All Forum Posts by: Traftin T.

Quote from @Todd Goedeke:

@Traftin T.contact any commercial insurance agent, any agent that writes insurance on small business policies. You need to lease and have terms in the lease that covers who pays for insurance on your leased property.

Get information from an agent experienced with commercial leasing for small businesses. Don t rely on information about insurance from non licensed posters. Rely on facts not opinions.

 Thanks Todd,

I appreciate that suggestion.  I'll reach out to a buddy that does commercial insurance.  I came on this site to see whether anyone had a company they used that covered their needs so that I could call them to see if they would cover mine as well, but I'm starting to wonder if there is one, as I've made this same inquiry in a few real estate groups with not 1 company being mentioned, which is scary considering how prevalent this practice is.  I even reached out to a popular guru who is a huge proponent of arbitrage and his reply was suggesting that I ask the people that are in his private fb group IF I have access.  I found that answer pretty interesting considering he's pushing the approach very hard and being compensated quite well for it.

Quote from @Ryan Letzeiser:

Quote from @Traftin T.:

Quote from @Ryan Letzeiser:

This doesn't exist. Corby is correct. You do not have an insurable interest in the property so you cannot get a standard property/gl policy for yourself that ultimately covers the owners assets and liability. The owner must have an STR endorsement in place on their policy…. And even this is a grey area as some exclude subleasing for short term. Unfortunately the insurance industry moves slower than real estate and is not set up to handle these new types of business models. Even short term rental itself is not a risk that most carriers are willing to price.

Thanks for the feedback Ryan. It may not have been clear in my initial post, but I'm the landlord, so I do have insurable interest. Finding a policy that allows for STR's isn't difficult, but I'm seeking a policy that will cover me that allows for STR arbitrage. I have a STR policy as I've been running my duplex as an STR for 2 years now. I'm wondering if the landlords that are allowing this are not being fully transparent with their insurance companies or if I'm just not finding the right insurance companies to fully cover me.

 Makes sense now!  I’d look into RLL (renters limited liability). It’s like 8-15 a month.  That should cover most of your liability and property damage that’s not a total loss. There are a few carriers out there that do this. 

We have done it for a few customers that want some extra protection that’s caused by a renter or a sub renter so you don’t have to shell out a ton for a deductible when you my have 20k in damage from a small kitchen fire etc. 

 Ok, thanks for the recommendation.  While that helps, I likely won't move forward unless I'm able to find a solution that will cover a big fire or total loss, lol.  I need to be able to sleep at night...

Quote from @Zeona McIntyre:

@Corby Goade I started with arbitrage but quickly moved to owning properties (as soon as I could afford to) because I wanted to take part in the equity gains. From my experience, one can make more with arbitrage but it is risky. I also cohosted for many years and agree that that is an easier approach. I loved it because its no money down and you make money from the first booking, not having to worry about expenses to profit. 

Hi Zeona -

When you were in arbitrage, do you know who the landlords were using for insurance?  I know as the tenant, that's not necessarily your concern, but I'm trying to find a company that fully covers the landlord in that situation.  In speaking with Steadily, they said that they stopped covering landlords for rental arbitrage a few months back. 

Quote from @Ryan Letzeiser:

This doesn't exist. Corby is correct. You do not have an insurable interest in the property so you cannot get a standard property/gl policy for yourself that ultimately covers the owners assets and liability. The owner must have an STR endorsement in place on their policy…. And even this is a grey area as some exclude subleasing for short term. Unfortunately the insurance industry moves slower than real estate and is not set up to handle these new types of business models. Even short term rental itself is not a risk that most carriers are willing to price.

Thanks for the feedback Ryan. It may not have been clear in my initial post, but I'm the landlord, so I do have insurable interest. Finding a policy that allows for STR's isn't difficult, but I'm seeking a policy that will cover me that allows for STR arbitrage. I have a STR policy as I've been running my duplex as an STR for 2 years now. I'm wondering if the landlords that are allowing this are not being fully transparent with their insurance companies or if I'm just not finding the right insurance companies to fully cover me.

Quote from @Corby Goade:

Generally speaking, the owner will carry that policy and as long as they are covered for STR, it shouldn't matter WHO manages the property.

Side note- I'm so confusted by the arbitrage model. Why wouldn't you just start a STR managent company and approach things from that angle? You'd make more money, the owner would make more money and it would be a much more straightforward approach- easier sell for sure. I just don't get it.

Thanks for the reply Corby. Perhaps I should clarify that I'm the landlord in this situation. I've been STR'ing my duplex remotely for a couple of years and have drawn up a very favorable contract for an STR arbitrage user, however, I'm having trouble finding an insurer that will allow for STR arbitrage coverage for the landlord. I see from various posts that apparently a lot of people are doing this, but I'm curious to see what insurance coverage landlords are using or am wondering if the landlords are rolling the dice and risking being denied in the event of a total loss.

Hi all -

Does anyone have a recommendation for obtaining insurance for a landlord that's willing to allow for STR arbitrage? I know there are policies that allow for STR's, but haven't found one that will cover a landlord that's allowing STR arbitrage.

Thanks.

Originally posted by @Paul Durbak:

Marco, I can do 25 years Amort. Send me a package to look at. I also know some people that can get you HUD financing up to 35 years. Depending on how seasoned the property is.

Paul  Durbak

Ohio Catholic Federal Credit Union & Augustine Financial Services, LLC

 Hi Marco -

I'm interested in the HUD financing that you mentioned. What are the terms?

Thanks.

Hi @Rebecca Knox -

If this property is still available, can you send the info to [email protected].

Thanks.

Please send pics and financials to [email protected].

Thank you.

Hi Kate -

Please let me know if these properties are still available and provide pics, additional info, if they are.

[email protected]

Thanks!