All Forum Posts by: Ken K

I haven't been able to find many companies that will issue RC on a rehab in PA. In this particular case . . .

190K ACV + 1M Liability Builder's Risk with Erie is $60 per month

150K RC + 1M Liability Builder's Risk with NREIG is $125 per month

If Erie would consider the ACV of the existing house to be at least 75K, the coverages would appear to be similar, because the ACV of any improvements would seem likely to be the same value as RC.

Thanks again. You've been very helpful.

That's a very thorough and informative reply. Thanks for that. In this case, the construction is frame, so on a 190K policy its ACV is about 85K. A few questions . . .

1) Would the insurance company pay out 85K even though it was purchased for 75K?

2) As the rehab proceeded I presume that the ACV would increase, is that correct?

3) If so, how might the increase in value be calculated in the event of a total loss?

Might anybody venture an estimate on this? . . .

1) a 60 year old house in dated but reasonably good condition is purchased for 75K

2) the insurance agent's system determines that the correct replacement cost value for that square footage in that location is 190K

3) it's insured for 190K, but with Actual Cash Value coverage

What amount might be paid by the insurance company if it was a total loss shortly after it was purchased?

Any opinions would be much appreciated. Thanks.

Ken

Thank you all for your input.

If I do direct mail to find investment properties for myself, would I have to disclose on the mail piece that I'm an agent?

> Once you have one, it's like "why would I give this away"?

I don't know how much time and effort is involved in being a seller's agent and making a fair effort to try to sell their property via open houses, etc. I was thinking in terms of handing those responsibilities over to another agent and spending my time concentrating on trying to find rehab deals and rehabbing them.

> 25% of just the listing side. You're not referring the buyer to them, just the seller.

That would make sense. Thanks.

> The normal referral fee is 25%

Would that be 25% of just the listing commission, or also 25% of the selling commission if Broker B sold the property?

> why would you give the referral to a different co?

I might want to give the referral to agents who have helped me in the past, or who are particularly active sellers in the area of the lead. They may not always be agents of my broker.