Fire, smoke, explosion, vandalism, wind, hail, weight of snow, falling objects, sewer & drain back up, liability such as slip & fall, electrocution, broken water pipes, personal injury (aka discrimination), service line break, fungi & rot, etc etc etc.Good business practices and tenant selection is your first layer of defenseInsurance is the second layer of defenseLLC is the third layer of defense.If a situation is bad enough to need your third layer of defense - you’re basically looking to quitclaim the property and bankrupt the LLC and walk away.

Have you seen the @James Wise videos?

A more conservative investor plans defensively for the worst case, and then is happy if it doesn't happen.

Originally posted by @James Lusk:Hi Henry.

Thank you James.

I trying to purchase first commercial building, approached a company name Guaranty Loans  they are in Phonenix Az , guy name Casey James did application, but then I read on app it said loan fee had to paid upfront before loan can be processed... anyone ever heard of this company or is there such a fee upfront he said they are private lenders...

@James Wise Thank you!

This will allow me to learn about how certain tasks are billed, how to negotiate with contractors and allow me to better budget for rehabs.Not sure if anyone has listened to the Podcast Episode 338 with James Dainard but he mentioned he’s doing this with his team out in Washington State.

It seems to me you should determine if this position is defensible before you ask your original question."

If I were in your shoes James, I would pick rental, for example.