Get your multifamily insurance quote in 60-seconds or less!

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This Money Monday we will be walking through a tool that will help you to accurately identify your cost for multifamily insurance and how this will play into underwriting your next deal or investment! Join the conversation and bring your questions.

VIDEO TRANSCRIPTION

00:08
monday is 3
00:09
30 central welcome back everybody to the
00:12
latest and always the show that we’re
00:14
doing is always the latest i can say it
00:15
every time
00:16
to our latest version of money mondays
00:18
our latest episode of money money there
00:20
you go there you go
00:21
we try to keep it fresh every week is
00:22
what you’re trying to tell me right
00:23
absolutely and
00:24
i just totally we try to have a brand
00:26
new break really expensive microphones
00:28
i’ve probably heard they probably heard
00:30
that quite a bit on there but that’s all
00:31
good
00:32
people you know i was getting excited to
00:34
make ben by that one a lot more arm
00:35
gyrations than normal everybody
00:37
so sir so monday monday every monday 3
00:39
30 central we typically do a lot of
00:41
different topics if you have ideas for
00:42
future topics let us know
00:44
otherwise we will guess at a topic that
00:45
we think you may or may not like but if
00:47
you prefer
00:48
like you gotta let us know we’re
00:50
throwing a dart at certain things and
00:51
just being like all right let’s talk
00:52
about this this week
00:53
but today’s episode ben what are we
00:55
talking about so we’re talking about
00:57
underwriting right and how
00:58
insurance pertains to our underwriting
01:01
process right and
01:02
you know some cool tools that we’ve kind
01:03
of helped develop and absolutely we want
01:05
to kind of show and share with our
01:06
audience right because we think they’re
01:07
pretty cool
01:08
and they’ve really you know i i guess
01:11
decrease
01:11
the amount of errors that we’ve made in
01:13
our insurance quoting process right
01:15
because you got to think about the you
01:16
know what’s happening right not
01:18
everybody’s going to be looking at this
01:19
during
01:20
business hours right imagine you’re up
01:22
at friday nights
01:23
10 o’clock just like i do i have no life
01:25
whatsoever and i’m underwriting deals
01:27
right i’m looking at five deals right
01:30
and there’s some important pieces of
01:32
data that you need to be able to
01:33
underwrite it right
01:34
maybe you can make assumptions on oh i
01:36
can get utilities down five percent
01:38
or payroll looks a little high you can
01:40
make those adjustments on the fly
01:42
right but the two things that you’re
01:44
really going to need to sure up
01:45
um is going to be the insurance and then
01:47
the debt absolutely speaking to one of
01:49
the debt guys right
01:50
he mentioned one of the first things he
01:51
has his team do is actually
01:54
be candid with the owners or the buyers
01:56
you know of hey where did you get your
01:58
your insurance quote right because it
01:59
does have a big impact on no it
02:00
absolutely does i mean it can kill your
02:02
loan because you know insurance
02:03
and it’s not about just doing what the
02:05
guy before you do right a lot of times
02:07
you see that right especially now we’re
02:08
looking at bigger or more institutional
02:10
quality assets and those guys might have
02:12
ten thousand units on their insurance
02:13
policy that’s amazing
02:14
they can get a better rate than most
02:16
individual guys so really understanding
02:19
insurance and how that can impact your
02:21
proceeds really matters right and maybe
02:22
one more thing and then i’ll turn it
02:23
back to ben is
02:25
similarly even you know thinking about
02:27
all aspects of insurance right including
02:28
flood
02:29
right we’ve we’ve significantly boosted
02:32
the valuation on some of our properties
02:33
by
02:34
getting rid of the flood issue yeah
02:36
right so again every little dollar here
02:38
there of insurance actually turns into
02:40
an 8x 10x multiple on valuation so
02:42
really something to be conscious of
02:44
and we’ll give some shout outs to some
02:45
of our vendors right you know i mean
02:46
these these guys have
02:47
