All Forum Posts by: Parker Cox

@Andrew Greer  Looking forward to some brews with some bros...

Hi @Alexander Rolek  welcome to the community, I am sure you will have no trouble finding useful information and connections here.  

Every month my colleagues and I host a meetup for other investors and community members at a current active rehab/investment project.  

This month it is on the 23rd, from 9am-11.  check in with me in the next couple days for the address.  

This is a free event, no pitching...etc for everyone to dip a toe into the world and would be a great place for you to check out.  

also check in with @Tim G. for details and updates.

@Karl Farmer you have come to the right place. Also check out the monthly REIA meetings in San Diego...FIBI, SDCIA, NSDREI and we host an on location meetup once per month (last Saturday 9am - 11am). Keep tabs on @Tim G. and myself to make sure your included.  Its totally free, just a chance to meet other investors and see a project live in action with full details explained from acquisition to rehab to exit strategies.  

Best of luck

@Shan K.  I work in San Diego with more than 40 investors as their insurance agent, I see more than a flip a day.  

I don't know where this deal is (the better the area the better the scenario), but at first glance I don't think you should do it....unless 

What is your experience level?

When you say "cash deal" do you mean your cash or HM...etc?

what is your planned hold time?

This deal looks extremely tight to me.  If you are financing yourself, have an awesome, trusted contractor and know what you are doing, you can probably get in the 6-8% range.  

Its up to you if its worth it...

If your looking for deal numero uno...just keep in mind that the realtors in this deal are going to make twice as much you with zero risk if you are lucky enough to make your worst case scenario happen and make something at all...

best of luck 

@Sergio Sifuentes

As everyone has stated, you definitely need a Builder's Risk Policy for your side of things.  Talk to a couple independent agents, there are not a ton of options in terms of carriers, but you want to work with an agent who has some experience with Real Estate Investors.  

For your contractor-- Not only do they need liability and workman's comp, with you added as an additionally insured.  But, for greater protection--make sure you have a written contract, with a "hold-harmless agreement" in your favor.  Ask an attorney for specifics, but they are pretty common.   As well as his license #, then verify with the state (online) that his license is active.  

If you do that, you're about as well protected as you can be.  

Best of Luck

@Eli Kallison

With the right tenant and proper expectations up front (and maybe a little help from a friend or family member in the area) I bet you could get away with self management with less than a couple hours a month of attention on it.  

And, with a good contractor coming through I bet you could keep the house in working order for a year for a reasonable price.  But its a tough call for sure.  Hope it all works out!

@Eli Kallison I am certainly not you and it is you who has to decide.  But, from what I am reading my sense is that you are interested in traveling indefinitely, and want a stable (sustainable) lifestyle during that time, but your current intention is to eventually return home.  

My personal feeling is if you have roughly $1000 in cash flow/mo ($4000 rent- $2500 expenses -$500 for the unsuspected), fix up the house to avoid any major headaches while your gone, but rent it to a stable tenant (maybe a family).

In my mind, If you have done a good job of preparing/updating the house cost effectively and find a very solid tenant, you should have no problem being gone at least a year and that extra $1000 dollars a month will go very far in helping you start a free lance career...etc

And, on top of that, there is nothing suggesting the Southern Cali market will be dropping anytime soon, so if you decide to sell a year from now, you will have an extra 6-8% appreciation based on all current predictions.  

Best of luck

@Mackal Smith  I absolutely agree with @Jason Bott.  Its all about niches for the carriers.  Keep in mind, there maybe other factors that have gone into this price increase (age of property, type of structure, neighborhood...etc)

I am also curious if your previous policies for the smaller units are personal lines policies or even extensions of your homeowners policy?

If this is true, you may want to consider bundling all the insurance under your new commercial policy, the consolidation typically adds some savings...

Just a few thoughts. 

Best of luck with this and future ventures.  

If anything else comes up, don't hesitate to ask myself or Jason Bott--he is an excellent agent and far more experienced than me in the midwest markets.  

This is going to be an awesome event.  Thanks for putting your property up for us to come visit Andrew everyone is gonna learn a ton I have no doubt.

@Anne Wallace unfortunately, I have not heard of either company.  Thats probably just because of my location.  But if Mercury is available, I recommend them highly to all clients, their appetite is small-medium sized independent owners (especially small multi-family units). Allied is another national company with an appetite for portfolios like yours.  

If they are not available, just check out the financial rating of these carriers and make sure your agent properly dives into coverages.  

The vast majority of the clients I work with chose our firm over their previous agent simply because they had never gotten a proper explanation of their coverage and policy. 

It is a lot easier to justify insurance costs when you understand what you're getting in return.  

I know that is not hugely helpful and I apologize.  If you have anymore specific questions about things you see in the policy feel free to PM me and I will do my best to be of further service.  

Otherwise, congratulations on growing your portfolio and best of luck.