All Forum Posts by: Randi Plevy

One of the problems with insurance is that you can not predict the nature of everything someone may sue you for.  One of my client's is being sued creatively by an adjoining retail condo for alleged illegal or negligent installation of plumbing.  The insurance has already sent them the "reservation of rights" letter, which means it will defend the insured while reserving its right to jettison them later.  

I'm not offended by what you stated, primarily because I advocate for buying insurance and think you're a fool if you don't. And by the way, if you have no personal assets to protect, then by all means own your property in your own name. But I hope for your sake, and that of your family, that one day you will have something to protect, and for that, I highly recommend forming an LLC.

As an attorney, I agree with the posters who say form an LLC for any investment. It doesn't matter if you have a partner or not. If you (or you with a spouse) have any personal assets, you should form an LLC. It's not an either/or proposition. You need an LLC and you need insurance. Boots and suspenders.

Boaz: if the lien is not paid off by the debtor, the property will eventually be sold at auction in the courthouse and you will have lots of competition for the property.  If you have never been to one of those auctions I highly recommend it for the education value along with the possibility that you might just get lucky and be the high bidder.  See below from the Bronx County Supreme Court website:

Judicial foreclosure auctions are held in Bronx Supreme Court on Mondays at 2:00 PM in Room 600 at the Bronx County Courthouse.

These auctions apply to the sale of real property. They do not include the sale of co-operative apartments.

The Court does not provide lists of properties up for sale.

Notices of Sale on foreclosed properties shall be served on the Ex-Parte Office at least ten (10) days prior to the scheduled date.

As long as you have a solid contract (sublease agreement) you will be successful in evicting, and as you say, it will be within 3-6 months depending on how much of a player this tenant is.  

Your final eviction judgment will include a monetary judgment which you can then attempt to enforce.  

Andy,

It sounds like a good deal, as two family houses in the Bronx are currently selling for $450,000-$550,000 right now.  You didn't mention the condition of the property, but I'm assuming it is average.  

It is standard to put down between a 5-10% on any sale with FHA having the most strict guidelines. Speak with your mortgage broker about the benefits and challenges of FHA financing. For the privilege of putting down 3.5%, you will be paying a form of insurance every month to FHA that you would not be paying to a conventional lender. Those extra costs add up and some investors determine that it's not worth it in the long run.

Best of luck!

You need a new attorney who understands that every day a Seller doesn't close it costs that Seller money.  Fire this clown, hire an investor friendly attorney, tell your new attorney to determine whether the Buyer has a loan commitment or not.  Your contract very likely requires the Buyer to get a commitment within a certain number of days from contract signing.  If the Buyer has not, ask your attorney to cancel the contract in writing.  Then have your attorney call the Buyer's attorney and tell him if he ever gets his commitment, and the house is still available, you will be willing to enter into a Time of the Essence contract with him to close within 30 days.  If he doesn't close, he loses his deposit.  

Instead of going through the underwriter directly, I recommend using an abstract company that provides personal service. The one I use is Millennium Abstract in Floral Park. Their owner is an attorney named Ronnie Simhone. He knows everything and is an incredible resource.

Hi Graham. My company does HML. Feel free to contact me to discuss further. [email protected]

I can not urge you strongly enough to negotiate the delivery of the property vacant. Depending on the county and the tenant, it could take anywhere from three months to two years to evict.

Many of the "rules" are what we attorneys call "laws." Check out the General Obligations Law Section 7 for some salient pointers.