When looking at property to invest in, there are so many numbers and factors to consider and insurance is often left to the final stages of due diligence. While this is common practice, it’s not in the investor’s best interests for several reasons. Not only could unforeseen expenses crop up when it’s too late to back out of the deal, but it’s likely you could be over or underpaying for insurance if you leave it till further along.
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This is why our guest today, J Darrin Gross, advises getting insurance related information early on. As a commercial real estate insurance broker, Darrin knows his stuff. In this episode, Darrin talks about why it’s important to have a trustworthy insurance broker long before a deal is done. By having someone like this on your team, you could easily run properties by them before making any commitments. This way, you don’t waste energy making offers on properties that would never be insured. We also learn more about finding the right insurance broker and some questions to ask to make sure they are knowledgeable. Insurance is not the most thrilling part of real estate investing, but it is without question one of the most important aspects. It can either save or cost you a great deal of money. Darrin’s insights are tremendously helpful and ones we could all learn from. Tune in today!
Key Points From This Episode:
- Darrin’s background, how he got started in real estate investing and his insurance specialty.
- Find out when the ideal time to contact an insurance broker about a property would be.
- When buying a property, get the seller’s experience of it, so ask for a loss history.
- Why it is so important to establish a relationship with an insurance broker early on.
- How insurance companies do their due diligence to ensure that a property is not a liability.
- As the buyer, find recent information on the roof, electric, heating, and plumbing systems.
- How a non-smoking policy and renter’s insurance requirement can help with investor insurance.
- Some questions to ask when choosing a new insurance broker.
- Find out which factors influence the ability to negotiate the initial insurance quote.
- Darrin’s downturn preparation and the biggest contributor to his success.
[bctt tweet=”The more experience you have and the more relationships you have and the more you have to insure, that’s going to be more of your leverage. — @CREProNetwork” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About J Darrin Gross
Darrin is an insurance broker based in Portland, Oregon. Since 1990 he has worked with real estate investors to protect their portfolio from ruin. Since 1997, he has invested in real estate; flipped single-family, single-family & small multifamily properties in Oregon and Florida. He is the host of the Commercial Real Estate Pro Network Podcast, providing weekly interviews with investors & professionals regarding asset & risk management.
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