All Forum Posts by: Grant Shipman

I'm about to buy my first property! I have been working hard since January to become the best REI I can be, I have a partner who is qualifying for the loan and providing total cash needed, our strategy is buy and hold, the property has two houses on it, she will live in one house and a long term tenant will in the other house, and we will do a 50/50 split of everything (income, expenses, etc).

I want to have a strong contract between myself and my partner, so I know I will have to customize it to us.  Does anyone have a contract they could send me, so I have something to start from?  

Also, I'd love any other advice.  I am in the Denver Area and am new, so chime in with anything you think beneficial. 

@Jared Bouzek Thanks so much for connecting us!  Matt- I'll pm you.

I hope you both are having a good weekend!

@Antoine Thanks for chiming in with your thoughts.  I have similar thoughts as you as to what I want to accomplish with those two groups of people- what do you give/show these two groups of people to accomplish those goals?

I am an investor in North Colorado, but I'd like to purchase a primary residence in Wash Park.  I'd like to work w/someone who already focuses on this area.
 

I'm looking for good deals for the following in Wash Park to close on between now and November 1st.  

-Duplex

-Triplex

-Quadplex

-SFR with 4 or more bedrooms (or potential for bedrooms)

A funnel is a system of how your search starts with many potentials and funnels down to a few actuals.  This concept has been used in regard to finding deals a lot on BP.  I'm wondering if and how any of you use a funnel when searching for silent-partners to invest with.

-How do you first reach out to people? (for example, I call or message those I know and think may be good candidates)

-What do you communicate with your first contact?

-I'm interested in what you give or show to these two types of people:

1) Those who have expressed interest in being a silent-partner with you but don't know the first thing about REI.

2) Those you are interested in having as silent partners, and you want to introduce them to the idea. 

-How does your funnel end?

My funnel concludes with me asking for and receiving from the potential silent-partner: a completed balance sheet from my lender, last two years' tax returns, and credit score.  I pass this info on to my lender to see if the person would qualify for a loan that meets my investment strategy criterion.

I found myself developing some basic info to include in an intro packet (ie an email with links &/or pdf's) and a more complete packet (i.e. an email with more links & pdfs) for those who saw the intro packet and wanted more info to make their decision.  In the midst of this, I thought I'd ask y'all so as to not reinvent the wheel. 

Do y'all have a regular meetup now?  I am interested in how things are going in Cheyenne for y'all.

Wow- I had that wrong.  Thanks for your help, and I like your style @Mark Brick

@Mark Brick hmmm that challenges my thoughts from before, but that's how I learn.  The link below from State Farm website says that part of renters insurance is liability which covers property the policy holder (the tenant) damages that does not belong to the tenant (it gives the example of throwing a ball through a glass window).  Have you see different play out in real life or different renters policies that do not provide liability?

https://www.allstate.com/tools-and-resources/rente...

@John Mocker as a professional in the insurance industry, can you provide any clarity here for me?

@John Mocker what a helpful response! My current company is only me as a buy & hold 3-20 unit multifamily investor. I will form different partnerships (LP's or LLC most likely) with one other individual to purchase each property. All these properties will be managed by a 3rd party property management (not me). In this case, I understand your post as saying that I should consider the following insurance products:

1) Liability & Property (either a "PI Dwelling Fire Policy" or "BOP".  I should research these products in regard to Loss of Rents / Business Income; Contents (appliances in the units); Loss of Assessment; 

2) Professional Liability: you recommend b/c I would be taking on silent investors as partners correct?

3) Umbrella Policy: do you recommend this or do you recommend it based off certain factors?

4) Consider Flood or other insurance hail, tornado, etc.

5) Consider Builders Risk IF I am renovating a property before renting it out. 

And none of the following insurance products b/c I do not have anyone on the payroll nor manage the properties myself: workers comp, business auto, equipment.

I'll PM you like you asked to ask you more specifics about the Fire Policy vs the BOP.

@Mark Brick Thanks for chiming in.  If one of your tenants does not get renters insurance, what happens insurance-wise if that tenant leaves the faucet on in the sink and it floods the apartment and ruins the floors? 

I am new and wanting to build on a good foundation for purchasing 3-20 unit multifamily buy and hold- please chime in if you have helpful thoughts.  Please list the insurance policies / types of insurance I should consider and pros/cons & purposes.  Here's my list so far:

1) Property Insurance

2) Renters Insurance (require my tenants to have)

3) Professional Insurance for my legal entity (will be an LLC, LP, etc)

4) Umbrella Policy