All Forum Posts by: John Jacobs

I hadn't heard the word doofus in a long time.

@Kenton Guidry   Hi Kenton,  I have had replacement windows installed at my primary residence as well as at one of my rentals.  I am a private money lender.  The Contractor was recommended by one of my borrowers.  The Contractor did an excellent job and the windows look great.  He used Polaris Windows.  He said that these are the windows that he always installs.

@Chris Seveney    I do not talk to the Insurance Company directly.  I talk to the borrower and the Insurance Agent.

@Jaron Walling  Hi Jaron,  Yes that was my understanding as well.  Thank You John

@John Mocker   John,  Thank you for such a comprehensive and informative Email.  John Jacobs

@Jason Striker   Got it thanks.  I have reviewed your properties above--of that list when was the first property purchased and when was the last property purchased?  Also of the those properties, ballpark, what percentage were listed and what percentage were distressed (i.e. foreclosure, short sale, off market from a wholesaler, etc...)?

@Jason Striker  What does HCL stand for?

Re: Homeowners Insurance on a Real Estate Investment Property from a Lender’s Perspective

I am a private money lender.  Amongst other things I always instruct the insurance agent that the property will be vacant. I always request a Builder’s Risk Policy.

My question has to do with what I need to tell the Insurance Agent in terms of how much property insurance I want.

Here is an actual deal that I lent on. I lent $225,000 of which $185,000 was for the purchase of the property and $40,000 is going toward renovations.

As a lender I just want to get back my loan amount back (in this instance $225,000) if there is a total loss with the property.

I have seen where a lender tells the insurance agent how much property insurance he/she wants based on a price per square foot calculation.

On the other hand I have also seen where a lender tells the insurance agent that the amount of property insurance should be the loan amount in this instance $225,000. I myself have done this and when I have the insurance agent comes back to me to ask me how much the purchase price is and how much in renovations are.  I provide to the insurance agent the breakdown in this instance $185,000 (purchase) and $40,000 (renovations).

How should I best communicate to the insurance agent how much property insurance that I want (and communicate it in such a way that they he/she clearly understands)?

Thank You

John

@Beth Johnson   Thank You :-)

@Chris Seveney   Thank You!