All Forum Posts by: Steve Babiak

 Don’t be surprised if it is double or even more.

There is another gotcha to watch for with builder’s risk, how the premium paid is considered earned. Premium will be paid in advance. Some companies will consider that entire premium earned right up front, and will not pro-rate and thus not give a refund for the tail end of the period after you cancel (once work is completed or because you changed insurers or you sold the property). You want your builder’s risk company to pro-rate the earning of the premium.

That illustrates the difference in PA between an upset tax sale and a judicial tax sale; with the upset tax sale, the liens and encumbrances remain in place. Since your lien was not divested by the upset tax sale, you still have all the rights you originally would have had as a lien holder. 

Had your parcel been through a judicial tax sale, you would then have to explore whether the original note owner had been given proper notice of that tax sale.

 Correction - you’ve already written a book, I have a copy ;)

I just got off of a Zoom meeting where the attorney presenting (Brad Dornish) emphasized that builder's risk coverage is a must for properties undergoing construction, for many good reasons.

Since you plan on first rehabbing this property, you should consider a builder’s risk policy first, and convert to a landlord policy once it is rented. Many companies do not offer builder’s risk, so using two companies is a reality for some.

And you might want to consider adding an umbrella policy once it is rented.

I used USLI for builder’s risk, and Erie for everything else.

@Bob E. - you now have to REALLY rehab that place ;)

 In the Philadelphia area, I suggest you try KitchenSearch - you can tell them I sent you.

Painting the ROOF?!?! LOL, no wonder it costs that much ;)

BTW - I am getting quotes for replacing a shingled roof on a 3700 sq ft house (roof size ~38 squares) where the quotes are coming in at $16K to $18K from the low price end; the high price roofers wanted $23K to $28K for that same roof. So unless that $22K roof is really big, that could be an excessive price ...

Confirmation that L&I stands for “Loony & Insane” ;)

I used 1031 Corp. Even if you don’t use them, their website has lots of good information for those looking to perform a 1031 exchange.