All Forum Posts by: Michael Lightwood

In speaking to someone who is starting with Flipping/Rehabbing homes. If someone were to seek a hard money lender to aid in the finance of purchasing a property and the cost of the rehab for the flip, How would someone get help with this and what might they need to secure the loan?

Micheal,

2 Votes

Omaha, Nebraska

I am see more and more that people are buying properties with Online Auction as compared to onsite auctions. I would like to ask what are some good places to look for Online Auctions? Thank you for your help.

Michael,

0 Votes

Omaha, Nebraska

Thank you Kevin Soblio. Still wrappin g my head around this lol.

0 Votes

Thank you Johm. I will look them up.

0 Votes

When having a LLC for operating a real estate company I am wondering who are the favorite Insurance Companies to use for insuring homes and insuring the business? On another note, how do you set up and build Credit for the LLC platform? Thank you for all your help in advance.

0 Votes

Lots of great information there. Thank you Ivan Oberon.

Quote from @Ivan Oberon:

Great question. There are a few issues to consider here, chief among them is probably how you separate what are considered "business" activities and liabilities from your personal liabilities and activities.

The IRS considers anything which generates income for you a Business activity. It is irrelevant whether you own the property in your personal name, an LLC, Corp or Trust, etc...

The vast majority of insurance people out there do not understand this because the majority of them are not active investors themselves and because of this, provide incorrect information and either inferior products and in many cases, based on my experience, the absolutely incorrect product altogether. This puts their clients and themselves at risk.

Coverage for your rental properties needs to be written on a commercial form, underwritten as a tenant occupied dwelling and at least $1,000,000 in liability. You want to look for the flexibility to not be subject to Co-Insurance requirements or minimum earned premiums and varying choices in deductibles and coverage forms. You also want to be able to switch coverage on the fly between a property being vacant, occupied or under renovation as sometimes you might experience a longer vacancy than expected during a turn or have to do a more major renovation after many years.

Also, all "personal" policies and "personal umbrella" policies have what is called a "Total Pollution Exclusion." Many commercial policy forms allow you to "buy back" coverage for at least one type of "pollutant" that is pertinent to landlords. This coverage will offer defense and claims settlement for alleged or actual injury caused by CO2 emissions from a heating or air conditioning source.

You can add a "personal umbrella" to cover your personal liability exposures of your home and auto, if your net worth justifies it, but you should keep any income producing assets separate from your personal liabilities.

Ivan

0 Votes

Does having current renters in the unit that you are planning to finance help you in getting financed? What are the Pro's and Con's?

0 Votes

Omaha, Nebraska

I know you have REITs, "Real Estate investment trusts," and others that deal with commercial properties, but are there other ways to invest or, without investment, make money in real estate? I heard some info commercial saying they were listing properties on websites for Air Bnb's and making money. Without getting involved in some money scam, I decided to come to the experts and ask for factual information. Thank you again for all you do. Biggerpockets.com is the greatest.

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