Rental Property Insurance Pitfalls with Attorney Galen Hair

 

Rental Property Insurance Pitfalls with Attorney Galen Hair

 

Guest (Attorney Galen Hair): New Orleans Attorney Galen Hair is an expert in avoiding rental property insurance pitfalls.  At any given time Galen and his team are involved in helping several hundred people obtain full payment from insurance companies for catastrophic loss.

 

Big Idea: Rental property insurance policies are designed NOT to pay out.  Galen Hair & I discuss the process for purchasing a property insurance policy.  I personally own dozens of properties and have flipped well over 1,000, and I’ve NEVER bought insurance with the level of due diligence coached by Galen.  You may not have the insurance protection you believe you bought….

 

 

    

 

Dan Breslin: Today we are joined by New Orleans Attorney Galen Hair who is an expert in avoiding rental property insurance pitfalls. At any given time, Galen and his team are involved in helping several 100 people obtain full payment from insurance companies for catastrophic losses. A catastrophic loss would be considered a very large claim usually a fire in the context of us real estate investors. The thing is, many rental property insurance policies are actually designed not to pay out completely in those catastrophic events.

During this episode, Galen and I discussed the right process for purchasing a property insurance policy. I personally own dozens of properties and have flipped well over 1000 and I have never bought insurance with the level of due diligence coached by Galen on today’s episode, you may not have the insurance protection that you believe you bought. Let’s begin.

Alright, welcome to the REI diamond show. Galen, how are you doing?

Galen Hair: I’m great. How are you doing?

Dan: Nice. I am also great. We had like 60-degree weather here. It’s December in Chicago, which is unique for us this time of year. So no one’s complaining about the weather right now. Whereabouts are you recording in from and live and invest in that kind of thing?

Galen: Yeah, so our office is based in New Orleans. Essentially, that’s where I live. Spend most of my time here. Unfortunately though, given my line of work, I kind of have to follow disasters where they are. So I will move around, probably head to the Midwest next week because of some tornadoes that just kind of blew through everything during hurricane season, I kind of moved from Hurricane to hurricane but most of my life and work are in New Orleans. And the weather is crazy in New Orleans if anyone follows that. So I think today, it’s pretty good. It’s like 65. But a couple of days ago we were in like the 30s. So it’s just all over the place.

Dan: So just to kind of give people a little bit of background, if you would touch on maybe some of your real estate experience, and then kind of encapsulate what it is that you do in your business model now and how that fits in for real estate investors listening.

Galen: Yeah, so real estate-wise, I’m definitely an amateur. I do identify properties that make sense for us to pick up kind of in and around the New Orleans area. And what I’ll do is buy those, fix them up and actively rent them out. I find that that’s an easier model for me than flipping, although the markets are pretty good here. It produces revenue. So for me, as long as it’s cash positive, it’s an investment that I’m kind of interested in. But I don’t do more than maybe two a year.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 6.99%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

www.InsuranceClaimHQ.com

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessRealEstateDeals.com/

 

Galen Hair & I Discuss Rental Property Insurance:

  • Rental Property Insurance Policy Pitfalls-written to avoid paying claims

  • How to Make a Claim in the Event of Catastrophic loss

  • Choosing Enough Coverage When Buying a Policy

  • The Sneaky Practice of “Co-Insurance”

    

Relevant Episodes: (There are 205 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Jacksonville Florida Turn Key Rental Properties with Gregg Cohen

Investing in Jacksonville, Florida Turn Key Rental Properties-Podcast Episode Highlights

Gregg Cohen, founder of JWB Real Estate, joins us on the show today to discuss Jacksonville Florida turn key rental properties. Real Estate investors in the olden days were limited to investing in their local market-where they could physically manage the tenants, repairs, and any other issues that arise from owning property long term.

In today’s world, with the internet and property managers like JWB who offer fully renovated houses with tenants in place, out of state, or even out of the country owners can enjoy cash flow in any real estate market. With so many markets available, let’s talk about why I like Jacksonville, Florida, and the reason I sought to invite Gregg onto the show.

 

How to Scale a Real Estate Investment Portfolio Using Turn Key Rental Properties:

My main business is buying & selling houses as quickly as I can. Sometimes completing renovations, sometimes selling nearly as-is, with only minor cosmetics done after we buy the property. Even though I close close to 300 deals per year, when it comes to passive income, I prefer buying turnkey investment properties. I also have no issue with long distance ownership.

The bottom line is that I can scale quickly when turnkey companies are placing tenants and managing the details for me. The extent of my involvement is the heavy lifting on the front end to actually close the purchase: the loan application, signing documents, and providing the 20% down payment.

 

Why Invest in the Jacksonville, Florida Real Estate Market?

The Jacksonville, Florida real estate market is attractive to me first for location.  First, there are jobs and population from all over the U.S. migrating to Florida.  Second, the home prices in Jacksonville haven’t detached from wages.  Normally I prefer buying turn key rental houses in markets with 5 Million people.   Jacksonville has about 1.5 million, which is smaller than I’d like, but large enough to catch my attention. Even though it’s smaller than I’d normally prefer, Jacksonville is among the fastest growing large cities in the US.

