In Panama, it is common that the banks require a life insurance policy naming them as beneficiary if you get a mortgage.I have not heard of that in the US before. 

I'm asking two other people who might be interested to spread the risk and would take out a 2MM (Partner and I named injured) insurance policy to name the equity partners as beneficiary of the policy and property going to my business partner.Any default, equity partners can liquidate to achieve capital recovery or retain for long term investment goals.

Your policy should cover lost rents so claim that as well.

Some people will say, "Take out a quality Insurance Policy and you will be protected."

You can go two different ways, if you want conforming mortgages, then put them in your personal name,,if you want to put them in an LLC, then use higher priced commercial loans.If you want to get the mortgage in your name, then put in an LLC,,thats fine, but the LLC will no longer give you the protection you think you have,,the financing is in your personal name,,,you on the hook.If your managing the property, involved in the rehab, or personally guarantee the financing, the LLC is no little to no value,,just get a large liability policy,,,,

You're not a bad guy for enforcing the policy in the lease.

Also get the added protection of LLC and/or Umbrella Policy to protect that fully paid off primary.Buy your first investment property by leveraging.

I was first introduced to Leigh High in 1982  I was on a CA select committee that was studying large subdivisions that were developed prior to modern zoning laws. 

I prefer them to be filled in completely and I feel a policy such as yours would create incomplete apps.....either because the applicant may not recall all of the contact numbers or other info asked for or that they may feel rushed in filling it out on the spot.I prefer to email the apps out when they call me on a vacancy.

:NOTE: Important to keep the date of when these items were receivedFINANCIALS (get from Property Management Company or the Seller):Annual Operating Statements (for past 2 years)Monthly Operating StatementsYear to Date Operating StatementRent Roll for the last 2 yearsLast 3 month's Bank Deposits by the sellerBudget ForecastExisting Loan Documents ** ask if will take AssumptionSecurity Deposit Account StatementUtility DepositsRequest Schedule E if questionable financials, certified by accountant.OPERATING INFORMATION **** Must sort by importance:Management ContractCopy of all Lease Types (all leases delivered at closing)Concessionary RentsLease Expiration ReportUtility Bills (for Water, Sewer, Gas, Electric, CATV, Ethernet, Phone) - for past 2 yearsProperty Tax Bills - for past 2 yearsService Contracts (all currently under contract: trash, exterminating pests, maintenance, laundry, pool, elevator)Advertising ContractsPayroll Register (employment contracts)Operating Manuals (phone, computer, fire system, etc.)Insurance: Policy (premium disclosure)Insurance: Claim History (for past 3 years)Insurance: Carrier Risk AssessmentMiscellaneous Agreement (Vending, Pay Phone, etc)Capital Improvements and Maintenance History (for past 3 years)Incomplete Maintenance Requests (for last 3 month's maintenance requests)Yellow Pages Listing ContractCredit Bureau ContractPet PolicyCommission AgreementsRent.com reviewLEGAL AND PHYSICAL INFORMATION:THIRD PARTY INFORMATIONAppraisalDeedTitle PolicyLast Sale Price/DateTax Assessment: Land/BuildingSurvey (Get the original)Architectural PlanSite PlanInventory of Personal PropertyTools/Supplies InventoryBusiness LicenseZoning CertificationBuilding Code Compliance Letter ** Tell bad news fast to your investors; don't hold off on thisCertificate of Occupancy ** Tell bad news fast to your investors; don't hold off on thisRental Ordinances ** Tell bad news fast to your investors; don't hold off on thisLitigation History ** Tell bad news fast to your investors; don't hold off on thisTenant Estoppels (Optional at Closing) ** Tell bad news fast to your investors; don't hold off on thisBuilding PermitsMARKET INFORMATIONMarket Survey (3 - 5 nearest competitors)Existing Competitive Supply SurveysEnvironment Surveys - Phase I/Phase II, if necessaryEngineering ReportFire System Inspection ReportsElevator Maintenance Report (if applicable)Boiler Inspection ReportHVAC Inspection ReportLead Paint - Inspection reports / tenant waivers / historyMold - Inspection reports / tenant waivers / historyFuture Competitive Supply ForecastPictures - Aerial / GroundArea MapApartment AssociationApartment Guide ListingCopies fo All ADvertising, Brochures, Floor PlansDemographic Reports: Housing, Income, Employment (3 radii - 1 mile, 3 miles, 5 miles distance)Traffic Study and/or Road Improvement PlansNeighborhood Survey: Shopping, Schools, EmployersCrime Report