out of state landlord
Builders Risk Insurance
Saturday, December 17th, 2011 | Builders Risk, California, Detroit, Flint, Georgia, Illinios, Indiana, Insurance, Landlord Insurance, Manufactured Home, Maryland, Michigan, North Carolina, Ohio, Real Estate, Vacant Home Insurance | No Comments
Example of a Builders Risk policy offered by our agency.
| Product | Builders Risk |
|---|---|
| FEATURES |
|
| COVERAGES |
|
| DEDUCTIBLES | Standard Residential- $500 Standard Commercial- $1000 Higher Options available |
| AVAILABLE BY ENDORSEMENT | Contractors Equipment Equipment Breakdown Environmental Umbrella Workers’ Compensation |
| Wind Buy Back | We now offer Wind Deductible Buy Back coverage on both commercial property and property in the Course of Construction. |
| Premium Financing | 10% Down, 10 Payments |
Unconventional Ways to Find Real Estate in Flint, Michigan
Friday, December 10th, 2010 | Flint, Insurance, Michigan, Mortgage, Real Estate | 1 Comment
If you’re a real estate agent in Michigan, you might think that times are tough. Slower markets than a few years ago and less clients can put any good landlord or agent in a difficult financial position. There are, however, some creative and unconventional ways to find real estate, which will see you weather the recessional storm with ease. Flint MI is the seventh largest city in Michigan – which means that if you’re new to real estate, it is small enough for you to find your footing, but large enough for you to have a wide and varied market.
Firstly you need an excellent marketing strategy. If you’re a good real estate agent, you will already have realised the potential of a diverse client base and target audience. A great way to get new clients is to run a seminar or talk of some kind in your local area. First time buyers often have lots of questions to ask, so they’ll be grateful of your advice and may even be potential new clients!
Keep business cards on you at all times – wherever you are, there could be a prospective client who will need your services. A magnetic car sign is also a great idea for those wishing to advertise their real estate website all over town. Once you’ve purchased the sign, you won’t need to spend any more on this marketing idea, so even if it only draws in a couple of clients, you won’t have lost out. It’s good to experiment with different strategies – as one approach won’t draw in 100% of your clients.
The population of Flint, Michigan is approaching 112,000, and average age of people living in Flint is just over 30 years of age. Your target market is out there. First-time buyers are itching to find a reliable, friendly real estate agent – all you have to do is market your services successfully and the clients will come to you. Why not check out some statistics for the Flint MI area online or in the local papers? It’s only through dedicated research of your target market, that you can begin to advertise your business accordingly. Whether you’re a landlord or an agent looking to sell a vacant home, apartment or condo, your marketing strategy will, more often than not, determine how successful your Michigan investment property or business can be.
Reap the Rewards of Being a Good Landlord
Friday, December 10th, 2010 | Detroit, Landlord Insurance, Michigan, Real Estate | 1 Comment
Michigan is a great place to be a landlord, particularly when considering that for the third consecutive month this year, houses sold topped 10,000, with the average house price rising by 8.5% from last winter. If prices keep increasing in this way, your investment property will be worth even more as time goes by. For example, Hillsdale County has seen a 34.09% increase in the average house sale price, and Battle Creek and the Traverse area both saw over a 20% rise from time last year. It’s important to look at these statistics when deciding to buy and sell, but it’s also vital to look at your current situation. Many landlords buy and sell, filling their houses with tenants, half-heartedly – paying no attention to whether those tenants are happy or not.
Why is it important to keep your tenants happy? If you’re letting out an apartment in Michigan – whether it’s in Traverse City, Detroit or Lansing – your tenants are your cash flow. The main reason people let out property is to make money and invest in their financial future – but many people make the crucial mistake of finding tenants and then thinking they can sit back and let the money roll in. If you’ve ever had to unexpectedly replace tenants, you’ll know that it takes up both time and money. Your tenant is your customer, and although they will be living in your house or apartment, you need to keep them happy to reap the rewards.
Being a good landlord means maintaining your property. If anything needs to be fixed in the house, fix it right away. Trust your tenant with your property. If you’ve vetted them to begin with, they won’t want you strolling past their house every ten minutes to check what they’re up to. If you refuse requests to upgrade, repaint or re-carpet a property (within reason) you are doing yourself no favours, seeing as you will have to do it to find new tenants anyway. If you’re getting confident and think that increasing the rent on your property in necessary, make sure that it is justified. If the tenant doesn’t want to pay the new amount, you will end up losing money looking for a new tenant anyway.
