All Forum Posts by: Michael Pepe

I am a motivated investor planning to buy at least 2 investment properties in 2018.  I am looking for a realtor to help me find properties. I am on the CT Shoreline, and looking for properties in the New Haven or Middlesex County

Looking to build a long-term partnership.

Indemnity and insurance are similar but different animals. They often overlap, but the analysis must be done separately. An indemnity obligation exists regardless of whether you have insurance to pay for it. Insurance may cover certain indemnity obligations, but not always. So it is important to review any indemnity obligations with your attorney and insurance broker before you agree to them.

The first section is likely designed to deal with third party liability (i.e. if someone slips and falls on the property and sues both the Owner and PM). This section states that requires the Owner to pay the defense fees and any settlement or judgment (regardless of whether the Owner's insurance covers it) except in the case of willful misconduct or gross negligence. This standard seems high, since the PM may have some negligence (i.e. failure to maintain walkways, etc.) that doesn't rise to the level of gross negligence.  As an Owner, you would expect the PM to be responsible for its own negligence.  As others have said, this provision is even broader because it also makes the Owner responsible for injuries to the PM's employees.

You should have an experienced attorney review in conjunction with your insurance policy to determine the real scope of additional risk you are taking, and what portion, if any, might be uninsured.

@David, 

I'm an insurance coverage attorney. I'm happy to take a look at the policy language. Since it was occupied at the time of the fire, and you can't fill it until the repairs are complete, you are suffering a loss of rental income. While there's some speculation involved in calculating the amount because the lease was ending, you may be able to argue based on your vacancy time exceeding expected (historic or pro forma) vacancy rates.

Some builders risk policies require certain protective safeguards to be in place during construction as a condition of the insurance (i.e. lighting, fences, security, etc.) Make sure to talk to your broker about this and other particularities of the policy.

@Dan Wallace @Max Gradowitz, @Rob Beardsley Thanks for the replies. I checked the land records, and the property is zoned commercial, so shouldn't be a problem with a conversion in the future. Thanks for the heads up looking for commercial lending. Looks like I have some more homework to do. 

Are property taxes calculated any differently?

Unique property

Duplex (both 2BR) on a corner lot in upscale neighborhood with frontage on main commercial road in town. The property includes two outbuildings. One has a popular pizza restaurant in a long term lease. The third  building has a take out restaurant (currently on 1 year lease) and a 2BR apartment attached. So there is a total of 5 units (the two family house, apartment, and 2 businesses).

When leased up it should cash flow slightly, but potential big upside for appreciation based on location.

The duplex is vacant and could be converted to commercial space (lawyer, medical, insurance, etc.)

How would you analyze? Residential or commercial analysis? How would a bank look at for loan purposes?

@Jasmine Batt I'm an insurance coverage attorney. Happy to take a look at your policy. 

Builders Risk and property insurance are first party coverages. They cover losses to your property as opposed to a liability policy that covers your liability for damage to someone else's property. Most property policies exclude damage during construction, so you need to fill the gap by either a builders risk endorsement, or getting a separate builders risk policy

Hi. I'm a lawyer in CT, and I'm thinking about making my first real estate investment. 

I've been listening to the Bigger Pockets podcast for a few weeks, and thought I'd see what this forum is all about.

I'd like to meet and learn from other members in the CT area.

Michael

In my state you would need to motion the court if you needed to have the lis pendens discharged. Depending on the local law, the court records showing the case was resolved may be enough to show a title company that the lis pendens is no longer of any effect. In any case, you should consult a lawyer experienced in CA property law.