All Forum Posts by: Gina Coleman

@Gina Coleman Check with a few independent insurance companies about your policy options. My company allows me to place more than one property together on one policy which saves me a lot of money.

If the buildings are all on one lot this won’t apply.

I have one property with multiple buildings and it took a little more creativity to write its insurance policy.

 where and how much did you pay ? 

 Where did you close in Cleveland ? 

The GC should provide you with a contract. Here are the things I would recommend looking for in that contract. 

1. Scope of Work: Clearly define the tasks and responsibilities the contractor will undertake. I can't tell you how many times I have heard, "That was never in the bid." Put it in writing so there is no miscommunication. 

2. Payment Terms: Outline how and when payments will be made. There will be an initial deposit, progress payments tied to milestones, and a final payment upon project completion and satisfactory inspection.

3. Project Timeline: Specify the start and completion dates, including any deadlines for specific milestones. Include clauses for delays and how they will be managed.

4. Change Orders: Detail the process for handling any changes to the scope of work, including how they will be documented, approved, and the impact on the timeline and budget. This is a big one! Change orders will most likely happen! 

5. Permits: Clarify who is responsible for obtaining necessary permits! Contractors should do this, but to be safe, I would outline it in the contract. 

6. Termination Clause: If things don't work out, define the circumstances under which either party can terminate the contract.

7. Lien Waivers: Require the contractor to provide lien waivers from themselves and all subcontractors to prevent any future claims against the property.

The GC will provide you with a contract . 

 Hi did you close and if so how's it going ? 

 YES you 100% need PM. ( I know most happy to recommend) YES you need insurance. I have been doing biz out there for year, 100s and 100s and 100s of deals. I am happy to recommend, Contractors and PM. I closed last week on a SF just under 20% net cap, buying two more next week with similar numbers. Best part I live in FL, 

Good luck  

Hi Gina,

How are you purchasing these properties? Most lenders will require the properties to be purchased under an LLC. Even if you are purchasing using your own capital, I would suggest creating separate LLC's for each property! Happy to answer any other questions you may have. Feel free to reach out!

Best,

Gina,

The most form used to insure 1-4 family rental properties is a "Dwelling Fire" policy.  Some companies will use other names for it (ie. Landlord policy).  If the duplexes and the single family are all on separate parcels you can insure them on separate policies.  Some companies may offer to combine them on one policy.  Look at both options.  Sometimes, one company may be better on the single family and another better on the duplex.