Although keeping your tenants happy is very important – you should never accept the first tenant that comes along. It would seem that filling a vacant property as soon as possible, regardless of the quality of your tenant(s) makes financial sense. On the other hand, you could lose out in the long run if you have to keep replacing lousy tenants.
Make Money – Investment Property in Detroit
Friday, December 10th, 2010 | Detroit, Insurance, Landlord Insurance, Michigan, Mortgage, Real Estate | 8 Comments
Are you looking to make money, invest in your financial future and have fun with real estate in Michigan? Most people want to know all the tips and tricks of the trade, but don’t want to put in the hard work and research.
Detroit is a great place to be a landlord – with the average price of houses per square foot up by 6% in comparison to this time last year. Statistically, when looking at the median sales price for homes in Detroit, Michigan this has increased by 20.2% on last year’s figures – which means that if you want to buy a house to rent or sell, now is the time to do it. If house and apartment prices keep rising with this trend you could make thousands of dollars – either by being a landlord, or simply by buying and selling property at the right time. Up and coming areas in Detroit MI currently are Indian Village and North Rosedale Park, where average listing prices are $263,523 and $73,656 respectively. If you’re looking for somewhere other than Detroit, Michigan, why not look into properties in Battle Creek, Flint or Kalamazoo – all of which are great potential areas for investment property.
If you want to make money from real estate in Detroit, but you don’t want the hassle of being a landlord, there are a few different ways. You can either choose to be a real estate retailer, or a real estate dealer.
Whereas retailers buy and sell investment property for a quick profit (for larger probable rewards), dealers buy and sell contracts. Real estate retailers obviously need more money to start out with in order to buy the property – they will need a large down payment (deposit) as well as a good credit rating.
However, if you choose to be a real estate dealer, you can find cheap properties and sign purchase contracts with the sellers. This assignment of contract means that you can sell the contracts on for a profit. The only cash normally required for such a transaction is the small amount of money for the deal – and you never actually own the deed. This is a creative and less risky investment for those who want to get a foot on the real estate ladder, but don’t have a good credit rating or enough spare cash to buy and sell properties.
Challenging Times and Valuable Opportunities:How to Take Advantage of the Current Economic Situation!
Tuesday, December 7th, 2010 | Insurance, Landlord Insurance, Michigan, Mortgage, Real Estate, Vacant Home Insurance | 14 Comments
We are all aware of the terrible shape that our economy was in. While it spelt doom for some, for some it was a great opportunity to invest and expand their horizons, most particularly in the Real Estate Industry.
In Real Estate, still as of now the prices of new properties are low compared to what it was worth some years back. Many markets having shown an improvement of late, so now would be a good time to get in Real Estate before the markets start picking up. In fact, this is a good time to secure your future with real estate.
Two words: Foreclosed properties
Even now there are a lot of foreclosed properties for sale and buying the right property for rental purposes at this time will be beneficial because in addition to bargain prices, you will have plenty of houses to choose from. The higher number of unsold houses and low mortgage values will mean good bargain prices. Furthermore, the strict appraisal process for acquiring a loan that is now in place has helped keep prices low, thus investing into Real Estate is a very good choice at the current economic situation.
Try out in new markets
If you want to truly take advantage of the current situation, explore the non conventional market like in smaller cities where the markets have not started to or are in the process of picking up.
This is because the entry cost i.e. the initial capital required, is low compared to properties in larger cities. This is a good time for you to hone your investing skills.
Look at alternatives
If you don’t think you can have the stamina to become a landlord and don’t want to be bothered tenant troubles, than you can invest in real estate investment trusts, REITs, or buying shares in home building and associated businesses. With REITs, income is acquired through rents and thus the value of REIT stocks increase with increase in rent over time. Furthermore, REITs give you access to large scale real estate projects which are normally not in the reach.
Mortgage Banking Activities: Spearheading the Income Generation in USA!
Tuesday, December 7th, 2010 | Mortgage, Real Estate | 13 Comments
Commercial mortgage banking refers to the process of acquiring a land or building or any property for the purpose of doing business. Commercial mortgage banking offers easy, simple and flexible options. These consist of two options: Fixed Interest rate or Variable Interest rate. Variable rate is subject to change in Federal Reserves, inflation and the pace with which the economy is growing.
After the credit bubble burst of 2009, Mortgage banking has been labeled negatively as an income generating resource but now the mortgage market is back on track and steadily and firmly rising. According to Census Bureau, construction spending has risen 0.7 percent in the October compared to September, despite continued weakness in the single-family sector. New construction will mean new houses which will lead to stronger real estate market and subsequently, stronger mortgage banking need. That is why Mortgage Banking will spearhead the Income Generation in USA.
