All Forum Posts by: Mike Kalob

Thanks I found one insurance with no limit but they need all properties to be in one state, which isnt the case.. each property currently has individual 300k policies, but I prefer Umbrella to LLC route since, its cheaper and is a "catch-all" so I don't have to up each individual property's coverage to $1mm a piece, which ups the premium.

PS, for those with multiple rentals approaching 8 - 10++.. what do you guys do?  

Most umbrella insurers have a cap on number of rental properties - around 4 - 7 max.. thanks

I have 8 properties all paid for in cash, my current $1million UMBRELLA insurer (gecko) says I can only have 4 rentals max...

Do I....

A) Just get a second $1million Umbrella Insurance to cover the other 4 properties

or

B) Put the other 4 properties into INDIVIDUAL LLC's and up either up each limit to $1million, or keep at current limit, and just get a second $1mm Umbrella BUSINESS Insurance..

or 

C) other option?

I'm heavily leaning toward option A since LLC/Business Insurance rates seem higher.

Is there anything wrong with having 2 Umbrella Insurances?

Thank you.

Thanks all for the replies...

Mike, in my example above, the Amount Delinquent (your added 3rd column) is what I placed in my column 1 of "Tax Lien," so I'm not certain what you meant by adding that 3rd column, but if I missed anything let me know, thanks much.

My assumption is that the premiums in NJ (North NJ specifically) are soooooo much higher (10X - 50X in some townships, yes Ive seen it go that high) than the rest of the country is due to proximity of Wall Street/ Hedge Funds/ Private Equity envoy bidders in the NYC metro who outbid all the mom and pop retail investors as they add it to their alternative asset portfolios for their institutional (usually national pensions) clients.

South Jersey may be a different case, cause these hedge fund guys may not want to schlep that far out or make it back for their tee time, but I'm giving feeback based on North NJ which is overly competitive, thanks.

Hi All,

Thanks for all the tips thus far... so I have 4 properties at the moment, all under my personal name; I read the LLC Vs Umbrella Insurance threads and decided to get $1mm Umbrella under my name, with each unit having its own separate insurance policy (300k liability each)..

Now, I'm planning to get 1-3 more properties, but my Umbrella Insurance is saying that I will now need a commercial policy as it sounds like I'm running a full-time rental business, which is kinda true, though it's my side-gig atm (I'm in full-time finance). 

My condo/home insurance carrier which insures each of my current 4 places said the same thing..

..So I ask you all with over 4-5 properties - at this stage in the game...

1.  Do you dump the Umbrella Insurance (which covers only personal rentals, NOT COMMERCIAL rentals which is what they'd deem my activities if I get more properties).

2.  Do you get Commercial Insurance ON TOP OF home/condo insurance of each of your property or are they swapped?

3. Assuming its swapped in Question #2, can I assume you then have an LLC for each property instead of the Umbrella Insurance route? If so are you paying for 5 commercial insurances for 5 separate LLC/properties?

Thanks in advance for any insight.

PS I'm in NJ and all my units are residentials, not commercial properties.

Thank you all, it seems this 1 town's tax collector is not as adept as I have spoken to another town's tax collectors which I just purchased and she was very nice to explain to me what you guys just mentioned.

Are there examples of such Affidavits (1 Affidavit for recording with county, another for Subsequent Taxes) available online or must I usually retain a lawyer? Thanks very much.

Thanks I've done both via fax per their request, it seems they are unaware of such a request in this particular jurisdiction.

Thanks Ibrahim,

I actually exchanged emails with him a while back but it seems he only does foreclosures.. guess he's busy.

I read his great book which has Affidavit for Subsequent Tax Payments, however when I brought this forward to the Tax Collector (after recording the Tax Sale at County) she had no idea how to add a subsequent water lien to the original Tax Sale.

This is in Bergen County.

Hi All,

First off thanks for all the knowledge from this site thus far. I just purchased a water lien at a tax sale.

4 months later, I confirmed water bills are STILL unpaid by the homeowner, and I have confirmed the $$ amount owned, but I have tried unsuccessfully to pay this water lien AND ADD it to my current Tax Certificate (recorded from the county).

Whenever I speak to the Tax Collector, she says yes I can pay it, but when I tell her I want to pay it ONLY to add the balance to my outstanding Tax Certificate balance owed so I can collect 18% on the new amount paid, she looks at me like I have two heads.

My assumption was it was possible to add new outstanding liens to my previous Tax Sale purchase. Is this not the case? Thanks much, I'm in North NJ btw.

Thanks Ankit/Jared - not to be redundant, but I understand if I bought a water lien I can pay for subsequent water bills and add to my water lien...

... but it sounds like I can add subsequent unpaid property taxes to my purchased water lien as well by paying for unpaid subsequent unpaid property taxes despite them being a different tax type (ie NOT water bills) than the original lien? Many thanks.