All Forum Posts by: Tom Kern

Jennifer, glad that worked out for you.  Kristin is on top of her game and does a great job.  Best of luck to you. 

Jennifer, I am a hard money lender and know a lot about insurance. Call the insurance agent that most of my clients use. Call Kristin Morrison with Dominion Insurance in VA Beach at [REMOVED]. Tell her Tom Kern referred you. Kristin writes builders risk and liability insurance with Erie Insurance which is one of the best policies in the business for rehabbers. It is a commercial lines policy as opposed to the personal lines policy which most agents sell.....that is why you have not been able to obtain insurance with those insurance agents/companies.

Bryan, great story!  It was nice knowing you in the short time you and Lana were in the Richmond area.  Best of luck to the both of you with your real estate endeavors. 

Jason, I am a hard money lender in Virginia. I am quite familiar with most of the insurance policies for fix and flip deals. By far the best or most comprehensive coverage at the lowest cost is a commercial lines policy issued by Erie Insurance ( Erie is a superior policy to Zurich, USLI, American Modern Insurance Group, Llyod's of London, and all of the captive insurance policies). The Erie policy has both commercial general liability and builders risk coverage. The policy covers all of the risks that a fix an flipper is subject to, covers a 12 month period and costs anywhere from $500 to $600 per year for a $200,000 ARV home. Any unused portion of the premium (unearned premium) is refunded to the owner of the policy. Look up local insurance brokerage firms to see if they can sell this policy to you. Captive insurance agents such as State Farm, Nationwide and others will sell you their own product and that will likely sell a personal lines policy which is not what you want. Best of luck to you.

Brooks is correct in that a LLC with more than one member is simply a "pass-through" organization where end of year profits or losses pass through to your personal tax return. There are different pass through entities that can be used to report the business activities of the entity. Typically most LLCs file as a partnership (reported on form 1065) but some file as a S Corp (reported on form 1120S). For each type of tax return each partner's share of profits are reported on a K-1. For a throrough explanation of LLC tax reporting options see this link from the IRS at:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/LLC-Filing-as-a-Corporation-or-Partnership

Churchill is a hot area in Richmond VA and I have made a lot of hard money loans in that area. USA Today names Churchill one of the 10 up and coming neighborhoods around the USA. See article at:

http://www.usatoday.com/story/experience/america/best-of-lists/2014/05/07/10-up-and-coming-neighborhoods-explore-this-summer/8814935/

Matthew, my name is Tom Kern, owner of Richmond Rehab Funding. I can help you. I have worked with several Fortune Builders real estate investors in your area. Call me at C: 804-304-1228.

Economics 101 applies to pricing of hard money............always a function of supply of money and demand for money in a market.

Michael, my name is Tom Kern and I am a hard money lender (HML) in Virginia. HML's provide pre approval letters and proof of funds statements to Real Estate Investors (REI) so they can make offers since everyone knows that without a pre approval letter and proof of funds statement the Seller, Seller's listing agent and/or Asset Manager will not take the offer seriously. The HML is not obligated to make the loan until the HML issues a loan commitment letter to the REI. The pre approval letter and proof of funds statement merely allow the REI to make offers that will be taken seriously so that the REI can be in the game.

Hey Autumn, welcome to BP! You can learn a lot from spending time on BP. It is one of the best resources out there.

There are two very active real estate investment groups in the Richmond area: Richmond REIA and Richmond RING. You can join both through meetup.com. This Thursday, Dec 6 Richmond REIA has its annual Christmas Party and on Thursday, Dec 13 Richmond REIA has its annual Christmas Party. Come on out and meet fellow real estate investment enthusiasts!