and gas have saved us a ton of money
02:49
right i think
02:50
i wanted to hit on that one point though
02:52
people underestimate how important this
02:54
is right
02:55
the one thing that the the the lender
02:58
mentioned on our on our
02:59
on our celebratory dinner last night
03:01
right was you know
03:03
thanks for a smooth kind of closing
03:04
process and part of that
03:06
was making sure that we had the
03:07
insurance because the insurance in a lot
03:08
of ways
03:09
can blow up a deal blow up the closing
03:12
right not only is is
03:13
are typically the insurance agents the
03:14
slow ones right but they’ll have errors
03:17
in their paperwork
03:18
right they’ll need to be a lot of back
03:19
and forth right that insurance review
03:21
process can be a real pain
03:22
and it can ultimately delay closing
03:24
right and then ultimately sometimes what
03:26
ends up happening is that your insurance
03:28
number comes back high
03:30
right and you then you have to make you
03:32
know some kind of a sacrifice to the
03:33
type of insurance that you do have right
03:35
your deductible has to go up
03:37
you know maybe you’re waiving some
03:38
things that you should not wave on the
03:40
insurance and what it will cover
03:42
so you need to understand you need to be
03:43
working with a legit shop that has a
03:45
good insurance product right
03:46
i’ve been what’s up buddy i’m waving
03:48
you’re waving at me
03:50
okay that’s kind of weird that you
03:51
should i should not wait never mind
03:52
you’re getting weird
03:53
dude you’re getting weird all right
03:55
let’s get to the let’s get to the fun
03:56
stuff right
03:57
so quote dot strategic
04:00
insurer.com q
04:04
dot strategic insurer.com i want you
04:06
guys to bookmark this i want you to
04:07
check it out
04:08
if you’re in texas or oklahoma they’ve
04:10
got a competitive quote for you
04:13
right you know houston dfw central texas
04:16
oklahoma
04:17
this is where this guy’s built the the
04:19
tool for and they’re doing a great job
04:21
absolutely there’s something put
04:22
together right i mean we kind of saw the
04:24
pain here and really again i’m a big
04:26
software guy if you guys don’t know
04:27
right and insurance should not be this
04:30
mystical thing
04:31
right and ultimately we’re able to kind
04:32
of work with them to help get a tool
04:34
built that automates the quote right
04:35
pretty much to the t
04:37
yeah plus or minus one percent i think
04:38
so yeah so this is really just to kind
04:41
of you know within five
04:42
minutes have a fully fixed quote so it’s
04:43
something that we’ve baked into our
04:44
underwriting process
04:45
and basically any deal we’re
04:46
underwriting we run it through this and
04:47
just kind of get that pulled in so
04:49
yeah we we’ve baked it into our
04:50
spreadsheet right and you can absolutely
04:52
do that
04:53
right you know i’m sure the guys even at
04:54
strategic will help you integrate
04:56
that you know they love they love the
04:57
tools they love ultimately helping their
04:59
clients right so
05:00
let’s talk about it i’ve so i’ve gone to
05:02
the website now right you know
05:04
strategicinsure.com let’s get an instant
05:06
quote right so this is how this is how
05:08
easy this is right and i’m just going to
05:09
plug in some numbers let’s get started
05:11
right how many units 136 okay i’m just
05:14
pressing enter here
05:15
uh average square foot let’s just know
05:17
the quote so easy a caveman can do it
05:19
ah that’s funny so average rent per unit
05:22
right then
05:23
hey houston right
05:27
next tell us about the amenities all
05:29
right let’s continue right are there
05:30
pools there is
05:32
all right are there fitness centers
05:34
there’s not
05:35
right or maybe there could be who knows
05:37
right are there sports courts right
05:39
you know you don’t want to have sports
05:40
going to the houston deal i don’t know
05:41
well no
05:42
but but i’m going to say you don’t
05:44
really want a sports court and i’m going
05:45
to tell you why that has a tendency for
05:47
folks to just loiter and hang out and
05:49
you know it tends it’s not as it’s not
05:52
as great of an amenity as you’d think it
05:53
would be right so let’s press
05:54
no because we don’t like to have those
