All Forum Posts by: Simon Stahl

Update: I called the lender and there is nothing I can do, except if I could find my own insurance coverage for this time. The insurance they buy for this time is fixed and I have no influence on deductibles or anything else. I'm glad that I only had a gap of a couple of weeks, otherwise it would have gotten expensive

Thanks everyone for the answers. Makes kind of sense that they want to cover their butt for any potential lawsuits. It's not a lot of money, it just bothers me that they can just do that. I'll try to get the deductibles up to at least save a buck or two

Hi there

First of all, I understand that a lender wants uninterrupted insurance coverage for any property they have a mortgage on. What baffles me is that they are trying to force sell me insurance for the past, when we already know that nothing has happened to the property during this time. Do i have any merit to complain or is there a way to get out of this? Sounds like free money for whoever gets it without any risk.

For context, my old insurance for this property did not renew the policy for reasons unrelated to me. The new insurance let me know last minute that they could not start the policy without a document that took me a while to get, so I ended up to be uninsured for about two weeks end of December and beginning of January. The new insurance is already active for about a month by now.

@Michael Margarella oh wow, this is already much more than what I am doing. I just buy the property with cash, add some of the expected rehab costs to the closing statement as prepayment (I either get a check for the contractor or it goes into an escrow account). Rehab and get a delayed financing loan, which is really just a normal mortgage that I can get after closing.

@Michael Plante you can always get a cash out for properties that you already own for more than 6 month. If it's less than that, you can get the delayed financing with a max property value of the purchase price

Usual seasoning requirement is 6 month, but if you buy with cash and then get the loan, you can use delayed financing during that time.

@Maria Miers I almost pulled the trigger with Great Jones. They sounded pretty good, although they do have a minimum payment per unit - I think it is $120. I would have been willing to pay that premium to get rid of the issues I had with my PM, but then decided to sell the property instead.

@Maria Miers if i remember right then it turned out that the unit was not fully finished and obviously no one is going to rent it that way. We finished it up and listed it on all channels. That worked and we found a tenant shortly after. I think the reason for the issue was some miscommunication with the PM and me not pushing hard enough for all information.

I've worked with Matt Tucker from Caliber and with Aaron Chapman from Security National before. Both should still be lending as far as I know and both do sub 100k loans. My guess is that 75% LTV will be the max you can get for an investment property though.

@Casey C. It still goes all well besides some small complaints like they could be more proactive or communicate better at times. Certainly good for the price.

@Rocky DeFalco Talk to Matt Tucker from Caliber Home Loans. I worked with him before and they used to do $25k min loan amount. Not sure if that has changed since the beginning of the pandemic. But tbh, with a $40k loan, the fees just become a pretty hight percentage so I would think twice if that is worth it or not.