All Forum Posts by: Alex Babayev

@Ratheeh Krishna I am local investor with knowledge of this area - I would say the cap rate is too low. You need to be at least 10% or higher in current market conditions. Always remember if another market crash happens most likely rents will go down your property value will go down and this cap rates you have will be very slim. 

@Stone Jin This is exactly my point! "The guy with 100 properties will have more claims than the guy with 1 property."

@Michael Seeker My point is I have never had a claim on my own PERSONAL residence EVER. Currently insurance underwriting does not separate a persons business properties vs Personal residence. I am getting dinged for my business. I am trying to figure a solution out - I understand because of my previous risks I am considered a high risk candidate (I am not debating that) but I am trying to structure my business going forward to avoid being dinged for claims on my rental.  

@Jason Bott Thank you! very helpful explanation. I appreciate it.

@Patrick L.  Are all 60 of your properties in your personal name?

let me rephrase my question. 

Does it make sense to transfer all my properties into an LLC get insurance in the LLC name which will avoid future derogatory reporting on my personal name with insurance agencies?

@Andrew Johnson I am not disagreeing that they see me as a risk. My question is to find out how other who have several properties and several claims handle the situation. 

@Anthony Gayden My deductibles are $1,000 on my properties. 

But I don't agree with the logic of not using your policy and paying out of pocket. 

My claims were $26K - $5K - $8K for separate properties separate issues.

That would be lots of out of pocket cash and a very unprofitable rental portfolio. 

@Kim Meredith Hampton @Andrew Johnson @Nathan Gesner

My logic is that the more properties I have the more exposure and chances of me filing a claim may happen. My claims came from water pipe burst, AC unit being stolen, and water damage in a condo from upstairs (all at 3 separate properties). All situations are out of my control. 

I am wondering what people do when they have multiple properties 20 or 30 properties for example you can't avoid and control the claims. 

Is the solution to put properties in LLC and get insurance in LLC name to avoid negative reporting on my name personally.

Hello BP World, 

I currently have 6 rental properties that are all in my personal name. Over the years I have had 3 different claims at separate properties some that I no longer own. My problem is insurance companies are now not insuring me personally for my primary residence or if they are insuring offering really high rates because I am considered high risk individual in their eyes. 

How have you guys avoided this issue? Are you experiencing similar issues?

Regards, 

Alex B.

@Sergey Tkachev I get a combination of off market and FMLS. My off market deals come from networking with local investors and letting them know I got cash to buy. Also I motivate agents by letting them know if they sell me a deal, I will also use them to list the house after the rehab. 

@Kamila Taylor We painted the stone with white paint and a sponge - took several coats to get the look we wanted. For the inside we used black heat resistant paint to contrast to white and the black. The mantel we just painted wood like color. 

@Account Closed I got them locally at wholesale cabinet warehouse in Norcross, GA 

@Pam Simmons Great question Pam! Let me break it out a bit more. I negotiate flat rate fees with my contractors when I have a project. I do not pay item by item. 

So the $19K labor tab was for kitchen remodel, laminate flooring installs (Upstairs), All bathroom remodels (3 Bathrooms), addition in basement, & interior paint. I had one contractor do most of the interior for the $19K price tag. 

The additional contractors that were seperate were the Exterior Painters, Granite Installers, Carpet Installer & Landscaper. All of these contractors included material + labor in the invoices so I could not break out on here how much was for labor how much was for materials specifically. 

So the true labor cost of the project was higher than $19K when you factor in the additional contractors.