All Forum Posts by: Aaron Porter

It may also be a good idea to look into funded Buy-Sell agreements for the partnership agreements that you have.

@Sam Booth I have clients that are paying anywhere between $500 and $10,000 annually for insuring one of their SFR. There are many many factors that go into the rate that you pay. not just about the home but the insurance company also looks at you the insured. Age of home, condition, style, construction type, cost to rebuild, flooring, roof age condition and material, siding, windows, HVAC system, plumbing, electrical, landscaping, driveways, and on and on. Carriers also base insurance cost on location, distance from fire hydrant, and fire station, police station.

The best thing for you to do is to contact multiple insurance agents, both independent and captive and see what their rates are.  

But remember the cost isn't the only factor you should consider. making sure that your coverage makes you whole incase of disaster or a liability claim is way more important in my mind than saving you a couple hundred dollars/year.

@Will Chitwood The way that our company does this is to setup the insurance policies in the name of the client personally then add LLC's and Land Trusts as additional insured. The way it has been explained to me and the way that I understand it is that insurance policies are not public records and you can't link a real estate investors properties together by multiple insurance policies in the same way that you could go to the county recorders offices and look up property ownership. The best practice is to make sure that you are carrying insurance coverage that will cover you off for what would be your worst case scenario.

Don't cheap out on property coverage as that is what makes you whole in case of the property getting wrecked and don't cheap out on liability coverage as that is what is going to cover you in case you get sued by a tenant or guest in the case of a vacation rental.  For Liability the best way if you have multiple properties is for standardized liability limits of 250K-350K depending on which umbrella coverage you go with.  Then adding an umbrella policy to include your properties and bring your liability coverage to much higher limits like $1-20 Million.  

(Johnny Depp/Amber Heard lawsuit settlement and legal team was paid for by Amber's homeowners and umbrella insurance) 

Having your ownership structure properly set up isolates each property from each other making it so that if you get sued over 1 property the worst that can happen is losing the 1 property.  Check out this BP blog Royal Legal Solutions and Scott Smith and his team give out tons of free education on best practices.    https://www.biggerpockets.com/blog/contributors/scottsmith-2

If you have insurance and you weren't negligent to the point where your claim gets denied then your insurance should pay out to cover the loss without having to fight legal court battles with lawyers coming after all your assets. 

Quote from @Todd Goedeke:

@Aaron Porter I know of no employer that lets you move a 401k to another custodian while employed with that employer.

it is up to your employer for current 401K  accounts whether or not you are allowed to move the retirement account.  The practice is known as "In-Service Rollover" 
If your 401K is with a previous employer it can be very beneficial for you to move out of the old account into something self directed. (I am not a financial advisor) just a lowly semi-knowledgeable insurance agent who does a lot of retirement and tax planning)

For the Airbnb that I just set up last week in Southern Utah. (every jurisdiction is different, check with your city and or fire dept.)  But we are required to have smoke and CO2 detectors in every room, a fire extinguisher within 75' of all points in the home, and an escape plan on the wall in every room.  (if the home is set up to hold more than 10 people the home also has to have a fire suppression system (fire sprinklers)

Quote from @Mike S.:

Quote from @Aaron Porter:

@Nicole Heasley Beitenman  There are some 401K accounts that allow you to borrow more than that.  I don't  know anything more than that about them but I have a few clients talk about them.  

It may be worth doing some investigating and maybe moving your current 401k to somewhere that allows you more access?

To my knowledge the $50k or 50% of the value, and 5 year payback is an IRS rule;
However there are exceptions that let you borrow up to $100k or 50% in certain circumstances: first home purchase or special hardship condition. During COVID a special rule let withdraw $100k without penalty for 3 years.

 Oh man I spoke way too soon and totally screwed that up... I mixed up 401K with brokerage accounts

@Account Closed  I don't know of any CV permanent life insurance companies that will sell direct to consumer.  Right now we are using 5 or  different companies and it entirely depends on what the client wants, needs, and what their long term goals are because everyone's policies are just a little bit different.  

We only place policies with companies that are A+ rated (better track record, easier to work with, have been around for a long time, proven in the industry)  A.M. Best is the 3rd party rating company that gives the "scores" for insurance carriers.

It is best to find a insurance agent who is well versed and has a track record of setting up successful policies.  my mentor says 90% of agents shouldn't go anywhere near a Cash Value strategy because it is easy to screw it up and then the client ends up having issues.  

@Sarp Ka  I refer most of our Florida business to Amanda Soileau.  She has done a pretty good job helping out whoever I have sent over.  

I used to own a property in southern Alberta.  A couple of times the property was booked to use as a venue.  2 times for wedding and receptions, 2 or 3 times for family reunions.  We definitely up-charged and it was quite substantial.  

We also worked with our insurance agent to make sure that we had event coverage during the bookings.  If something gets broken or there is an accident on the property during such an event and you don't have the "event coverage"  it is extremely likely that your insurance carrier will deny coverage.  

@Nicole Heasley Beitenman  There are some 401K accounts that allow you to borrow more than that.  I don't  know anything more than that about them but I have a few clients talk about them.  

It may be worth doing some investigating and maybe moving your current 401k to somewhere that allows you more access?