05:56
great amenities people abuse it
05:57
well okay that’s maybe yeah all right or
05:59
is there any cover parking so yes
06:01
let’s just say yes perfect you’re all
06:03
done continue
06:04
right where should we send the quote
06:07
so let’s go to ben suttles right oh i
06:11
don’t even know how to spell my own name
06:13
geez don’t laugh that does not work very
06:15
well under pressure
06:16
okay everybody’s watching me so all
06:19
right
06:21
ben’s phone number there i know right
06:23
now i was like oh this is going to be
06:25
recorded
06:26
right you want his email address go
06:28
ahead and that file all complaints
06:29
there all right so i’m nothing fun and
06:31
exciting to talk about feel free to
06:32
email me instead
06:34
boom all right so this is under contract
06:37
renewal
06:38
just looking right so they’re obviously
06:39
looking for you know where are you at in
06:41
the process let’s say we’re under
06:42
contract right okay
06:44
when is the expected closing date let’s
06:45
go zero five
06:48
thirty one twenty twenty one last step
06:51
boom submit all right last step click
06:54
here
06:55
and actually now at this point you get a
06:57
text already so
06:58
all right i already got a text in the
06:59
pricing at this one now if you need
07:01
something more formal for your lender
07:03
right that’s where you can go through
07:04
this last step alright so i’ve got i’ve
07:06
got my cell phone here folks
07:08
we’re going to time this thing right
07:10
we’re going to call it probably the next
07:11
30 to 60 seconds
07:12
you know we’ll get a text message with
07:14
your per door quote
07:16
right and then on top of that you’re
07:18
also going to get an email right
07:19
the guys at sig also wanted to have you
07:21
if you wanted a more formal quote right
07:23
you click this button that i’m going to
07:25
show right here
07:26
shanna if we could just so we could go
07:28
show this
07:29
right just a couple extra steps
07:33
all right let’s get a formal proposal
07:36
all right
07:36
this is really yeah this is only if you
07:38
need that extra step to get property
07:39
name
07:40
the lender so right porter wood right
07:42
this was the deal that we talked about a
07:43
couple weeks ago
07:45
uh one two three usually i have all the
07:48
addresses memorized but this one
07:50
it’s got a lot of numbers in it so i’ve
07:51
never really let’s just uh i know it’s
07:53
in houston
07:53
[Laughter]
07:55
not no you actually got that wrong too
07:57
because i think it’s not even
07:58
a greater msa all right you know all
08:01
right so then we’re gonna go here
08:03
okay correct email address yes it is
08:06
okay
08:06
submit boom all right
08:10
so now what’s happening is you’re going
08:11
to get a formal proposal right this is
08:13
something that you can
08:14
give to your lender you can provide to
08:17
your team maybe you’re the one that’s
08:18
running point on insurance
08:20
right and you can ultimately see all the
08:23
great things that are wrapped up in it
08:25
right
08:25
you know all right so we’re getting
08:28
close here
08:32
let’s go over to the emails
08:35
so um so talk to me about this man
08:40
you know um so
08:43
monday mondays through this every monday
08:45
3 30 central we are talking about
08:48
multi-family underwriting specifically
08:50
about using the insurance tool to
08:52
continue
08:52
let’s we already know that we already
08:55
know that
08:55
tell it to the other people no all right
08:57
so you know the point of
08:59
us showing you this folks is that i want
09:01
you to be an underwriting machine
09:04
right and in order to be an underwriting
09:05
machine you need to be able to automate
09:07
parts of this process right you don’t
09:10
rules of thumb are great right and for
09:12
full disclosure we do use michael block
09:14
sheet
09:15
it’s got a lot of great rules of thumb
09:17
but it’s not indicative of cross
09:19
you know everything in every part of the
09:21
country and every property right
09:22
so you need some more accurate data
09:25
right and this is one thing that will
09:26
give you the accurate data
09:28
right so you know something to kind of
09:30
keep in mind right
09:31
so this tool is something that’s going
09:33
to be able to spit
09:34
