All Forum Posts by: Bob Floss II

@Tracie Staine You need a real estate attorney. Title companies in Illinois work with the real estate attorneys to clear title and get deals closed. It also sounds like you have some legal work to clear up title and would need an attorney anyway.

Thanks for the mention @Brie Schmidt. You received some good guidance here from other investors on the costs involved to legalize a basement unit. Most never get past the estimate from the architect. Even duplexing down the first floor unit can be pricey as it involves making structural changes. If you are prepared for the costs involved and the modifications needed to the property to make the basement unit conform, the pay off of creating an extra rent producing unit is huge. 

@Ben Colabella Anyone advertising 5% on a hard money fix and flip loan is a scam. Same goes for buying a large insurance policy with a ridiculous premium. If you have a good relationship with someone, you can get a 9% loan, if not it can range from 10% to 18% and points can be in play. 

@Chris Laino The short answer is, tell your agent exactly what you are doing with the property so they can get you the right policy. 

A regular insurance policy is not going to cover a lot of the risk of a rehab. For example, when you have flooring, tile, cabinets delivered to the house, they are personal property. As long as they remain uninstalled in the property, they remain personal property. If it gets stolen, the regular policy you purchased may not cover any of it. 

@Andrew Hodgson I’ll say up front, I know nothing about Washington laws but I wanted to address your wholesale concern. 

In my opinion, some wholesalers have been operating a little fast and sloppy with their business model. When you get a property, you should be putting an option contract on the property and disclosing that you’ll assign it. The issue is some operators want to make it look like they are buying the house and use a normal purchase contract. Even if you put ‘or assigns’ as the purchaser or have an addendum, the homeowner believes you are buying the property. Some agencies and lawmakers feel this is deceptive business practice. They feel by signing a purchase agreement with no intention to purchase is fraudulent.

All depends on the lawsuit.

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@Account Closed House hack a 2-4 unit property. 

@Kitty Lee Where are you located? The areas you mentioned all have great potential but also contain areas of overwhelming risk. You need to assemble a team to give you the information you need to make informed decisions. One block can have great potential and the next block could be a disaster. 

@Chris Castillo House hack if you can, it’s a great way to start.