All Forum Posts by: Jason Bott

There are multiple options in the market place, but you need to make sure you are talking with an independent agent who knows where to look.  I have a few companies that will do an unlimited amount of locations per policy, but will have a higher minimum annual premium as a commercial policy.

@Sean O'Dowd

If there is 1 entity managing the properties, you have the ability to add multiple llc's to 1 umbrella policy.  Even management companies who are managing properties for 100's of owners have the ability to combine them.   Since the management company has "care custody and control" it makes this possible.

If the management AND ownership was different, then there needs to be separate policies.

@Account Closed 

What is the liability limit on your current policies?  A stand alone commercial umbrella/excess policy that goes over other insurance carriers will require your current policies to have $1,000,000liability  limit. 

 Does your current insurance policy have the option of increasing the "Occurrence" limit to $2,000,000?  An alternative to consider to get you the same result as adding a $1,000,000 umbrella/excess policy.  This can also less expensive than purchasing a separate policy.

Lastly, there are policies out there but the minimum premium may be higher than what you feel is reasonable. 

My wife and I just closed with Michael last Friday.  We are doing a large kitchen remodel and Michael was able to get us $25k without needing my personal or company tax returns.  The process was so easy my wife kept asking what the catch was:)

The alternative through my current bank was to do a construction loan, have to pay for the post construction appraisal ($400) and then only get 80% of the increased value.  At my estimate it would have cost us the $400 and we would have likely only received $15-$18k.

$100 closing fee, 5.99% amortized over 7years, no prepay penalty.

This is a great product! 

@Ed Neuhaus 

This is done, but usually on a much larger scale.  You usually need a minimum of $250k-$500k to fund the program.  This is rarely done in the Property insurance market as the rates are so low in the standard market. 

This is more common with high risk products or operations.  Think of a large trucking firm with 500 trucks @ $2,000 a piece.  It makes sense for them to form this captive, bring an additional Risk manager to manage the program and an extra safety guy/girl to mange the risk.  If done right, it can be both profitable and a competitive edge in the market place keeping cost down.

@Douglass Belt 

Way too high and it does sound like the wrong policy as you mention $100k in liability and "Persoanl Property" instead of "Business Personal Property"

@Brie Schmidt 

I'll send you a pm

I logged back in with Firefox and your spreadsheet came up, which I missed on Explorer.

If you buy for $450k, and you are write the insurance policy for $450k, your insurance estimate put you @ $0.75 per $100 of builing value, and that pricing is available in the current market.  The coverage will most likely be ACV.

That being said, most of the insurance companies will be asking for you to insure for $100 per sq/ft.  @16 units, I doubt the building is 4500 sq/ft or 281 sq/ft per unit w/o any common space.  So let's say the units are 500 sq/ft, total building sq/ft would be about 8,000.  This would push the building value to $800k, and @ the rate per $100 of $0.75, you could pay upwards of $6,000.

@Dave Carpenter 

@Javonni Butler 

Good to see so many SE WI investors on here.

Regarding your comments on the insurance, you will want to get a quote on the building to confirm that #.  There are many insurance companies in WI that have written rentals from 2008-2013, that are not allowing new polices to be issued.  So the #'s your mentor has may not be available to the next owner. 

Premiums for 16 units in Milwaukee are all over the place.  Feel free to post the policy details and I will be able to tell you immediately if you are high or low to what is currently being offered.

@Ramon Jenkins 

@Jeff G.