All Forum Posts by: Tim Silvers

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?

Buying a fire-damaged SFR sub2 in which the insurance will cover the entire cost to repair/renovate (the house is gutted to the studs, so I will wind up with a 100% brand new interior). I will be using my contractor who would receive the claim proceeds via the public adjuster that has a contract with the seller and that I work with.

Seller has 3% fixed rate loan of $200K, 28 year remaining, 30-year am., needs $60K from me as down to use as his down for a contingent sale on a new house. I am working with a savvy title co. that will insure the title subject to the mortgage remaining in the seller's name. Obviously makes no sense to refi the loan while I own the property with a fixed rate of 3%.

End goal: fix and flip or BRRRR.

Seller's main concerns:

1) What guarantees does seller have that I wouldn’t walk off the project leaving him on the hook for 2 mortgages?

2) Once the repairs are completed, how long would seller still be responsible (as guarantor) for the loan?

Addressing the seller's concerns:

Other than forfeiture of my cash down payment of $65K in the event I default on my promise to make the monthly loan payments, I'm thinking of adding the following to the transaction to provide additional assurance to the seller:

I set up a separate escrow account and agreement in which I (buyer) deposit 1 year's total payments in advance from which the note servicer would draft the monthly payment via ACH (autopay). In the event the property is sold and the loan satisfied or refinanced prior to 1 year, the remaining balance in the escrow account would be returned to me/buyer. If the underlying mortgage remains outstanding past 1 year, then I would be obligated to fund for another year, and so on. The trust factor is beyond the initial year (e.g. something happens to me or I default and the sellers are stuck). That's the part I get lost on how to remedy.

As to the DOS clause - I would put the property in a trust vested with the Seller's last name (e.g. "Smith Family Land Trust" with me as TTEE) so it doesn't raise red flags with lender. Loan is FreddieMac so doing a trust minimizes risk of loan being accelerated from what I understand.

Thoughts?

Update: Best I could get out of them was an address to send a letter requesting for the fees to be removed due to their error. They could or would not provide any breakdown or detailed accounting as to their fees, not surprisingly.