 

Why Does the Age of a Home Impacts the Value and Maintenance Cost?

Gregg’s latest innovation is build to rent single family homes. Turn key rental property investing normally focuses on existing houses.  First, the company buys a house, second, they renovate a house, third, they rent to a tenant, and finally, they sell the house with tenant to an investor like me.  JWB actually began buying lots and building brand new homes for the same purpose: to provide investors with a brand new turnkey rental investment. I have since attempted buying the brand new offering only to find out that they are in very short supply.   Somewhat disappointed…

Anytime I consider buying a turnkey rental property, the biggest variable, after location, which affects price is the current condition. I love the idea of a new home-since the entire house is new. That’s not usually an option, so I evaluate the home based on it’s current condition. I prefer buying renovated turn key real estate investments from the property management company who also does the renovation. You still need to to due diligence on the company, the house, & the market before you close the deal.

Many of the houses I’ve bought “turn key” were simply occupied rentals bought from mom & pop landlords. In these instances, I expect a risky tenant, many repair issues, and a significantly below market price to account for the risk.  Long term maintenance costs are higher on those deals.   On the other hand, a fully renovated turn key rental property purchased through a full service provider, such as JWB real estate, will cost less in the long run. Please check out the full episode & come up with your own conclusions.

 

Interested in Buying Off Market Real Estate Deals?  You Need the Deal Machine!

This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals.  For a Limited Time, You Get Free Access at http://REIDealMachine.com/

Greg & I Discuss:

  • Why Invest in Jacksonville, Florida Real Estate

  • Turn Key Rental Properties Offer Easy Scale

  • Build to Rent-Brand New Assets

  • Why a “Focused Approach” Beats a “New Markets Approach”

 

Relevant Episodes: (174 Content Packed Interviews in Total)

 

Resources Mentioned in this Episode:

www.JWBRealEstateCapital.com

 

 

The transcript of this episode can be found here.

Transcripts of all episodes can be found here.

Avail the Free Property Management Platform with Laurence Jankelow

Laurence & I Discuss:

  • Cycle of a Landlord-Move in to Move Out

  • Automate every step of the process

  • Auto-pay tenants ACH

  • Credit Report, Background, & Lease Signing Online

Listen Now:

Google Play

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Relevant Episodes: (There are 161 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.Avail.co

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

 

Scaling Your Business through A Players with Mike Matalone

Mike & I Discuss:

  • Definition of an “A” Player

  • System for Attracting & Onboarding Talent to Stay

  • How to Make Better Hires

  • Training for the job hired is a Mistake…

Listen Now:

Google Play

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Relevant Episodes: (There are 160 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.XP3Talent.com

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Owning & Operating 4,500 Apartment Units with Mark Kenney

Mark & I Discuss:

  • Cost Segregation for Huge Write Offs

  • Partnering for Bigger Deals than You Can Afford

  • Favorite U.S. Markets

  • The Best Deals are NOT Always the Cheapest

Listen Now:

Google Play

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Relevant Episodes: (There are 145 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.ThinkMultiFamily.com

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Why Single Family is Better than Multi-Family for Building Wealth with Greg Rand

Greg & I Discuss:

  • Reasons Why Single Family is Better than Multi Family

  • Considering Liquidity when Investing in Real Estate

  • Data Points for Selecting a Market

  • Greg’s Favorite Single Family Real Estate Markets

Listen Now:

Google Play

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Relevant Episodes: (There are 144 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.RentersWarehouse.com

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Litigation Finance-How to Fund a Million Dollar Lawsuit with Roni Elias

Roni & I Discuss:

  • Roni’s Experience in $9 Billion of Litigation

  • Risk of Insurance Company Payout for RE Investors

  • Financing a Lawsuit with Zero Cash out of Pocket

  • Background in Building $500 Million Comm. RE Portfolio

Listen Now:

Google Play

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Relevant Episodes: (There are 143 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.YourTCP.com

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Get FREE ACH Payment Processing on Rentals with Eachan Fletcher

Eachan & I Discuss:

  • How to Get FREE ACH Payment Processing for Your Rentals

  • Rental Insurance-Get Paid During Evictions

  • Push Button Maintenance Processing

  • Guaranteed “On Time” Payments

Listen Now:

Google Play

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Relevant Episodes: (There are 142 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.NestEgg.com

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Noel Christopher on Capitalizing on the Consolidation Underway in Property Management

Noel & I Discuss

  • Benefits of a Company with 22,000 Units Under Management

  • Best U.S. Markets to Invest (if your market is overpriced)

  • Selecting the Next Market Outside of Your Own State

Listen Now:

Google Play

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From Closing Thousands of Deals to Managing More than 20,000

Noel started out in real estate in the Chicago market, closing several thousand deals between 2010-2015.  He has since changed his focus to Residential Property management for the smaller investor.   Due to a lack of quality national property management companies, Noel, of Renters Warehouse, has been focusing on acquiring new property management companies and building strategic partnerships.

Relevant Episodes: (There are 109 Content Packed Interviews in Total)

Resources Mentioned in the Episode:

www.RentersWarehouse.com

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.