Interesting insights on potential worst-case scenarios for real estate investors. It's important to be aware of these risks and take steps to mitigate them.
As a contractor, we’ve had building management companies request the COi, but WCI was required only if more than person would be working on the property. Another provided a WCI waiver. Any thoughts on that?
Take it a step farther have them endorse you on the policy in case you need to make a claim against them for damages. If you have a falling out with the contractor they will be less likely to help with the claim process.
Loved every bit of this. Rarely does anyone get into this side that I love to learn about. So many podcasts are just about getting started but once you are in it, this is exactly what you need to learn.
We made an LLC for our own prop management and we even charge ourselves a management fee, every quarter we get a distribution and if there is profit this goes into a separate account for us to use if we want. The properties are in our personal names, so this will be the next step. We like taking rent using the business and managing it like a business.
Couch Carson, great content! Most people on RU-vid talk about how to start and how to adding more properties but you are the only one that talks about how to protect it once you acquired it. Thanks so much.
glad to hear that! More and more I've found the same thing. Buying a property is just the start! Now you have to figure out all the other details (so more content coming on THAT)
Should my primary residence be in an LLC? I didn't want my name in the searchable pubic record because my ex's enjoy sabotaging women's success. But now realizing if my residence is in the LLC, I could lose it if the company gets sued. How easy is to sell an LLC property or transfer them to my heirs? How do I prove to a realtor that I'm the owner of an LLC property?
It's a good question about residence in an LLC. I don't know. I've not seen anyone do it but doesn't mean you can't. More commonly I have seen people use a form of trust to hold title and keep privacy.. basically your trustee owns the property for you and that's kept private. You can talk to attorneys who specialize in trusts to give you better details.
I had a tenant caused fire (accident, left stove on) and their insurance paid for damage. No deductible for me or issues with my insurance not renewing after claims
The SC Landlord Tenant Act (and I imagine similar Acts enacted in other states) explicitly prohibits indemnification (or hold harmless) provisions in residential lease agreements. See S.C. Code 27-40-33(a)(3) ("(a) A rental agreement may not provide that the tenant: ... (3) agrees to the exculpation or limitation of any liability of the landlord arising under law or to indemnify the landlord for that liability or the costs connected therewith.). This does not apply to commercial leases, however. Indemnification provisions are extremely common in commercial leasing.