things out and maybe you’re trying to
09:37
exercise it five different times right
09:39
you know uh the guys at sig are not
09:41
gonna care
09:42
so all right so here we go
09:46
boom i’ve got my quote here
09:49
per door 583 you know gives the
09:52
breakdown property gl
09:53
and umbrella for a total premium of 79
09:56
uh 79
09:57
300 right once again this was just an
09:59
example deal and let’s pull up the pdf
10:01
so
10:02
all right there’s gonna go well so
10:04
there’s an email that you get with a pdf
10:05
that’s again a nice little
10:06
boom that’s there too and to send to
10:09
your uh lender so go ahead
10:10
all right so we got a formal proposal
10:16
here
10:19
all right we got it shannon if you want
10:20
to show this right so
10:22
this is more of a you know more formal
10:25
right and it’s going to talk about what
10:26
what does the sig
10:28
insurance policy include right i think
10:30
there’s one thing that i wanted to talk
10:31
about because i was
10:32
in the dark for a lot of years about how
10:34
the insurance process worked right
10:36
you know there’s a lot of squirrely
10:38
things that insurance agents do these
10:40
days right
10:41
when they’re not disclosing a lot of
10:43
this or explaining a lot of this
10:44
to their clients right and that’s where
10:46
the sig guys do a great job
10:48
they are educators in a lot of ways you
10:50
know just as much as their
10:51
insurance guys and so they’re showing
10:54
what is included
10:55
what’s compliant with fannie and freddie
10:57
which a lot of us are looking at fannie
10:58
and freddie deals
10:59
right and you know ultimately stuff and
11:02
explaining the whole entire process
11:04
soup to nuts right you know you need to
11:06
have something like this
11:08
from your current insurance agent if he
11:11
or she
11:11
is not prepared to provide you something
11:13
like this and
11:14
it doesn’t have to be as fast as what
11:16
these guys did right you know obviously
11:17
this is kind of
11:18
a little bit bleeding edge but they
11:20
should be able to produce this
11:21
for you within a few days right with
11:23
this level of breakdown
11:25
right what’s included what’s not what
11:27
are the deductibles you know that whole
11:29
entire thing
11:30
what’s fannie and freddie required right
11:32
and all the things that are
11:34
right so you got to understand that this
11:35
is you know important to
11:38
let your lender know right and once
11:39
again let your team know
11:41
so as easy as that right i got a text
11:44
message
11:45
i got two emails one with a formal
11:46
proposal and it took
11:48
three minutes five minutes stops right
11:51
and it’s done
11:52
right and once again you can run this is
11:54
when you can start running some numbers
11:56
folks
11:56
this is a numbers game we’ve told you
11:58
this a million times if you take
12:00
anything away from these videos it’s
12:01
that
12:01
you have to get into the game you have
12:03
to take action and you ultimately have
12:06
to run some numbers because
12:07
you’re gonna have to look at 100 deals
12:09
to get one under contract and get to
12:10
close
12:11
right so you do you want to be hitting
12:13
up your insurance agent for
12:15
quotes 100 times you think how quickly
12:17
are they going to get burned out on that
12:18
right and then you’re going to go to the
12:20
bottom of the pile so this is the other
12:22
reason why
12:23
these guys helped develop this uh is
12:25
because they wanted you to run numbers
12:26
and get something that’s
12:27
semi-accurate once again texas and
12:29
oklahoma this is where these guys live
12:31
this is you know where they’re gonna
12:33
shine but you know they’re telling me
12:35
they’re trying to expand it
12:36
you know out to georgia you know maybe
12:37
along the gulf coast
12:39
you know so you know obviously we’ll
12:40
keep you posted on that but
12:42
for right now if you’re if you’re
12:43
looking at deals in texas at oklahoma
12:44
you need to be using this tool yeah
12:46
you know that’s the bottom line i
12:47
totally agree so money
12:49
monday is every monday 3 30 central
12:52
and if you have any comments questions
12:53
go ahead and leave them we will go to
12:55
the q and a so usually we’ll just go to
12:57
presentations then we you know we’ll