Benefits to the Individual:
The individual maintains the ownership of the property instead of losing it and going through interest in the property. The lender which is the bank does not own the property in question and instead only works as the lender and hence cannot interfere. It only does so when the borrowing individual defaults. The biggest benefit is that the borrower holds the right of benefits of ownership.
Benefits to the Investor:
Due to easy plans for down payments, unlike in traditional banking, the investor can make minimal down payments and still have access to the capital. Mortgage Banking plans increase the leverage as it allows time to pay attention to other matters since the plan is set accordingly. More importantly, the tax benefits that it gives can be availed as the interest payments which one pays on the principal amount is tax deductible.
Benefits to Bank:
Since schedules are determined prior to the start of initial down payment, managing money is easier and is done in a predicted pattern. Mortgage Banks still enjoy the legal ownership of the property as a security. Furthermore, since these plans are made to ease the payment, the chances or defaulting fall, due to which the bank forms a good credit history and thus enhances its credibility.
Top Tips to Become a Landlord in Michigan
Saturday, November 27th, 2010 | Detroit, Insurance, Landlord Insurance, Michigan | 8 Comments
If you are interested in the investment property sector, becoming a landlord in
Michigan could be a great way for you to exercise some entrepreneurial spirit.
The two most important things once you are leasing a property to a tenant is
to ensure that your activity is profitable, and that the organization of the lease
is efficient. This way, you will have a satisfied renter and the scope to develop
the portfolio you have.
Of course, you can’t be a landlord without having the renters to live in the properties
you have. As a property owner, you have the chance to be selective over who
you choose as a renter – however, the qualifications you consider are restricted to
whether they are in employment with a consistent income to pay their rent at the
end of each month. Because of the laws in the US that govern Fair Housing, you
are unable to discriminate against prospective tenants because they have children,
a disability, or because they are from an ethnic minority – and so you may be
penalized for doing so.
Following on from the subprime mortgage crisis, pricing is a real sensitive issue
amongst those looking for vacant homes to rent in Detroit. Because of this, you need
to ensure that your rent prices are competitive yet profitable. It’s a difficult balance to
achieve – and browsing through rental properties online and in newspapers will give
you a strong idea of the asking price in the area of Michigan you live in.
The next piece of advice is to ensure that you know what to do if your apartment or
house has an emergency – such as a malfunctioning toilet. In these situations, you
need to be reactive through repairing it yourself or having the contacts of someone
who can.
If this is your first time as a landlord in MI, it will be a learning curve – and you have
to treat it like one. It can be a rewarding and profitable role to have full time, or a
great form of supplementary income if you are in another job. Do remember that
talking to other landlords for their first-hand experience and advice is a great idea,
as it will enable you to start leasing out your properties on the right foot. Through
making sure your properties are presentable and well-advertised, you’ll be a landlord
in no time!
Vacant Homes in Michigan: Things to Consider
Friday, November 26th, 2010 | Detroit, Insurance, Landlord Insurance, Michigan, Vacant Home Insurance | 11 Comments
Vacant homes in Michigan’s leading cities are on the rise, and this is due to an 11% decline in the population in the past 20 years. However, even though the increased supply of vacant homes in Michigan is great news for landlords and tenants alike, it does create some additional considerations for property owners with vacant properties.
If you are a landlord currently looking for a tenant, a big question is this: do I need insurance for my property? In short, the answer is yes – particularly because of the risk of vandalism, break-ins, and of the house deteriorating quicker if it isn’t maintained appropriately. Some would argue that the requirement for homeowner’s insurance if you are a landlord waiting for a renter is subjective – especially if it is likely you will find a tenant in the immediate future.
Indeed, there are some alternatives to consider that will resolve two problems simultaneously. By making your house look occupied, you will reduce the chance of break-ins on the basis that the property appears to be vacant. In addition, should you have any viewings from clients who need an apartment in MI, your property would look more presentable – and the chances of a successful deal being struck would rise.
So – how do you make your property look occupied? Hiring someone to clean the house or maintain the garden is a great start. If you are going to own vacant homes in Detroit over the long-term, the insurance premiums you would have to pay to protect the property would be reduced because of the effort you are making to reduce risk. You might wish to invest in security systems throughout the property such as surveillance cameras and a home sprinkler device – all steps that will be advantageous to security-wary clients you may receive later on.
Should insurance seem like an option you need to consider seriously, do remember that you have the opportunity to compare and contrast the different policies that insurers can offer you. At least if you need to get your vacant home covered, make sure it is with an insurance provider that offers good value for money.
