All Forum Posts by: Daniel Preston

Hi everyone,

Looking for an accountant that is familiar with start-up real estate companies investing out of state.

I can't make it to the next REI Group in Warwick, so suggestions welcome. Need before last weekend of September.

Thanks,

Dan

Thank you both for your reply. And yes Phil, I have read the Millionaire Real Estate Investor and agree with the niche focus and strategy. Just trying to see what others have done in similar situations. Anyone else?

Looking for anyone who can relate to the following:

I'm in an expensive local market (lot of capital needed for starting up), which is also ranked as one of the worst states in the country on number of metrics. Yes, poor little Rhode Island. Of which, I have little faith in it's future. However, I'm looking for an active investment strategy that ISN'T necessarily locally dependent.

So far I've listened to podcasts 1-80ish and read the blogs daily, yet am still lost. I jump from flipping vacant land (@Seth Williams), to tax liens (@Ankit Duggal), to mobile homes (@John Fredo) and everything in between that isn't too local-market dependent.  And I just can't make up my mind!

In a perfect world, I'd move to a state that would allow me to do some BRRRR's, as the strategy is interesting and fits my personality and skill set. However, my local market doesn't really support that strategy without significant capital, and even then I don't have much faith in the state to begin with. Problem is, I can't move due to family, so I'm stuck here.

Most would just simply suggest house hacking (hard with a 6-month old) or turnkey.  But I think turnkey is too hands off for me with marginal returns.

I'm sure there are others who have been in a similar situation before, and I'm interested in hearing what approach you took.  I'm sure there's a simple solution right in front of me, but with all this researching I can't see the forest for the trees.

Happy for any and all input!

Dan

@Kurt Bender

If the tenants company won't add you, I'd consider readdressing the situation with your attorney and your tenant lease agreement.

If you don't have hold harmless or indemnification wording in your tenant agreement, I'd see if it's possible to add it for future tenants. While not necessarily insurance, at least it's a form of risk transfer. Something to consider.

Licensed P/C agent.

What I always tell my clients is, "whenever helps you sleep at night."

For approximately $800 per $1M of coverage, I'd purchase as much as you can resonably afford. I have some clients with $1M and others with $10M+.

If a tenants guests falls on your entrance steps and becomes paralized, you can bet your bottom dollar $1M isn't going too far.

I feel better myself knowing I get $5M for about $3,600 a year ($300/month). That helps me sleep at night and, to me, is just a cost of doing business.

Licensed P/C agent.

Simple answer is... it doesn't hurt you and shouldn't cost them anything.

You've already experienced the benefit from the property standpoint. Being an additional insured (AI) helps more on the bodily injury (BI) / liability exposures. For example, your tenant has people over for drinks, one gets wasted, falls in your tenants unit and gets hurt. Being an AI on your tenants policy can help with both the BI payments or defense costs (defending your negligence).

I'd make it mandatory if I were you. You can have them evidence it through certificates of insurance. That's my 0.2 cents.

P/C agent here as well.

While there isn't a conflict of interest being your own agent on your own policies, I dont do it. Matter of preference I suppose.

But I handle enough claims for other people. When poop hits the fan for my own assets (two auto accidents in 15 years), I don't want to handle even more paperwork. I'd rather call my account manager and let them do the 'boots on the ground' work. They have better relationships with the claims managers anyways.

Absolutely, without a doubt.

How can your question $1,000,000 of coverage for $20 a month? Heck, a BP Pro membership is more than that!

Make sure all your policies are listed as underlying on the umbrella schedule though (including auto). Can't imagine it'll go over the LLC properties, so I'd buy a separate umbrella for that entity as well.

Licensed P/C agent from RI

Hi Ryan,

I would speak to your current agent about two things:

1. Extending liability from either your primary policy or taking out a separate vacant policy for the liability exposure (kids break in and fall through the unfinished open floor boards and breaks their leg).

2. Take out a builders risk policy for the property exposure, depending on how much renovation you're doing. This way if you leave the space heater plugged in over night and the building burns down, you still have coverage.

Depending on your current insurance policies and carrier though, there's no way to give a definite answer.

Hi BP, Long time lurker, finally working my way towards action after years of analysis paralysis and timidness. After listening to the first 25+ BP podcasts in the past week (I dive a LOT for work), I'm taking @Joshua Dorkin and @Brandon Turner's 'quiccckkkk tippppp' advice and introducing myself in hopes of solidifying​ my plans going forward and meeting other members. I've been a commercial insurance agent for about 10 years now, living in Rhode Island and commuting over the line to work in CT. But god honestly, I've never had a passion for the work I do. However, while I recognize the importance of a highly compensated career that provides for me and my family, I think it's important to love what you do and have a passion for it. Hence why I'm here. After reading Rich Dad Poor Dad years ago, I developed a huge fascination for both real estate and investing, and the opportunities they hold. Unfortunately, living in such a bad local real estate market (Rhode Island is HURTING in many areas), I always found myself making excuses to wait longer, research more, do more calculations, plan to move, etc. But once I stopped and realized what I was doing (coming up with excuses), I made a commitment to change that. Just last week I signed up for my real estate licensing exam (weighed both the pros and cons heavily) with the intent of learning even more, while also gaining access to the local MLS. I think that commitment will help with the private money lenders I have access to, as I start flipping houses to build up cash reserves and invest down the line out of state in a better market. My goal is to find enough work on the real estate side to replace my income as an insurance agent. I believe it's possible, and I know will take a LOT of work! Wow... writing that goal took a lot more out of me than I thought! Strange to actually see it in writing. Anywaya, I would love to hear your story if you can relate and thanks for an awesome community! Dan Wow... typing that was a lot harder than I thought!