3 Month Flip And Insurance
If i get a property sub 2 and deed it to the trust with intentions of putting 5-6 k in rehab and sell it within 3 months, does any one think I should get insurance? or just try selling fast..its for a short period of time only.........
Its not because of the cost of the insurance,its mostly because every one has different opinions on insurance issues.how do you do it right without the lender finding out?My concern is to get the insurance the right way....and of course this means that the bank wont be notified..
one way is to keep sellers ins. in force and get another policy for your needs. this is one way that it is commonly done. the other is go the "trust" route......km
im currently in the same position only mine is a rehabb were i will be putting a substantial amount of cash into and then flipping within six months. im going to take title in trust, but dont know if any insurance co.s will issue insurance in the name of a trust?
Thanx,i will look at the site
the reason you keep the sellers policy is so "not " to alert the bank that a change has occured to the ownership. if you change ins. the bank will be sent a copy showing that the benifical party has changed thus possible exercising the "due on sell clause". if you keep the ins. in the previous owners name and get additional ins. to cover for yourself the bank will not know. small price to pay for being able to "sub to" or as i have said make a "trust"......kenmax
if you do a sub to you get the deed. if you have the deed you are the owner only the mortgage stays in the pre. owners name, with the deed i am the owner and can be insured if you ins. the property in your name you are insured. you get a seperate policy than the previous owners but you keep his in force so not to cause a "due on sell". you pay both ins. as i have said a small price to pay.....km
there will be no battle because you are the owner and you have a policy to cover your interest in the deed the other policy is "invalid" because the previous owner no longer owns the prop.. its only use is a so not to put up a red flag for the due on sale clause not used for the intent of coverage......check with other "sub to" investors they do it everyday with no problems........km
you should talk to john $cash$ locke, which i am one of his students , john has done hundreds and the students on his site have done hundreds more with no problems, and i have done a few. i am not trying to "shoot you down" just inform you. you may not feel comfortable with the method but go to the "expert" in the field, john $cash$ locke before you make a opinion without all the facts. for the sake of the other people on the site......kenmax
[ Edited by kenmax on Date 03/03/2005 ]
I have had insurance claims doing subject to deals as many of my students have, without incident.
"Rhetorical Answers" to insurance questions by someone who has never been there and done that should be considered as just that.
Just because someone is an insurance salesman does not mean the understand the creative side of investing as many of the insurance people I know do and find no problem with the way we subject to investors do business.
John $Cash$ Locke
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norrist,
You right a pretty good "ad" without breaking the rules also.
I find no falult with that.
John $Cash$ Locke
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Tim,
It was.
John $Cash$ Locke
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Thanks. Have a great weekend!
think again! ..........km