12:59
ship the q a so if you have any comments
13:01
questions go ahead
13:01
it feels really weird like i’m typically
13:03
you’re the one that’s always on the
13:04
computer
13:05
like i just feel like i’m kind of boxed
13:06
in here man i don’t know
13:08
probably for the better so uh let’s see
13:11
so any comments
13:12
questions so let’s see our buddy ronnie
13:15
says what’s up guys we’re standing rock
13:17
what’s up buddy here you’re getting uh
13:19
the other the other
13:20
you know they’re getting the the other
13:22
part of the guys i guess
13:25
we know a thing or two change or
13:26
whatever um
13:28
let’s keep going then so jefferson says
13:30
how are you doing ferris and ben we’re
13:32
doing well
13:32
what’s up buddy we appreciate you tuning
13:34
in jefferson you you and ronnie
13:36
thank you to the tool
13:37
q.strategicinsurer.com that’s
13:40
strategicinsurer.com
13:42
yes and uh tim vitale says that’s
13:44
awesome you’re welcome
13:46
carlos says that it’s great how much
13:47
will they the premium fluctuate
13:49
historically once policies actually sold
13:50
well that’s the thing so it’s a fix it’s
13:52
a fixed rate fixed rate so pretty much
13:54
very little it’s like no point yeah plus
13:57
or minus one percent so it’s actually
13:58
meant to be a real quote
13:59
yeah so i mean it’s
14:15
dan is it has been our insurance guy
14:17
since the beginning
14:18
he i’ve known dan for six years great
14:21
guy
14:22
um just a savant when it comes to this
14:24
stuff and can rattle it off and really
14:26
educate you on the nuances of insurance
14:28
right and i think it’s important because
14:30
we pay a lot for this everybody right
14:31
it’s like taxes you know
14:33
that’s one of our biggest expense on
14:35
these properties and a lot of people
14:36
just don’t understand it
14:37
right and they just are just taking it
14:39
for granted and there’s a lot of things
14:41
that can fluctuate the numbers and
14:42
things that
14:43
when you go to file a claim you realize
14:46
oh
14:46
crap you know my insurance agent didn’t
14:48
tell me that i wasn’t covered for this
14:50
and so therefore you got to come out of
14:51
pocket right we’ve seen deductibles that
14:53
have been a million dollars in
14:55
occurrence right what does that mean
14:56
that means you’re essentially
14:57
self-insuring right that means that any
14:59
claim that you’re gonna file
15:01
if it doesn’t hit above a million bucks
15:03
guess what
15:04
you’re paying that out of pocket and so
15:06
you know
15:07
and and that’s what some of these
15:08
insurance agents are getting away with
15:10
it’s it’s highway robbery it’s it’s
15:11
crazy
15:12
totally great so what else we got any
15:14
other q and a
15:15
any other comments questions if you do
15:17
have comments questions go ahead and ask
15:18
them we will answer them and if not then
15:20
we will not answer them or ask them whoa
15:22
whoa whoa
15:23
well it doesn’t have to be about
15:24
insurance right yeah the q a can always
15:26
be about anything you guys want to talk
15:27
about right real estate related
15:29
entrepreneurial related you know what
15:31
are we doing
15:32
we’re going we’re finally traveling too
15:34
yeah excited about that
15:35
where are we going this week dad we are
15:37
going to sarasota for rod klies morgan
15:40
some of those i don’t know where that is
15:41
yeah you know so we’re excited about
15:43
that getting back on the road
15:44
then the following week we’re going to
15:45
secret x costa rica oh
15:48
you know so if for people that have been
15:50
on the fence about going right these
15:52
guys put on a great event so does rod
15:54
you know something to kind of think
15:55
about do you miss traveling and
15:57
networking no we absolutely do
15:58
both of us got our shots so we’re good
16:02
you know so let’s see so that said uh
16:05
let’s see the question
16:06
are these quotes for commercial
16:07
insurance in general it’s only
16:08
commercial insurance yeah
16:09
yeah no this is not right so yeah and
16:12
not even
16:13
it’s just it’s just multi-family right
16:16
so
16:16
well yeah that’s actually a great
16:17
question i’m glad that somebody brought
16:18
that up right you know this is just for
16:20
multi-family insurance
16:22
