All Forum Posts by: Bobby Beard

Congrats and good luck!

Run from any property right now needing flood insurance. Give it another 6 months to a year and watch the BW12 laws.

Originally posted by @A J Marks:

Regarding the 50% rule...

Is it possible to purchase something that is a single story or otherwise smaller, and build essentially above it (e.g. new stilts placed around the perimeter of the structure) or to the side of it, but without touching the original structure.

Or do you have to completely demolish the existing building?

You can raise the structure. its not as much money as you would think.. you could also wait till it floods the first time and use the extra coverage called ECC to pay for the raising... but that would be the long way around..

Originally posted by @John Semanchuk:

This is news worth watching for anyone with property in a flood zone. It looks like the Biggert-Waters act which was starting to create skyrocketing flood insurance rates might well be scaled back considerably.

http://www.insurancejournal.com/news/national/2014/03/04/322194.htm

I was in a flood cert class in florida last week, they were talking about BW12 and its impacts. Its HORRIBLE!!! However florida is fighting it, they are pushing laws to do away with BW12 or leaving the nfip program and let the other insurance comapnies start writing flood policies again. the next month or two will be interesting...

now.. BW12 will only apply to anybody buying pre-FIRM homes after june 2012. anybody that has active policy on a pre-Firm home and don't let coverage lapse it won't matter until they go to sell..

case study we looked at.. joe blow had a pre-FIRM home for 20 years, paid 1230.00 a year, sold to john doe, johns policy needs a elevation cert, finds out house is -4 BFE. his policy is now 11400.00 a year. his only option is to raise the house above BFE. once above BFE will drop back to 1230.00 a year.

takes pre-Firm to post-FIRM basically and charges rates on full risk!

i have a rental i bought last year, policy was 348.00, time for renewal it went to 1400.00. ordered a EC, was told EC would be 1200.00. when they were done with EC the surveyor told me he had been covered up with EC's request and had dropped price to 500.00... and i live in a smallllll town in tn.. if he is covered up then this is getting bigger than i thought.

Originally posted by @Ryan Watson:

They seem to be out of control with this "AE" designation.

Could someone clarify for me what it means for houses in the "AE" Shaded floodway zones? If they burn down does this mean they will not issue permits to rebuild?

Also the other AE Shaded areas, the ones not shaded as "floodway zones", is that not as serious but still likely?

AE basically means "wave action"

I will have exact details tomorrow. Just looking for a off the cuff thought.

Know a lady that has 2 duplexes for sale in a small town that are both in great shape. She is asking 250k for both with owner terms. They are 2/1's and all rented with some tenants over 5 years. All are long term. She only charges 500.00 a month each. Taxes are low and insurance will be low. I'm thinking that's a little high. Would be ok if I could raise the rents. At 250k what would you think each door should bring? There is room to neg.

Originally posted by @Roman Pak:

@Bobby Beard I know exactly what you mean. I haven't done any real estate deals yet, and I've found that I'm looking at every purchase as if it's money being tossed in the trash.

I just had to buy a car, to replace a brand new car that was totaled. :( and ended up buying a certified used one, because I couldn't bring myself to spend the extra $6K on a new one.

It really is about changing the way we look at things. We are raised today to look at debt as a good thing and a nessasary evil. It's not true. Change the way we think and money will come.

I reinvest all profits at this point. However in the long run all profits will be paid to me. So later yes but not now. :-)

Noticed auction.com has "Sachs deals" only but when you win they ask if your getting financing or have the cash.