts by: Tim Silvers

House was severely fire damaged and subsequently deemed uninhabitable and demo'd by the city along with the solar panels. In addition, the lessee of record is deceased. Death certificate was already sent some time back to the solar lease company. The surviving spouse (not on the lien) tried to file a claim for the fire, but was denied and settlement (complex situation). 

A UCC-1 lien still show in county records in the name of the leasing company. 

What is the disposition of the lien in this instance?

Average vacancy term on a renovation project: 3-6 mos. unless severely damaged (i.e. fire). I haven't gotten a quote from my agent on any properties from Allstate. It sounds like what you're describing is a landlord policy as opposed to builder's risk or vacant dwelling policy:

 https://www.allstate.com/resources/landlord-insurance/what-i...

Care to share what carriers and how much extra? I was using Farmers, America Modern and Foremost and none of them allow that option for condos. I got a quote from a surplus lines for $600 for 3 mos. with a $1K deductible which makes no sense. Could be the market here in Vegas.

I just did a rough calculation, and for me, I'm looking at a 30%+ annualized return on my cash doing fix and flips, so If I put $1mm total into flips (that includes acquisition, rehab, holding costs, etc.), I'm netting over $300K for the year. That does not factor in my project management time, travel expense and accounting time. Still, where can you get that ROI on my funds in something relatively risk free as long as you buy right?

Yes. This would be structured as a 90-day maximum (to allow for the lien filing statute to expire or get a release of liability, whichever is sooner) holdback in escrow. I suggested it to the seller as an option if the GC refuses to sign a release of liability. Problem is - the seller needs the cash to satisfy the mortgage + have funds to move to a new house. I am supposed to close in a week. What to do?

Purchasing a fix and flip from a seller that had prior issues with GC and is concerned that GC may file a mechanic's lien on the property even after the property is sold to me. The repair work was for an insurance claim. GC is incompetent, has failed to get proper permits and has stalled on the balance of the work so seller just wants out.

Escrow doesn't close until the 24th. GC has 90 days (per Nevada law) from when the work was claimed to have been done file the lien.

Unfortunately, I don't have the luxury of waiting out the 90 days since the seller needs the cash soon and I need the deal. Of course, if the lien is filed after we get a prelim but prior to close, we'll pick it up on the date down which would delay the close, but not leave me stuck. Seller can substantiate that he paid the contractor far in excess of the work done, but I want to be preemptive on this if I can, despite the fact we can show the invalidity of any mechanic's lien from this GC were it to be filed.

This post says I can use a bond or surety which sets money aside to account for the lien amount and then get the lien off the title. The contractor does not necessarily get the money, but has to pursue it, and it still allows me to sell the property.

Any further advice/thoughts greatly appreciated.

Just purchased a fire-damage property for rehab and am in desperate need of hazard insurance. I have 3 agents working on a builders risk policy, but so far the one I received a quote from is with Lloyd's of London via a surplus lines reinsuror and comes out to about $400 a month for 6 months of which 50% is fully earned. I expect the project to take about that time to get done.

My GC has liability insurance and I'm trying to find out if I could add builders risk to his policy and then just get regular insurance. Does anyone know?

It seems almost impossible to find even a BR policy that will take a property with a prior fire history.

Exactly for those of us doing BRRRs/flips:

https://www.homedepot.com/p/Ri...

Anyone know of a good place to start for DSCR/no doc HELOC for either o/o or non o/o property?