so all right so let’s see any other
16:24
comments
16:25
questions if not we can continue let’s
16:27
keep going let’s keep going
16:29
all right man so we’re going to go back
16:31
to
16:32
back to reality
16:39
i’m a great singer let it go buddy all
16:42
right so we’re talking tool kit
16:44
boom disrupteequity.com
16:47
toolkit this is where all of our
16:49
checklists all the tools all the
16:51
websites all the podcasts everything
16:53
that you’d want
16:54
all condensed into a checklist that
16:56
shannon does a great job curating and
16:57
keeping up to date
16:58
right so we’d like like you to check
17:00
that out right
17:02
you know um what else we got going on
17:04
what are we talking about next week man
17:05
10 myths of multi-family real estate
17:08
investing
17:08
oh oh and there’s a there might be more
17:11
than 10
17:12
but a lot more number one top ten
17:16
is it a quick
17:20
so yeah lots of different myths and if
17:21
people have myths feel free to bring
17:22
those as well
17:23
like i think i think people love this
17:25
type of stuff right it’s it’s all about
17:26
kind of opening up the kimono and saying
17:28
hey you know
17:29
these are the things that people might
17:30
tell you that aren’t necessarily true
17:33
right and i think the biggest one is is
17:34
that you do a deal or two and you’re
17:36
gonna retire right
17:37
it’s not like that folks right you’re
17:39
not making millions and millions of
17:41
dollars off of one deal
17:43
right if that was if it was that easy
17:44
and everybody was doing it you know
17:46
there’d be a lot more people
17:47
than there already is in the space so
17:50
you know we’ll kind of do that i’m
17:51
actually excited about that one because
17:52
there’s a lot of that
17:53
going around you know um and we’re doing
17:56
this in between
17:57
yeah so we are committed to money
18:01
mondays
18:02
and keeping you guys up to speed on what
18:03
we’re doing on to the following monday
18:06
we decided to probably just stay in
18:07
costa rica we might have
18:08
a few days right so maybe ben will do
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that one solo
18:13
i’m just going to stick around costa
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rica um yeah so let’s see so if anyone
18:16
has any more comments
18:18
questions come on no more comments or
18:20
questions one question is
18:21
what has been the price per unit for
18:22
insurance lately can you talk a little
18:24
bit about
18:25
that i know it will depend on a lot of
18:27
things it does depend on a lot of things
18:29
i think
18:29
it’s very location specific vintage
18:31
specific
18:32
we know for a fact just because of some
18:34
of the storms that have happened in dfw
18:36
and in
18:37
san antonio in those types of areas that
18:38
insurance is going up right they’re
18:40
going to get their pound of flesh
18:42
right but just assume that insurance
18:43
across the board is probably going to go
18:45
up this year in texas as well because of
18:46
why
18:47
because of our ice storm ice storm so
18:50
they paid out
18:51
billions and the insurance companies are
18:53
a for-profit
18:55
business but to answer the question i
18:56
mean you know we’re seeing anything from
18:58
350 to 600 a unit really depends on a
19:01
lot of things right yeah
19:02
and so the size of the united states you
19:05
guys know a skyscraper that’s probably
19:07
worth 10x an apartment is probably
19:09
a fourth of the insurance costs right so
19:11
again it depends on a very
19:12
big difference of things and so you know
19:15
is there a fire suppression system is
19:17
there not
19:17
lots how new is it how big are the units
19:20
how much is the rent
19:21
the location crime score you know
19:24
i’m going to live there or not i know
19:26
he’s very you know fire prone so it’s
19:27
kind of
19:28
the thing no they and they take all that
19:29
consideration and then you know some of
19:31
the questions right folks that
19:32
that is being asked on this tool are
19:34
really what’s driving the cost right you
19:36
can kind of even see where
19:38
you know if you don’t if you answer one
19:39
question no versus yes there’s going to
19:41
be some fluctuation in the cost
19:42
right and it’s because each of these
