Beware the East Hollywood Flood Zone

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Seriously, it exists, despite the fact that East Hollywood is really far from any bodies of water.

Because the Army Corps of Engineers created a flood zone around the intersection of Santa Monica and Hoover, banks will require that properties in the area carry flood insurance during the time the property is mortgaged.

The problem is that, due to the insane Biggert-Waters Flood Insurance Bill (which Congress thankfully toned down today!), you need to get an elevation certificate before you can get a reliable quote on flood insurance.

And, to get an elevation certificate, you need to get a survey, which is pretty expensive.

Fortunately, because this particular problem bit me in the ass on my last deal in the flood zone, I have a guy willing to do the surveys on a contingent basis, where you only pay a small portion of the fee upfront and the balance if/when you close on the deal.

Brokerage, it turns out, is mostly about coming up with creative ways to solve the niggling little problems that come up on every deal.

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