All Forum Posts by: Rod Hanks

Try your state fair plan. It's limited coverage but might be your only option. 

 Their requirements are a window and a closet and at least 70sf. 

I think that would move your offer to the bottom of the pile. Get an idea of what the insurance and taxes would cost before you submit an offer. 

The biggest issue with getting licensed just to fund your own deals is the arm’s length rule. Most lenders require that the broker in the transaction isn’t personally tied to the property—so if you’re trying to broker your own loans, a lot of lenders just won’t allow it. That kind of takes away the main advantage you’re going for, which is direct access to financing for your own investments.

That’s a great move, and good on you for thinking ahead about protection. At a minimum, you’ll want a solid landlord or rental property insurance policy to cover the buildings, liability, and loss of rental income. If you’re putting the properties under an LLC or another business structure, you might also look at general liability insurance for the company itself. Depending on how hands-on you are, maybe even a workers’ comp policy if you hire help directly. There are also umbrella policies that add extra coverage on top of everything else, which can give more peace of mind. I would love to help and see what we can do to.

Yeah, you’re definitely not alone—it feels like everyone’s getting hit with these crazy insurance hikes lately. It’s frustrating because you do everything right, plan ahead, get your properties rented, and then stuff like this just eats into your cash flow. Totally get the feeling of finally getting ahead just to get dragged back again.

What you said about switching to a landlord policy is super common too. It used to be cheaper, but not anymore in a lot of areas, especially with storms and inflation driving rates up across the board.

Some landlords are starting to go with actual cash value instead of replacement cost to keep premiums lower, but just know it can mean getting less back if you ever file a claim. It’s a trade-off, so it really depends on your risk tolerance.

Also, if you haven’t already, maybe talk to a broker who works a lot with investors—sometimes they have access to smaller carriers or portfolio options that can help spread risk and lower rates a bit. But yeah… it’s a rough landscape right now. You’re not crazy for feeling it. If you want, I’d be happy to take a look and see if there’s anything I can do to help.

Marginal deal at best. You gone bleed yourself dry at those numbers. 

Congratulations! $1000 per door is a grand slam out the parking lot home run!

I'm in Tx and I would love to help.

Depends on carrier. Our main carrier policy converts to vacant dwelling policy at completion for duration of term and can be renewed on case by case basis if unfinished or unsold.