19:44
things come with risk right that’s why
19:46
they
19:46
they call insurance or commercial
19:47
insurance risk management right they’re
19:49
trying to
19:50
the the insurance carrier is trying to
19:52
mitigate its risk
19:53
and it’s going to charge accordingly
19:55
right you know but yeah here in texas
19:57
350 might be on the low end at this
19:59
point right i’ve seen it probably as low
20:01
as
20:01
the lowest that’s what i meant like i
20:04
saw a 375 380 on one of the hills
20:07
yeah and once again it goes probably the
20:08
size of the unit too it depends a lot of
20:10
exactly it’s all
20:10
about yeah you know so you know check it
20:13
out this is it’s meant to be played with
20:15
right
20:15
you know and ultimately find out and ask
20:17
questions right
20:18
rock and dan are great guys and they
20:20
like to answer all this stuff yeah
20:21
another question is it safe
20:22
to say upon acquisition of an apartment
20:24
complex insurance will go up
20:25
no no it really depends on a lot of
20:28
things and i mean we’ve seen it go down
20:29
we’ve actually reduced our insurance
20:31
costs on property
20:32
so it could go either way it just
20:34
depends on your homework beforehand yeah
20:36
and i’m curious why you would ask that
20:37
right you know i mean i guess
20:38
more so it could go up because of the
20:41
thing that ferris brought up which is a
20:43
really really good point
20:44
right we have bought points come from me
20:46
ben thank you good patch on the back
20:48
there buddy
20:49
so one of the things that we’ve learned
20:51
the hard way is that
20:52
once again the people that you’re buying
20:54
the deal from might have a different
20:55
insurance policy
20:56
they might have 10 000 units and you
20:58
only have 1500
21:00
right so what do you think they’re going
21:01
to get better insurance than we are yeah
21:03
probably
21:04
so probably you know it’s it’s still the
21:06
same property
21:08
but it’s a totally different game when
21:09
it comes to the insurance carriers right
21:10
they’re going to give
21:11
this guy our gal because they have 10
21:13
000 units a lot better price than
21:14
they’re going to give us
21:15
right so you need to quote it out
21:17
accordingly each time don’t make
21:19
don’t make any assumptions right and i
21:20
think that that’s the other thing too
21:21
people make assumptions on taxes
21:23
they make assumptions on debt they make
21:25
assumptions on insurance
21:27
and all of these things you need to have
21:29
a good grasp on because if you don’t
21:31
and you underwrite a deal under those
21:33
assumptions and they’re wildly off
21:35
you could get into a into a deal and
21:37
you’re upside down
21:38
right you know and that that has
21:40
happened to people that we know
21:42
right where they’re just wildly off and
21:44
then they’re trying to make up for it
21:45
somewhere else and sometimes you can’t
21:46
you got to back out of the deal
21:48
so this is another reason why you got to
21:49
use the tool right and that’s another
21:50
reason why you need to talk to a
21:52
mortgage broker right
21:53
if you’re about to put in an loi on a 20
21:55
million deal why wouldn’t you want to
21:56
know what the debt is going to be
21:58
you know you need to understand this
21:59
stuff especially when you’re starting
22:01
off
22:01
right so any other questions yes so any
22:04
other comments questions let us know if
22:06
not
22:07
we will call it a rep what do when we
22:09
already talked about what we’re talking
22:10
about next week
22:12
10 minutes of multi-family investing you
22:15
need to pay attention man you need to
22:16
pay attention i’m just joking hey
22:18
i am paying attention all right i’m just
22:20
joking i’m only paying attention 3x more
22:22
than you instead of the typical 4x
22:24
so so we’re talking 10 minutes top
22:26
biggest miss
22:28
of multi-family real estate investing
22:30
once again we’ll be candid you know how
22:32
you know how we are folks right we’re
22:33
going to be pretty pretty transparent
22:34
about this stuff so
22:35
stay tuned for that next week we’re
22:36
excited about it check out the checklist
22:38
in the meantime and
22:39
we’ll see you guys next week

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