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All Forum Posts by: Rod Hanks

Rod Hanks has started 8 posts and replied 566 times.

Post: Commercial NNN lease contract , can anyone comment ?

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370
Quote from @Daniel Huang:

so if there's a change of ownership the new landlord will not be able to collect more than $12,480 property tax or $2,500 insurance? 

Yes that is correct because you assume the landlord lease. Unless you can get the tenant to sign a new lease with new ownership you are stuck with it until lease is up. But definitely talk to your commercial realtor or attorney for clarification.

Post: Commercial NNN lease contract , can anyone comment ?

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370
Quote from @Daniel Huang:

"You" as the tenant correct? We will be the landlord.

Correct “You” as the tenant. It’s a great clause for the tenant but not so much for the landlord.

Post: Commercial NNN lease contract , can anyone comment ?

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370
Quote from @Daniel Huang:

We just made offer for  a retail property and some clauses in the lease agreement that we couldn't understand. Can anyone comment on this?Anything will be really helpful?

Thanks in advance.

13 .Taxes : Does above mean Tenant will only reimburse landlord's tax up to $12,4800 in the first year . How does the per diem clause work?

Does landlord gets reimbursed full property tax amount for the rest of the terms?

12. Maintenance and repairs :  

It looks like Landlord will only be reimbursed up to $1,500 if any parking structure repair incurred by tenant .


Insurance : Does this mean Tenant will only reimburse landlord's insurance up to $2,500 in the first year . How does the per diem clause work?

I’m not an attorney but I have signed a number NNN leases. They are capping the the taxes and insurance portion you are responsible for. If you were to default on the lease you are still responsible for the portion of taxes and insurance for the time that you were occupying the property. In my NNN leases there are no caps FYI.

Post: Just got paid to purchase a 4 unit in Posen, IL

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370
Quote from @Russell Bonds:

*Closing Day* I closed on a 4-unit building and got PAID to BUY this cash flowing asset. I structure the deal to walk away with $5,000 and now i’m the owner of a 4-unit🏢.

I was my own real estate agent and insurance agent on the deal. The attorneys involved in the transaction were surprised how I was able to pull this off but I did a lot of research and preparation for this day.

Thanks to the team at @veteransunited for financing this deal. Also huge thanks to @attyreynoldslaw for their expertise in real estate law and helping me along the way!!

I’ll be posting more on this deal breaking down the structure of it, commission splits, and my plans with real estate. 1st major deal for Golden Heights Holdings!!


 Congratulations on your first deal of many more to come!

Post: Insurance for AS IS HOM, roof 17 years

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370
Quote from @Juana Suarez:

Insurance for AS-IS HOME Hello someone can recommend insurance for a property with 17-year-old roof with 3 years remaining useful life

I can help. Shoot me a PM

Post: Can't paint unit tenant

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370

Raise the rent anyway and let her decide is she’s moving or staying. Really impossible to paint the unit if she won’t let you. Also you don’t have to justify a rent increase.

Post: Low Income Multi-Tenant

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370
Quote from @Garrett Stembridge:

I currently have one SFH rental, which I've had for several years now, but looking at a 5-plex. It's not section 8 housing but it's a lower income housing complex. Any general advice/tips on ways on how to improve overall cleanliness deal and navigating trying to keep it a drug free complex? Anyone successfully try to incentivize current tenants to get their spaces cleaned and and better cared for? TIA

Tenants are who they are, you are not going to change a messy tenant to a clean tenant. So with that being said you will need to repair and clean the exterior of the property and as the units go vacant upgrade the units for the type of tenant you are looking for and carefully screen for much better tenants. 

Post: Tenant's personal property damaged by neighbor - landlord's role?

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370
Quote from @Russell Brazil:

This thread is exactly why landlords are almost universally hated. 

Do you have liability for it? Probably not. But you are a business owner and you have customer. Your tenant is your customer, and you have the ability here to step up and provide great customer service for hardly any money at all.

Instead of trying to figure out who owes exactly every nickel and dime, provide a great experience for your tenants. Provide them stellar customer service. Then your turnover and vacancy rates will plummet, and your tenants will start giving you referrals to other great tenants for your other units.

When I first read your post I said WTF??? But now that I think about it you are right. Landlord probably needs to replace the window unit for her and I would definitely require her to get renters insurance asap.

Post: Short term rental insurance

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370

Texas has one of the highest insurance rates in the country and Houston and Dallas has the highest rates in Texas. Houston has hurricanes floods and wild fires which accounts for the rate. 5k is a good rate for a STR if it's it State Farm. Sorry for the sticker shock.

I have another National carrier that may beat State Farm but pretty sure not by much. PM if you would like a quote.

Post: NRIG Insurance Pro's or Con's

Rod Hanks
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 585
  • Votes 370
Quote from @John Lupo:
Quote from @Rod Hanks:
Quote from @John Lupo:

Hi Biggerpockets Community

     I was wondering if anybody  has used or is using NRIG for their multi family properties, I received a very low quote that seems to good to be true, I have a fully paid for property in Los Angeles Calif, and came across NRIG from the recommended vendors list here on Biggerpockets, I am doing some due diligence and found some old posts, but I am not getting a warm fuzzy feeling about them if anyone has some current experience with them I would love to hear from you or if you could recommend a good agent that would be great.

Thanks


m

 It might be best to get with an independent agent. We use Guard for multi family properties, they are very competitive in CA and the coverage is very comprehensive.


 Hi  Rod 

Thanks for the reply, we been using guard and for some reason according to my current broker said since we haven't had any major improvements done to the property like new roof electrical or plumbing they will not cover this property anymore. So my agent gave us a quote of 6k from another non admitted carrier ( IAT insurance group) , NREIG being a non admitted company as well quote was 1,200.00 huge difference for 2  non admitted carriers, ( leaving to think differently about my current broker) or is this just the way property insurance is now,

Have you ever heard of being turned down for insurance just because we don't have any documented improvements in the the past 15 years ? the build is a all update date with circuit breakers and copper plumbing and has been seismic retrofitted.

Thanks rod


 Yes, Guard is a preferred admitted carrier and they require the property to be updated unlike a number of non admitted carriers. The non admitted carriers are looser with their guidelines because they have exclusions and coverage limitations that the admitted carriers do not have. They also exclusively only cover the properties at actual cash value and sometimes exclude theft and have limited water damage coverage. Non admitted carriers are ideal for older properties with deferred maintenance. Compare the Dec page and exclusions of NRIG and the one your broker provided and pay attention to the exclusions. If it’s a 1200 difference I would assume there are some exclusions that were not discussed. I would also recommend getting a third quote from another non admitted carrier to see if it’s competitive in price and coverage.

PM me if I can help.