All Forum Posts by: Zach Bechard

I had a meeting with my Estate Planner/Asset Protection Lawyer last week. The subject of our rental properties came up and he suggested that I should get a liability policy for each of the rentals we own. He said it will protect us from being sued or liable for any accidents that would happen inside the property. He said the home insurance policy just covers the house from the walls out. Just wanted to hear some feedback and see if this is good practice as a landlord and rental property owner. What are you guys doing about this?

I am thinking of exit plans and options. If I get a property with a HML, do the renovations and then can't sell it for some reason, the investment strategy then turns to a buy and hold. I would be looking to refinance to get the HML or other investor out and obtain a new mortage based on the ARV and improved value.

I am just curious what other full time investors do in these situations without a paycheck to show income.

Hi BP Community!
As a newbie and future flipper, I have been researching and reading up on Hard Money Loans. The piece that I am missing is the process of how the payments work.

If I borrow $100,000 from a Hard Money Lender, at say 12%, and use the property as collateral. How does the re-payment work?

Do I then start from month 1 with interest only payments?
Are there monthly payments and interest from month 1?
Or do I pay back the entirety of the loan with the 12% interest when I sell the property?

Can you guys give me some insight on the standard procedures when using HML?

Thanks!

Is it possible to get a conventional loan without proof of income and good credit?

As a new investor it will be hard to show income, but I have good credit. Rather than using private lenders or Hard Money Loan, could I get a mortgage?

I was thinking that if I put up a large enough down payment, say 30%, that would put the bank in a great equity position. Then, if I buy and hold and show rental income to sustain the mortgage payments, would a lender see this as a low risk and lend?

Good stuff, Thanks Mehran Kamari. This should keep me busy for a while!

Thanks Tj Hines, This is all new to me, and I was shocked when I discovered this. I am glad I found it early, rather than getting caught in the middle of a deal like this without knowing.

I had the same idea.
How did you approach her about it? What did she say?

Let me know how it works out for you?

Completely understand Aaron. SoCal Market must be very competitive!

Today I read a great article written by BP Member @Rich Urban on his site.

http://southfloridainvestors.com/why-is-every-real-estate-wholesaler-pushing-eachothers-stuff/

The article discussed Wholesalers taking other Wholesalers' deals and marketing them at a higher price. Rich said he noticed it when he got 6 emails selling the same property for 6 different prices! He was on multiple buyers email lists.

Rich's conclusion posed the idea that there is only a handful of "REAL" Wholesalers in South Florida!

What are your thoughts? Is this an unethical scam or an innovative strategy?

Aaron Mazzrillo Great insight. Tell us how you pick the apples from the tree!
What are you doing that is different than everyone else?
How are you finding the houses to Wholesale and getting those leads?