All Forum Posts by: Ivan Oberon

 Renter's Insurance should definitely be a must.  You are doing yourself and your tenants a disservice if you do not look to educate them on the importance of this coverage.  I can also tell you without a doubt that the best tenants will always want to carry their own insurance without anyone requiring it of them.  They understand that their policy will protect them against any of their own personal liabilities AND protect their personal property in the event of a fire or theft or water damage, etc... where your policy covering your liability and the dwelling will not extend coverage to them for liability or property damage.

It's best to have this conversation prior to anyone moving in and it can easily be added to your lease agreement.

Ivan

 An insurance claim remains on the property's "Clue" report and is "ratable" for a period of 3 years.  However, those claims, from an insurance premium standpoint should only affect the owner who filed the claim and who owned the property at the time.  Some insurance carriers will look at the claims history and may request verification repairs have been adequately made prior to offering coverage and as you are apparently finding out, some will even choose to rate you for the history of the previous owner.  If that is the case, I would suggest you find a different carrier that will not rate you for someone else' loss.

Ivan

Sure thing @Serge Shnayder.  I sent you a message.

One of my mentors, Tim Norris, likens Insurance to the archers and knights, which defend your “castle.”Let’s explore this analogy.

Contrary to most opinion, insurance should not be the foundation of an asset protection strategy. Think of your assets, whether personal or business, as the items within your castle that you desire to protect. The legal entities that you create, with the advice and assistance of a legal professional, are the castle walls, the moat, and the watchtower you build to help protect them. What you choose to create is a summation of the needs and issues in which tax, financial, and even estate planning must be taken into consideration.

We then acknowledge that insurance is the archer in the watch tower, or the knights with the boiling oil, that attempt to keep nasty things like liability claims, fire, windstorms and other catastrophes at bay. We all know insurance does not cover everything. The list of exclusions in most policies is more than a paragraph. Likewise, the archer does not hit every target. That stated, the archer and knights (insurance) need to work in conjunction the walls and the moats legal entities) to appropriately protect your “stuff”.

I can definitely help you with the right insurance Serge and if you need it, I can refer you to some great asset protection guys.

Ivan

Aaron, I started flipping houses in Southern California and as my business activities grew, so did my relationships and connections.  I found my investors money could go much farther in the Midwest.  At that point I began to build my teams and fly out to those markets to form relationships and better familiarize myself with those markets, etc... I go to KCMO, for various reasons at least 4 times per year.

Ivan

Thanks JJ!  Feel free to reach out Tom.

Ivan

 Are you opposed to investing remotely?  I'm in California too and have been doing all of my deals in the Midwest for the past 2+ years.

 Thank you Jeff!  Yes, this is correct.  We bill on a simple monthly reporting form so we have no minimum earned premiums, like many others, 25%, 50% or even 100% MEP, we waive any co-insurance requirement if you insure for $45 a square foot or more and you only pay for what you use.  I'm happy to answer any other questions you may have about our national program

Ivan

 Sure @Jaron Tibbe,

For example, say you took $40k and loaned it at a certain rate, say 10% cash on cash and you could turn that money 2 times in a year.  That would give you a 20% annualized return and you would not have to tie your money up long term and could also use that as an alternative way to grow that money pretty passively.  Your money is secured by a first trust deed against an equitable real property and you would put certain other safety instruments and agreements in place.  This is how I have operated my flipping and turn key rental business since day one.

Hope that helps.

@Jarron Tibbe Have you considered doing some trust deed investing to flip your money a couple times per year, get a higher return and grow those funds?