Posted by Tim (CT) on July 02, 2002 at 07:38:09:
I finally got an attorney to just “shut up” and give me a title policy against this property!! My wife (who does most of my running around while I’m at work) recorded the deed last Friday and is going down to pick up the title policy at the attorney’s office today. I couldn’t get the sellers insurance company to change the policy to put the “Sally Seller Trust” on as an additional insured. So, at this point, I’ve got my insurance agent getting me a landlord policy where I’m just naming the Trust as the loss payee. Unfortunately, I’ll have to pay on two policies, but I’m still going to look around. If I can find a company that will give me a landlord policy where the lender is the loss payee the trust name is the additional insured, then I’ll try and switch to one policy. I don’t know if this can happen at all.
But, everything looks good. I’m still a little nervous because I don’t know what the future is going to bring on this property. It’s that fear of not knowing whether your paperwork is up-to-snuff and in-line. I did the best I could at getting everything “Connecticut Ready”. Had attorneys look at it (3 of them). All of them said they didn’t like the transaction. I told them, ‘I didn’t ask you whether you liked it or not. I asked you whether it fit the Connecticut laws’.
This is a funny situation also with the seller and her friend. The seller apparently got into this 2-family home with her friend. The friend has been stiffing her since day one for the rent. The seller lives on the first and the friend lives on the 2nd. But, the only person that was on the deed was the seller. So, I never spoke with the friend. Didn’t need to. So, after I recorded the deed, I called the friend to tell her that I was now the new owner of the property. She said, ‘You can’t own this, I own it’! I said, ‘Where’s your paperwork that shows you as the owner’. There was silence on the other end of the phone for about 30 seconds. I said, ‘Are you still there???’ She said, ‘ya, I’m here. I guess my friend (sally seller) screwed me on this one.’ I said, ‘be that as it may, you own me $575 for rent for July 1!!’ Then she said, ‘This place isn’t worth more than $500!’ I said, ‘Then I guess you’ll be moving!!’ (LOL) The whole conversation was actually pretty funny.
Thanks for the advice on this one Phil. This should get me about $500/mo positive cash flow. One more step to my financial freedom!!