All Forum Posts by: Ryan Thomas

@Curtis Reid

Hey Curtis,

I’m a commercial insurance broker. Yes please use a independent insurance brokerage with access to multiple carriers. A 5 plex would be written on a commercial form so you want a broker who has a lot of knowledge in that field. 1-4 units may be written on a commercial or personal lines form. You actually have more access to carriers with 5 units than you would with 1-4 due to the classification, so there are many options to choose from where your at. Travelers always does pretty well there. Let me know if I can help with anything!

@Jessica K.

Hey Jessica, I'm a commercial insurance broker. You will want to use an independent insurance brokerage who can access multiple carriers to provide a tailored package quote. A broker has allegiance to the client and not one specific carrier like state farm or farmers. Property management policy with errors and omissions will be cheap. Here's the deal with flips; we can write builders risk policies for 3, 6, 9 or 12 months and can usually extend if needed. If the ARV is less than 10% of the purchase price we can write it on a cheaper vacant policy form..,there can be some grey area with the ARV cost too. Once complete we would then put it on a cheaper standard policy. Every builders risk will be a separate policy but vacant and occupied dwellings can be scheduled on one policy and we would just add and delete each dwelling as you purchase and sell them. We just bill the lender the prorated amount. That's how this would work. Please let me know if I can help with anything!

@Lenny Markus

Hey Lenny,

Pat is correct. Only thing I want to add is that most carriers allow you to backdate cancel up to two weeks without providing proof (just need a signed loss policy release (LPR) form). No idea why they require proof for a future request, that’s stupid. But with that, you can backdate policies further than 2 weeks if you provide proof of other coverage and sometimes they will allow proof of sale. Let me know if you have any questions!

@Harjot Singh

Hey Harjot,

I’m a commercial insurance broker. John is right 100%. A good brokerage who invests highly in technology and resources to get appointed with the current top markets will handle all this for you.

@Patrick Q.

Hey Patrick,

I'm a commercial insurance broker. I 100% recommend using an independent insurance brokerage as well. The entity name does not really matter. As you grow you will likely want to use an LLC but it's common with smaller investments to use your individual name. Might want to consult with an estate attorney on that one though. As far as insurance goes it does not matter how you file your taxes. Make sure to use a competent broker who has the knowledge and resources to handle your growth. Let me know if I can help with anything!

@Cameron J.

Hey Cameron,

I’m a commercial insurance broker. You have grown to the point that you should schedule your dwellings on a commercial policy. The forms are usually better and include a minimum $1,000,000 in liability. Please use an independent insurance brokerage who can access many different carriers. A brokerage has allegiance to the client and not the carrier unlike state farm or farmers. Your current agent (and many captive agents) will not have much knowledge on writing larger real estate investment portfolios because the carrier they use literally does not allow them to write larger accounts...Please let me know if I can help with anythjng!

@Kenneth Marks

Hey Kenneth,

I say get started! Just do a small deal at first to get your foot in the door and then I promise you will continue to grow. I wouldn’t wait at all. I’m a commercial insurance broker and it’s insane how quick some of my clients grew starting at a much worse position than you. Let me know if I can help with anything!

@Brad Fisher

Hey Brad,

I’m a commercial insurance broker. I always suggest using an independent insurance brokerage who can access many different carriers. That way your working with someone who has allegiance to the client and not the carrier. Rental dwellings can be scheduled on a single commercial policy and you would just endorse every future purchase to that policy. Make sure the broker you use stays up to date with rates and constantly gets appointed with new carriers to mediate renewal increases. Please let me know if you ever have any questions!

@Jeff Henderson

Hey Jeff,

I’m a commercial insurance broker. I suggest using an independent insurance brokerage who can access multiple carriers. That way your working with someone who has allegiance to the client and not the carrier. A good brokerage will invest a lot in market research to make sure they get appointed with the best carriers every year and stay on top of the game. Rental dwellings can be scheduled on a commercial policy form and you would just endorse every future purchase on the existing policy and bill the lender the prorated difference. That’s how easy it is! Let me know if you have any questions!

@Noel Tijerino

Hey Noel, I’m a commercial insurance broker. The inspection has already been paid as part of a fee in the policy. I’m assuming this is a triple net lease? Since you are the owner of the building, you would pay for the updates.

What I’ve done...(depending on how costly and unreasonable the updates are) is switch insurance carriers midterm. They will inevitably inspect but you might get a more lenient inspector. This all depends on what they require and would be used as a last resort. Let me know if you have any questions!