Insurance Considerations For Apartment Buildings
Guys, it seems that most commercial investors (of apt buildings at least) are ok with high deductibles in order to obtain a reasonable insurance premium.
I am looking at a 5 unit apt building and have been shopping for policies. I have received a quote of $1300 but with a $10,000 deductible. With another company, a quote of $1900 with a $2000 deductible.
Is everyone in unison here in desiring higher deductibles? Is the logic that you will not file a claim unless there is a high level of damage such as fire?
Thanks again!
Thanks for the info. What insurance company do you have?
No problem with providing names of providers and websites in direct response to a question- but self promotion is not allowed. The test is, do you benefit from providing this information?
Chris
Thanks commercialking. I agree with your logic and I also recently read an article about insurance companies raising premiums for as little as 1 claim and even dropping some policyholders for submitting a claim.
I would most likely not submit a claim under 7-10K anyway.
Thanks studlee
check and see if a landlors association will do it for a fee?
I live in the dallas area.
What type of units would you be looking for? SFR? There are plenty of foreclosures here and I available contact to assist you in seeking properties that meet your criteria.
I operate a tenant finders service that provides pre-screened tenants to landlords and will only take compensation once we you have we have successfully provided you a tenancy. We can then refer you to reputable management companies in the vicinity.
Hello,
I am also interested in wholesale multi-unit properties, single family homes and buyer buildout packages. Can anyone help put me in touch with a builder or representative? Also interested in a property management company.
Thank you!
There are high LTV loans out there, but again its finding the property. But if you find a property that cash flows, I have a 97% commercial loan up to $1.5M. Youcant get better than 3% down.
Good luck..
How about sending me a ballon or noise maker?!?!
LOL!
Hello FLbob from a fellow Floridian. On the East side!
Every think about using your IRA? You can get a non-recourse loan and leverage that IRA. You can depreciate the leveraged portion. You will have to pay ubit tax but it is pretty small.
You just may be able to cashflow with the IRA. If it is a roth all rental income attributed to the ira or appreciation goes back to the ira tax free.
You can partner with others or other peoples iras.
It is just a different way of thinking. And gives you some more options if you have one.
Best of luck!