All Forum Posts by: Clarence Watkins

@Sami Davis You made some good points. I have a 5 unit mixed-use building in the Chicago area. My property taxes went from $7,000 to $10,500 for 2018 taxes. My property insurance is going up from $3000 to $12,000 under new lender requirements and 100% replacement cost rules. I need to appeal my taxes and find a new lender that will accept co-insurance to keep my insurance low.

Is anyone else dealing with new replacement cost insurance requirements?

I have a commercial mixed use 5 unit building being refinanced, but the property insurance requirements are killing the deal. There is something about an 80% co-insurance that is forcing a replacement cost coverage of $1.2M instead of an otherwise $200K loan amount coverage. The difference in cost is $12,000 in premium compared to the otherwise $3,500. Does this make any sense to anyone?

Thanks John. I appreciate your generous answer. Now, I too can communicate with this knowledge and understanding. 

@John Gerwatosky What determines the class of neighborhoods? I’ve seen this a lot. F-class versus C-class. Is this just a guess or is there an authority on this?

@Brian Lepo Hi Brian, I have a commercial mixed use 5 unit building in the Chicago area. I’m currently refinancing with cash out. I’m being required to dramatically increase my coverages. Is this customary? Is there a marketplace for more reasonable insurance requirements?

@Chris Blank I feel you Chris. I too ask, what insurance company has the best rates for real estate investors? Insurance can take a big bite out of one’s cash flow. And then multiply that times the number of projects being held by the investor and it’s a lot. Can someone help?

@Nick Schoch Thanks Nick. You answered some of my questions too.

Tarik, I must have somehow missed the Hackensack broker. I'll look again, but the value of the property is about $300,000.

Thanks Tarik. What about a 5 year 5% prepayment penalty. Is that customary?

Thanks Tarik. What would be more reasonable?