All Forum Posts by: Will Barnard

My lender found an insurance company willing to write a policy on a NOO property. It is much harder to find, but not impossible as Red Rover pointed out.
Thanks Kip!

Actually, you can do a lease option in TX as long as an attorney draws up the contract. RE agents, etc. are prohibited from doing these deals in the state of TX. Check with your RE attorney on this subject. If you do not have one, I could recommend mine. I invest heavily in TX and have a great attorney there.

An alternative option is to sell via a wrap mortgage, keeping your current lien in place and selling the property to another buyer at a higher interest rate and a down payment. You keep the down and the spread on the interest.

Corey,
I prefer (in my personal situation) to use LLCs for both flips and holds, however, to answer your question, many states how specific laws and requirements regarding flips and therefore, you should consult an attorney in your state. Since you are from TX and I invest heavily there, I know that TX passed a law that states that you must use licensed contractors and subs and must provide applicable warranties. Check with your attorney on the exact law and rules to follow or you could expose yourself to liabilities. Having an LLC is just one more layer of protection for you, as is, Land trusts, and operating your business in a responsible way.

Gary,
By the way, your last post did not have the link show up for why to use PM.
Could you re-post? Thanks.

Gary,
My compliments to your wonderful and witty response to the usually negative Mike from Ohio. You illustrated exactly what many of us have been saying all along, me in particular, only to hear that there are "x" amount of hours in a week and more $ would be made from self managing.
I could not agree with you more and I think it is wise for all the others to take a close look at what you have stated/illustrated.

Clark,

Bruce Norris' son Aaron is a member here on BP. Shoot him a pm to ask where Bruce will be next. You can also ask Rosie Nieto who is a new member here on BP and owner of the Naked RE Investors Club in the OC and I believe, soon to be in LA as well.

Not so hasty Jon. If Vivian is able to sustain negative cash flow for a period of time and the investment is in an area that she expects to have great recovery/appreciation, she could make a speculation investment. In that case, it may be a great deal.

From a cash flow standpoint, as you stated, it is not a great deal.

Jason Wrote:
"All of the experts I have talked with say it's overkill"

You are not talking to experts if this is the advise you received. You can never be over-insured, only under-insured. As Gary stated, umbrella policies and additional coverages are very inexpensive, and when needed, you will be glad you had it.

If you do not act in a negligent manner, as in the example Gary mentioned, you can avoid those situations, however, negligent or not, responsible or not, I would rather have the protection of the insurance to fight the lawyers rather than my own money.

Moral of this story is to make sure you have proper and adequate (if not excess) insurance coverage, particularly when you have multiple properties (multiple possibilities of litigation).

You could pay off the bank in cash or get some quick financing to repay the original loan. If you have lots of equity, it would be a shame to let it go. Find a way or find a $ partner.

I agree, that the expenses are too low for a 6 unit multi with utilities paid by owner. You will have vacancies, PM fees, advertising, possible evictions, etc. You will also have repairs and maintenance as well as makereadies when tenants move. With all that said, the price you could get this unit at with owner financing makes it a great deal.