Information Needed On Insurance
My partner and I have just recently established our company GCB Properties LLC. My question to you is what type of insurance do we need to have in place prior to purchasing a 25+ apartment building, if any. Please let us, we are newbies to the commercial field and are extremely excited to get the ball rolling. Any information would be greatly appreciated!
Cobus Breytenbach
Co-Owner of GCB Properties LLC.
Your lender will have requirements for your insurance coverage.
Good Luck,
Robert
[addsig]
The lender requirements may meet their needs, but you really need to speak with an Agent/Agency versed in REI. Look to your local REIA-type groups for a referral. Other owners of commercial/multi-property may be good sources as well...
[addsig]
is cash flow, appreciation or both your goal?
Multiple properties diversify risk.
Any market you can get a deal in is a good one. That said I would say that Utah is a good place to invest for the long term. It has many options available and many facotrs to drive up price over the years.
In Salt Lake county there is limited space available and that scarcity is driving up prices. The mountains form natural barriers to the east and west.
St George is booming and expects a 500% growth over the next 10-15 years. It is in a short slump at the moment because of overbuild but should pull out in a year or two but this makes it a good time to buy at lower prices.
In addition to the natural wonders and features of Utah that attracts business and people here you have the most aggressive missionary church in the world that has been the fastest growing religion for decades.
This too spurs people to move to Utah in greater numbers.
But like I said anywhere you can buy with equity built in is a good market. I talke cash flow where I can find it. APpreciation is harder to find as when you do everyone else has too and the prices are already soaring.
[addsig]
My suggestion....stay in California.
why stay in CA? Very few properties w/ cash flow.
I have three homes in North Carolina.
Very little cash flow.
Very little appreciation.
Unresponsive property mgmt.
My biggest issue is that I have to manage the property manager.
I was promised big cash flow.
I had a duplex in NC...nothing but problems and lost cash.
I reported the selling agents office to the BBB and as a result they did not charge me commision to sell it.
Otherwise I wouldve lost alot more than I did.
I have a condo in Knoxville TN.
300.00 dollar negative...I was promised a cashflow.
I almost bought two fourplexes in Houston...I could actually hear the agent over the phone telling someone else that the units were not worth the asking price, yet he was telling me what a great deal they were. This was an agent from a local agency, about 15 miles from my home.
My last purchase was a condo in MS...in the post Katrina area.
The ONLY reason I bought this property was because I was told that the corporations that are down there rebuilding the area need to rent out furnished units, and they rent at 2200 per month, which would give me a 500 cash flow.
To make a LONG story short, I found out after the closing, that in actuality I will have a NEGATIVE of 450 per month.
I am currently seeking legal remedies for fraud.
Also, when you buy a new construction home, for example, you need to realize that everyone and his brother are also buying in these tracts, which means that you end up with a glut of new homes that are tenant occupied, which drops the demand for your rental, and makes it that much harder to sell.
If it sounds too good to be true, it probably is.
I also have four rental properties within 70 miles of my home, all managed by me, and they are doing well, and while the cashflow is minimal, the appreciation will always be there...if not now, in the near future.
I am not saying California is the best place to invest...I am saying that the best place to invest is in your own backyard, wherever that may be.
I would bet that if you were to take a poll of those investors who buy out of thier area, they would tell you that they have experienced some degree of disappointment or did not get what they thought they were getting.
The person selling the 28 units in Ca. could find good solid investments close to home that they could actually drive to if needed.
rglover548,
I have no intention of getting out of investing.
Maybe there are alot of people on this forum who are embarrassed to share thier mistakes.
I have made mistakes, and I am not ashamed to post them if they help others to avoid the same mistakes.
Perhaps when I reach your high level of investing skill I will cease to make those mistakes.
Until then, I will continue to be totally honest on this forum.
[ Edited by sirbeigealot on Date 03/13/2007 ]
sirbeigealot, I wasnt ribbing you, I was telling you my honest opinion. Ive made lots of mistakes also, I discuss some of them (like buy into another condominum), but you wont see me discussing my 7th money losing home (or condo) because of a dishonest realtor or bad board.
Thats why i though it was very difficult to do what you have done. Maybe next one you wont be so lucky and youll lose all your money to even think about another one.
Hope this might help you...
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Good Luck
Tammy