All Forum Posts by: Mel Park

Thanks.  Question - if I go to the old insurance company or even a different one - the question will be asked  in layman's terms "have you been turned down for insurance and if so was it non payment ,structure, etc"--- at that point I have to say 'yes' and 'roof' right? Would that just cause them to turn me down? 

Also to clarify - just for argument's sake if I didn't have insurance on this particular unit - - would umbrella still cover me for liability on the unit that **doesn't*** have insurance? Thanks

I own (1) primary residence and (3) rental properties. Long and short, switched all my insurance. including auto to one company. The quote was cheaper, service was responsive. One one of my rentals - AFTER issuing the policy they requested an exterior inspection and I figured - it's a townhome in a nice area, hefty HOA fee, maintenance seems looked after. Well........they sent a picture of a section of the roof, some of the shingles are u and guess what- NO insurance on it now. So my current situation is this:

(1)Primary residence - worth 1.2mm

(3) rentals: Equity $500k. And just that 1 rental has no insurance. I've notified the HOA because roofing is under their responsibility but - I highly doubt it gets taken care of soon enough.

Does anyone know - can I buy an umbrella policy even though 1 of my units has no homeowners or rental insurance on it? .  I realize umbrella wouldn't cover property damage.   It's personal liability I am seeking protection from. 

This unit is owned by my LLC but certainly I have signed for the mortgage. So if something happens I honestly don't know if the LLC protects my other assets and I do have non real estate assets in my personal name.

I also wonder if I'm overthinking it in that if something were to happen, wouldn't someone have to truly prove I was liable or negligent? . Point being - if I'm renting your house. And I fall down the steps.  And nothing was wrong with the steps ....I can't prove it's your fault? 


Thanks

Appreciate all the replies I'm digesting.  Ok in exchange for a burger anytime you're in suburban Philly: 

6000+sqft.  Windows always have been leaky - fine, I get that.  Sealing helped a smidge. The following I' *don't* know if it's HVAC related, but here goes. 

2 years ago - 100% new furnace and HVAC due to flood. All good. However cold air comes before it gets warm. Noticeable.  Company adjusted differential - improved.   NOW here's the mystery:

Basement- gets REALLY cold. As in -as cold as outside. I'll watch a game down there - just fine then all of a sudden I need 2 sweaters and a winter hat. I FEEL some breeze. Infrared toy shows cold spots - but not where the air might be coming from.   When heater isn't going I feel TINY trickle from vents. - tiny - -NOT enough to freeze a 1500 sq ft basement so fast.   In the basement I hung streams of toilet paper....and when the room is still, no heat flowing - I notice the toilet paper swaying a little bit. I just can't imagine where the heck the air comes from because when I. see that I check the vents - nothing.

Main level - A lot of the cold is bad windows. BUT same thing. I'll walk the foyer now - it'll be ok. But within 1 hour, wouldn't surprise me if it's really cold.   

ANY ideas?   Heater dude claims furnace fine though I dont think he understood problem. He says it can't be a leaking duct in basement  because then we'd get no heat on main level. 

This is like the Loch Ness monster. If you sat in the basement or even main level I swear, within 60 minutes - with heater set at same temp (74).....you'd go from feeling warm, to really feeling cold.     Luckily I have an attached gazebo with simple baseboard heat - lol that and the outdoor pool are the two places the temp is consistent.    Any ideas what this could be? I don't know where to begin.

So my 1st world problem is a 6000{sq ft home on perfect lot - $20k per year in prop taxes. And I can't even watch a movie in the basement during winter. (I hope this  doesn't keep going in summer)

@Steve K.

Thoughtful comments I appreciate it.  

Question - at a price range of $1.2-$1.8mm.... I just assumed that those buyers want stuff turn-key ready to go.  Modern kitchen, latest fixtures, blah blah.   Am I wrong to assume that?  Thanks

 Valid points all. 

The thing is to sell conventionally - potential buyers understandably would complain about the Ticky-Tacky stuff.   Sure I can sell "as is" but then I'm losing the profits anyway but I was thinking by wholesaling - absolving myself of the complaints.   For instance - someone buys the house - do they come complain to me because it's drafty and cold? Just one reason.

