|
|
|
Wake Up And Smell The Smoke
aturday morning I woke up upset. It was clear, I had to get
alone. Slowly before up.
opening my eyes I began to
stretch. Taking inventory as I Finally 12:15 and Brenda arrived.
moved one limb at a time, yes, I kissed her, told her I loved
all the usual aches and pains her, and said I'm hungry. The cat
were still there. I don't know demanded to know how dare she
whether I felt or heard it, but leave before his breakfast, and
there was a major thump on the he's hungry, despite his half
bed signaling the arrival of the full bowl. She said lets go yard
very large cat, that I share saleing and I'll buy you lunch. I
living quarters and a wife with. was happy, and with a few strokes
My inventory had reached my right to his soft under belly the cat
hand, it was working and I could was placated.
control it. I slowly reached for
my glasses. Forcing my eyes open, Three disappointing yard sales
I see a very agitated cat pacing and one garage sale later, none
back and forth like an expectant had really wanted to sell the
father. yard, we reached Burger King.
Hunger satisfied, we decided to
Cat is shouting at me, I respond drop in on our friend Jim Dixon.
"what" the cat rushes to my head. I write about Jim in my book he's
Now standing four inches from my the maintenance man for one of my
face he explains loudly in no real estate investment students.
uncertain terms that Brenda, our Leaving Burger King we had to
wife, is missing and his bowl is wait for a speeding fire engine
empty! I remember now, Brenda going our way. Finding two yard
left an hour earlier, she'd be sales on our way to Jim's and
back about noon. I tried to still no yard for sale, we heard
explain, but cat got even more more sirens. Leaving the second
sale we spotted thick black interest. But, are you covered
smoke, in Jim's direction. Jim for your liability and your
lives in one of three houses one equity?
of our investor owns at that
location and that's where the A few things home owners and
smoke is! No more distractions, investors need to know about
we went straight to Jim's. insurance:
Happily for Jim and our investor
the fire was a block away. 1. You must have it! Insurance
protects your liability, your
Real estate Gurus, myself lender, and your equity.
included, tend to write about the
sexy parts of real estate 2. You must have an insurable
investing. Good Gurus do teach interest, if you don't really own
the mundane but even we emphasize the property you don't have any
the exciting subjects. Smelling protection for your (potential)
that smoke had me thinking about equity. If you control a
insurance! Most of us rarely property, by a lease option,
think about Insurance, but we option, or sales agreement, you
should! may have liabilities regarding
the property but you don't have
Here in Las Vegas most homes have insurable equity.
doubled in value in the last
three years, yet very few home 3. You must be "named" on the
owners and investors have insurance policy, if your name is
increased their insurance not on the policy, you're not
coverage. It's likely that your insured!
mortgage lender is covered by
your insurance, they are very 4. Don't depend on inflation
careful to protect their protection! If your insurance
company uses a inflation factor protects you and may not cover
as opposed to a current appraisal the seller for monies you still
you're probably way under owe him.
insured.
2. Vacant houses are an
5. Your lender is only concerned attractive nuance they draw
that you have coverage sufficient vandals, squatters, drugies, and
to pay off their loan. young lovers, like bugs to a
light.
6. Your real estate agent, your
guru, your escrow agent, your 3. It's insane to have people
attorney, and not even your working, for you, in an uninsured
insurance agent are responsible property. Your cheap help may get
for you having sufficient extremely expensive if they hurt
insurance! themselves.
7. You've worked too hard 4. It's hard to insure a vacant
creating equity to lose it property because the insurance
through the careless acts of a companies know the risk. If the
tenet. Saturday's fire was caused insurance companies think there
by an octogenarian on oxygen who is a big risk, how can you afford
had to have a cigarette before to be unprotected?
getting out of bed.`
Flood insurance is not part of
Notes to investors flipping your hazard insurance! Lenders
houses: will require flood insurance if
you're in the hundred year flood
1. You are liable even if you plain. Many of the recent floods
haven't taken or recorded title. were on land never included in
The seller's insurance never any previous flood plan. Water
runs down hill, so unless you if you're at a high risk it's
live on top of a mountain, you costly but cheap. If you're in a
maybe flooded someday. Flood low risk area it's inexpensive.
insurance is a federal government
program, so your insurance agent So check your insurance before
is not going to be reminding you, you wake up and smell the smoke.
you need it. Flood insurance is
priced based on the risk factor,
About the Author:
William J Archambault, Jr has been in lending and real estate since 1969. A mortgage broker in Las Vegas, NV He writes about up to the minute real estate, tempered with the wisdom of our grandfathers. He is the author of "One House At A Time / Finding And Buying Single Family Rentals" available at http://www.reii.org e-mail: author@reii.org
Source: www.isnare.com
|
|
