All Forum Posts by: Account Closed

Tatiana Duarte those properties you mention get sold dime on the dozen on auctions, I always recommend you attend one to see if it interested you.

Chris Toedter the sheriff sale auctions in your county is were you really find great deals. I get my deals in union county and working towards Essex county.

Christopher K. I understand what your saying and you made some solid points as well as Chris Martin I never said I disagree with his statements and he share some good information that would help in better understanding. Overall I was trying to provide the best information for other investors who wanted to hire a friend, family member or day laborer for a week project or painting rooms but at the same time be cover in case of lawsuit and injuries. I felt I got some good options for my market area but I did stated on my options statement "to speak with your insurance agent". Speaking with an insurance agent will always provide the best option that applies to your state and local area.

Chris Martin I think you went wayyyyyy out of context and off topic. I am only talking about room painting, cleaning the yard, taking out the trash and other simple labor jobs that a friend, family and day laborer can do. Getting liability insurance for a skill tradesman or a handyman is a whole another topic.

After extended research and communication with professionals, here is the answer. If you hire your friends, family or any day laborer, they are consider your workers and fall under the term "independent contractor" and not "employee". 

You have 4 options that will cover you from any liability in case someone gets hurt and decided to bring a lawsuit against you.

1. residence employee insurance- this will cover you if they are doing work on your property on a personal property and not a business property, (this insurance is good for homeowners but doesn't apply for flippers and rentals) This will cover your independent contractors and wont require to hire them has an employee and wont require them to have thier own insurance.

2. Workers Comps insurance-which requires you to hire them has an W2 employee.

3. Commercial General Liability insurance- which covers your independent contractors BUT they must also have their own insurance.

4. Injuries to Sub Contractors Liability Coverage- which is the best option for hiring any friends, family member and day laborer for a project that covers your end even if they do or dont have insurance themselves.

Every state and market is different so please check with you insurance agent to confirm.

Patrick Philip can you share what company would cover it?

Chris Martin thank you I will look into it, didn't think hiring people you know can cause problems if they get injure.

John Mocker when hiring your friend for a few days, would it be better to put them as an employee or independent contractor? And which one provides better protection for your real estate investing business?

Vincent Priore thanks I will communicate with him

Frank Chin what about for flip properties, how would this apply?