All Forum Posts by: Spencer Lewis

Hello BP!

My understanding is that you need permits for specialty projects (electrical, HVAC, plumbing, etc.) and that it is common for the sub-contractor to pull permits for the work they perform related to those tasks. However, should the GC pull a permit for general scope of work rehab items (painting, new cabinets, etc.)? Does the General Contractor avoid liability by not pulling and only having sub's pull project specific permits? We have a rehab in Orlando and want to make sure that if an injury or other type of claim occurs the GC can't just walk away without being held responsible (using his insurance). Any insights in this regard would be helpful. 

Thanks,

Spencer

@Aaron K. thanks for the advice. Do you know much about how the umbrella policy works? For example, if I have two business partners is it on a personal asset protection level - or can we get an umbrella policy specific to the rental property? Much of what I see online lays out specific minimum limits for your basic coverage on auto insurance, etc. to qualify for the umbrella policy. Will insurance companies underwrite an umbrella policy for liabilities that occur at a specific property or will they only inure you at a all-inclusive level.  Thanks for the help. 

@Aaron K.

@Katie L. thank you for the resources! Tough to swallow at $800 in fees without the scale and cash-flow to justify the expense. Seems like the best option is get a good umbrella policy and built out the business, then down the road look to deed the properties into a liability protection entity.  Thank you again. 

Hello! My name is Spencer and hoping for some insight on the best way to set up an LLC when investing in Florida, while living in California. What is the process? How do I best protect my personal assets while minimizing set up/annual costs associated with the LLC? Thank you!

Hi! My name is Spencer and we are exploring options to protect our personal assets in a business partnership. We have explored the option of purchasing directly into an LLC and, as expected, rates are horrible from these specialty lenders (8%+ w/ personal guarantees). We were told one option would be to buy the house under your own name and deed to the LLC entity. I understand the due on sale clause and that technically the bank could call you and ask for repayment on the mortgage. Do banks actually follow through on this? Or since your mortgage was probably sold off to a larger portfolio, they don't take the time to call you on it.

Secondly, if the bank issues a mortgage to the LLC entity, will I lose my First Time Home Buyer benefits? It is my understanding the mortgage will still flow through to your credit report, etc. What are the benefits (lower down payment, tax benefits, etc.) and is there a point where the benefits out way purchasing a rental property (i.e. purchasing $100K rental now when I might purchase an $800K home for myself in 5 years).

Any insight on above would be very much appreciated!

Thanks!