House is safe, livable, etc.  Only issue is the house is drafty and therefore a challenge to keep warm. 

Funny part is if I do all this upgrading - the house will be nicer than it ever has......only when me and my family are leaving it lolol.

Some good points on the ROI and the 875k number. I guess I was hoping....

1850-450=1.400,000 mill - 200k profit = 1,200,000 but I guess wishful thinking. 

No question that as much as it's a desirable place, homes do take long to sell because there's only so many people wanting a house in that price range.  Heck - then I drive around and just 4 minutes away ar 5.5mm houses.  Nice reminder....I'm not all that :)

This question is not regarding an investment home but rather, my personal house. Was curious if flippers/rehabbers buy higher prices homes?    

My house is in a very desirable Philly suburb - great schools, close to I-95, lots of Wall Street/LawFirm/ professional types. 

REALISTIC ARV : $1,850,000

The catch: Needs $450k in work. This would be new kitchen, new master bath, full painting interior and carpeting.  A new entrance door.   Stucco house.    Next door to me is 1000 less square feet, 1 acre less than mine.  Sold for $1,850,000 a year ago.  

I'm wondering if I'd rather just wholesale this house versus get into the weeds with all the contractors, etc. 

Is this price point too high for rehab companies, flippers ,etc?      Thanks

 Thanks.....  do you know about how much that costs....and do I need to have a fresh one made for each loan, or could it be a template after the first loan - if it's in the same state?

 Thanks for the thoughts.  Question..... you have a Flipper you deem creditworthy. You decide to make your loan.    What paperwork, lawyer stuff do you need to make sure you are protected? Is it cookie cutter forms, or is it something that you and the borrower meet at an office and sign?  If I do this, my intention is that things are smooth and drama free for both sides - but of course I need to know that if something goes sideways my "First Position" isn't just a security blanket phrase...but rather, something enforceable and real. Thanks

I continue to want to do flips of my own, but finding investor friendly agents has been a bit challenging for me, and based on what I've learned over the months, I should be making triple the number of offers I've been making.  Anyhow I've not given up but in the meantime.....

At BP Con days ago - I briefly met a young man who was doing well with Flipping. I'm not perfect - but in my previous life I built 3 companies - highly competitive industry where I had 40+ full time employees, and health with a plethora of people with my point being, after 20+ years of that I'm usually good at sizing up people. Anyhow, within a few minutes listening to this fellow talk to his buddy, I knew he was legit, focused, sober, straight up so I joined the convo and told him that liquidity is no problem for me, it's just been a challenge getting the right agent, and other apparatus for flipping. He told me I should consider lending......that his private lenders do ok vis a vis ROI. I am interested. I should've had a sidebar with him but I figured to just marinade on it a bit.

Right now I'm taking 5.5% on short term treasuries but I think the risk premium is worth it for this.  Cursory research tells me the following:

*Get an attorney in the state I'd be lending in. Make sure the promissory note, deed of trust, etc truly protects me and the I have first position on the house.   HOPEFULLY - after the first deal, it's more of a cookie cutter thing and not huge legal expense on me.

Also, I'm wondering how to make it easy, smooth, and profitable for both me - AND the flipper.  The fellow I met suggested he's paying 10%.  OK, fine.     I'm curious if people here can advise me - -- is there a duration minimum?    My concern is.....if I lend $200k, for 10%-11%, great. BUT if the money is returned to me quickly --- heck the interest income barely covers the legal bill. 

I want to do some homework before approaching this flipper, or any others.  He seemed to value relationships, just like me. He seemed to like ease of doing business, just like me. Hence I want to have my thoughts in order.

*For private loans to a REPUTABLE Flipper:  Is 10% appropriate, or more? 

*Is it customary for the lender (me) to say -- look, I need some ROI so there's 6 month minimum duration on the loan, OR......in addition to the APR I'm charging, I should charge a reasonable origination fee.

I'd appreciate any comments or opinions . Suggestions and even insults are ok. 

Thanks!