All Forum Posts by: Mike Flatow

I entered a contract as renter several years ago but didn't go through with it when it was all said and done.  It was a simple contract that the seller downloaded and it was very basic.  There was no deposit required by me so I thought it was a good deal because I had nothing to lose.   Not sure if I would consider that again or not but as a seller it may give several advantages.  

@Sebastian Wernicke  that's a pretty well thought out plan.  Times like this are nerve wracking for sure.   My thought would be if it is insurable, do you think the amount you have budgeted for the "fix" will increase post storm.  Would you need to factor in possible increased costs and timetable in your plan.  I imagine the demand for repairs and construction would be pretty high.

You're right @Jared Townsend.  I've always had high hopes but very low expectations for insurance providers.  I was in Title for 20 years in Orlando.  In my experience they never make you whole no matter what the claim is. The policy holders are always hurt in some way or another.  Some of the richest people I know are in the insurance game and I imagine that some sort of insurance reform is due.  It seems like the storms are getting more frequent and more intense so something has to give.  

@Dana Walker when I was in Title during those 3 hurricanes that hit Florida back in 2006 or 2007 (I cant remember) , I did a closing about 3 or 4 days before they shut down closings. It was a house right on Cocoa beach and the borrower was nervous about the storm but we closed and I turned in the paperwork and closed my part of the file. About a month later I went to the same house and did another loan. The home had a lot of damage . I cannot recall the specifics of the circumstances but I can't believe the original loan went through in time. It could be the case that it was a HELOC and the borrower was doing some sort of draw but they wouldn't send a closer out to the property for that so I think it was a completely new transaction.

@Wayne Brooks you are correct. It is the insurance companies that shut down new policies before storms (not fair in my opinion) .  

BA in Economics. It may or may not have helped lol.

way to go. Loved reading about your first flip.

never heard of it but it's a great idea especially in drought areas where water is expensive.

totally agree with @Shaun Weekes on this.  I'm really wondering how anyone justifies any upfront fees these days. There is not really any legitimate work in determining the quality of the borrower or the property to justify anything along what this broker is asking for. 

I would pay enough debt down in order to raise your credit score so you can qualify for the best financing options. Then I might look to decide whether to jump into an investment or pay off more debt. The debt does nothing for you but if some of it is cheap debt you may want to hold onto that and not let it stand in your way. Get rid of the high interested stuff so you can put your money to work for you. Don't be in a rush to jump into REI for cashflow because things don't always work out was wonderful as we plan them. Make sure you are on solid ground before you take a stab.

I would tell her that you are getting $500 a month below market rent right now and you'd like your investment to be doing better for you. I would tell her straight away that you are seeking $2200 a month but would accept $2000 a month if they really needed to stay. That way it sounds like you are doing them the favor and taking a loss.  Just my 2 cents but I know personal relationships can be tricky.