Hopefully, you won’t have a vacant house for too long. However, while you do, make sure that you are insured, as covering the expense of unfortunate circumstances yourself could cost you far more than you might expect.
How many homes are vacant in Detroit?
Tuesday, July 27th, 2010 | Landlord Insurance, Vacant Home Insurance | 23 Comments
There are a lot of investors looking at Detroit as a great place to buy cheap real estate. The thinking is if you can purchase a home with renovations included for $35,000, you can quickly turn a profit. Most homes in Detroit are brick, beautiful, 2 stories, and usually over 2,000 sqft. As a section 8 property the going rental rate is between $1000-$1400 a month. That is roughly $12,000 a year. In three short years the property would be paid and any future rental income would be 100% profit with the property having a resale value of about 50,000 if rented with a good tenant. Sounds great.
There’s only a couple of problems we even want to address here.
The first is insurance and taxes. With insurance rates ranging from $800-$3,500 a year and property and city taxes costing another $3,600 a year. There is a potential $7,000 a year in additional overhead. That’s not to mention theft, vandalism, arson, and tenants having to be evicted for various reasons.
The second is vacancy. According to Wikipedia, “The 2009 residential lot vacancy in Detroit was 27.8%, up from 10.3% in 2000, with the population continuing to shrink and foreclosures that exacerbate the problem.” So you have to ask yourself, “Who is going to move into my property? Is there anyone out there looking for a place to live?” It’s the classic supply and demand conundrum. Too much supply, too little demand.
Because of the economy, the shrinking and closings of the Big 3 auto and its suppliers, and enormous amounts of vacancies, the city of Detroit struggles to provide services and educational systems that can compete with many suburbs and other metropolises. Vacancies reduce taxable income and increase crime rates which puts an enourmous strain on public services to provide adequate resources. This only leads to more crime and reduced resources available to the communites they serve.
For Detroit to become a competitive city again this blogger believes they have to shrink the city back to its core and build from the middle out. Reduce inventories by eliminating vacant homes on the outlying areas and build from the center. Make it desirable and condensed. Not sure how that plays in politics but it does work for most other major corporations. When income is down, downsize.
As a side not, the deflating real estate values in the city of Detroit have spilled out to the suburbs which has created great investment oppurtunities. Some of the reasons for the rate of vacancy in the city is that more people can afford to move to the suburbs due to the deflated home values and rental rates.
Would you trust your family practice doctor to perform heart surgery?
Tuesday, June 22nd, 2010 | Landlord Insurance | 20 Comments
Landlord insurance is a complicated insurance contract. Homeowners are usually written on a HO policy form which is a broad form policy. A broad form policy is a “if it’s not excluded, it’s included” policy. That means a loss will be paid unless it is excluded in the contract. Landlord policies are dwelling policies and are usually written on a DP policy form which is different from a HO policy. DP policies are either basic or special. Basic and special have limited coverages. They are a “if it’s not included, it’s excluded” policy. That means the claim has to happen in a way that the policy lists as an included coverage. As you can see, that leaves a lot of open gaps that a homeowner policy doesn’t have.
A DP1 is a basic fire policy and does not cover wind, hail, vandalism, malicious mischief, burst pipes, or theft unless it is added to the policy as an endorsement. A DP3 does usually cover wind, hail, vandalism, malicious mischief, and burst pipes unless it is excluded. The reason dwelling policies are more expensive and have less coverage is because of the unknown factor of the tenant.
An insurance company when writing a landlord policy not only has to take on the risk of the homeowner and the property but they are also insuring the tenant in a way. The tenant could cause a fire, flood, vandalism and the insurance would have to pay a major claim due to a property being rented to an unreasonable tenant. Just like landlords usually don’t see a bad tenant coming in the door when they rent the property and the insurance company has even less knowledge of the person living in the home.
Our point is if an agent is very good at writing homeowners and auto insurance policies may not have the product diversity or product knowledge to give you the coverage you want and need. Some investors are more concerned with cash flow and have a lot of liquidity and are only looking at coverage for major catastrophic claims and they want to handle the smaller repairs on their own. They could buy a stripped down policy for minimal cost and maximize cash flow. Another property owner may be an accidental landlord because they had to move and couldn’t sell the home so they decided to rent it out. That person may need a more comprehensive policy because of lack of experience as a landlord and limited liquidity. The insurance policy will cost more but it provides a greater breadth of coverage to protect the landlord from a potential loss even if it is small.
Sometimes it is better to let the family practice doctor handle the sniffles and the heart surgeon to do the bypass. Sometimes its better to go to a clinic that has different departments that way your records and care is more closely coordinated. Just some food for thought (with a lot of fiber, of course).
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