Inspections are probably the cheapest insurance against catastrophic loss on a house deal.My Inspector only charges $150.

Add to that the promise of universal health care and the restoration of the welfare state (already passed in the stimulus plan) and we've got a catastrophe of epic proportions on the way.Keep digging and stock up on food!

If you want to read more of what is coming (and what to do about it-somewhat), there is a free site called http://www.mises.org.They've been writing about the coming catastrophe since 2002.

Having said that, I think the rental property business will be one of the best businesses to be in during this catastrophe.

I understand what you are saying here but it is difficult to do that and alert the people in this country to what is going on.Walter Concrite is quoted as saying:"It seems to many of us that if we are to avoid the eventual catastrophic world conflict we must strengthen the United Nations as a first step toward a world government patterned after our own government with a legislature, executive and judiciary, and police to enforce its international laws and keep the peace," he said.

In real estate, you either take control or be controlled...http://www.biggerpockets.com/renewsblog/2010/02/10/controlling-your-real-estate-deals-manage-catastrophe/ Congrats on making the tough decision, and good luck with the upcoming closing!

Does it make good sense to HAVE to insure something for a higher amount if the owner wants to limit their indemnity amount in the event of catastrophic loss?

That is not true with RE, and presented with the right combination of catastrophes, no amount of LLCs or other 'corporate veils' will assure a guaranteed protection for you personally, or your other assets in excess of the cost of the property.

I wanted to make everyone aware that half information in the wrong hands can literally be catastophic to the true investors among us.No disrespect here J, but you write in generalities like "most people" and "most courses" and "they" never take action".I have given you "specific" examples of how over hyped information to over hyped markets has had a catastrophic effect on Specific markets.The Charlotte example I gave you wasn't a suppasition (sp), it was a fact.

The more you understand the landlords the better, most are pretty logical thinkers.If you convey your concern that you may be evicted when a deal is made and explain that this really places you in a situation where you may have to have a contingency plan of finding another property to rent... they might realize that having two vacant properties is catastrophic for selling to an investor.