All Forum Posts by: Abigail Lipson

 Yes, for sure I agree with and would plan to do everything you said! Appreciate your input. 

Thank you for your input. I've overseen major construction projects and remodels but I would not be doing that in this case since I'd be out of state. It would be the PM doing all that. 

Thank you for the helpful perspective. I guess when something has become second nature, it's easy to forget how valuable it is!

My first thought was 50/50 but since I won't actually be doing all that much, I thought maybe it was too high. But maybe to him it will seem like I'm doing a lot since he's never been a real estate investor. 

My brother has indicated on multiple occasions an interest in us buying rental properties together - he would be financial equity, I would be sweat equity. I've shied away from this because I'm not sure I want to be in business with a family member but putting that aside for the moment, my question is what is a reasonable equity split. In this case, I've been a real estate investor and property manager for 18 years so I would be the one to find the properties. I'm currently buying properties for myself out of state and hiring property managers - I would plan to do the same here, so my role would not be particularly hard or intense. I would nonetheless be the contact person and primary decision maker with property management and my brother would be largely silent as per his preference. What do you think is a reasonable split to consider in this scenario? 

I have since asked insurance agents if they look up members of an LLC and, while they don't do that, they do require an individual's name. Just the LLC name won't do. So it doesn't appear the LLC will solve the problem.

Thanks for your input. I had contacted at least 6 different insurance agents so it wasn't the same insurance carrier, and one of them was a broker shopping it around. <sigh> 

Were your insurance claims within the last couple of years? I think insurance companies have become more risk averse as weather events increase. I know hail used to be considered a secondary peril event but has now become primary. 

Good info about the LLCs. Sounds like maybe getting a PO Box is the way to go so that the address isn't my own? 

I own rental properties in one city and two of them had insurance claims in the last 2 years due to hail and tree damage. I just purchased a rental in another state/city and am getting turned down for insurance due to those claims. The homes are owned in my name. An agent mentioned to me that I might have better luck if I formed an LLC on the new one because the claims in my name won't come up. Another agent mentioned that they may still look up the members of the LLC. Has anyone had experience with this issue and know a way to get a good insurance policy that doesn't cost an arm and a leg?

(Please no comments about whether or not my properties should be owned in LLCs, as that is not what this particular post is about.) Thanks!

Quote from @Paul Azad:

Sorry. Please forgive any stupid questions, but why are you wanting to invest outside of Austin? where you already live, have experience, have contacts within the real estate industry, and likely have a large informational advantage over outside investors who are investing in Austin but don't live in Austin. What advantage do you think you'll get by investing in Tulsa? Or Birmingham or San Antonio? Or is it just that profit spreads are better there? Perhaps the question to ask is not where to invest, but rather when to invest. And maybe at this late part of the business and real estate cycle, perhaps it's not a great time to invest anywhere. Austin has been a high growth city and likely is six to 12 months ahead in the business cycle as many smaller cities.

Of those Three, San Antonio provides you the same legal backdrop (Tx) and also geographical access (same day drive) and accelerating immigrant population growth (GDP growth requires much more immigration both red/blue agree on this in private)

I'd be happy to stay in Austin except I want to pay cash and I don't have enough cash to buy in Austin. Hence why I'm looking to invest elsewhere. I agree with what you say about San Antonio and I may be leaning towards it, but I'm also getting the sense that I may be able to get more house in a better area in, say, Tulsa.  

Thanks, Taz. This was helpful. I'm planning to pay cash so the markets I've identified are ones with lower price points that allow this based on the cash I have. Average/median rents seem to vary depending on which site I look at, lol - perhaps you know reliable sites to use for this?