All Forum Posts by: Carol D.

@Tim Norris

Thanks for the advice. I tried to get an umbrella policy but my primary insurance company would not issue a policy unless I had everything insured by their company. I do have everything except 1 home. For some reason they want to charge almost double the rate I currently pay.

Are there companies that would issue an umbrella policy with other insurance companies as the primary insurers? If so, could you recommend one or two?

(I do have all my policies set at $1 million liability. And one low cost property is held in an LLC.).

Thanks!
CT

I had one of my properties inspected today and the inspector is telling me I need a termite bond. He said the house has no signs of active termites but signs that there were termites in the past. I have not owned the house long so I do not know the history... if it has been treated. There is no termite damage to the house itself. Does anyone have advice on how to deal with termite prevention?

Hedge funds are buying up properties in my area at local auctions. This is probably good for the economy because it is helping banks get rid of unwanted properties... but what will that do to my properties. Will rents go down? Will sale prices go up? How can I position and protect myself from anything they may do to manipulate or radically change my local market?

Derrick,

I am not an expect on the subject you may want to consult with a lawyer... but I have done some reading on this recently and started my first LLC. If you have properties with a mortgage you probably don't want or need them under an LLC. However, if you are buying properties with cash an LLC is a great way to reduce your liability. I have several homes with mortgages and just leaving them with me as the owner... yes that leaves me open to a bit of liability but I increase my liability insurance to 1,000,000 on these homes and it only increase my annual premium by $5 per house. I am currently buying a low cost property under the new LLC. My CPA advised me that I should have an LLC for every house but I think I could own several low cost homes within one LLC. If you have more expensive homes then you may want a separate LLC for each home... again you probably need to discuss your situation with your lawyer and CPA. Good luck! -CT