Commercial General Liability and other comments

General Real Estate Investing
1

In “general” - what will general liability cost you for say a 1M dollar policy? I know underwriters and insurance comp’s won’t quote you a price until you have a property or some info on overall strategy, but I just want an overall picture.

So for instance, what do you pay for yours?

Secondly, what do you pay for Fire and Casaulty Insurance on a building/home?

Now onto other things: Lease/Options - what do you think of Lease Op’s to purchase Out of Town real estate? - Another words - use the L/O (when there is no seller bank mortgage and DOSC to deal with) to take possession of property - if things go well…ie. property management works well, rents are collected, problems are attended to accordingly and overall operations improve or are seemingly steady - then exercise the purchase option at the predetermined time. If not, walk away.

The seller gets me to see to the property thus alleviating him/her from burden of having to manage it and I get the opportunity to purchase some RE.

As you can see, I am NOT giving up on the idea of investing out of town.

2

personal liability insurance can usualy be obtained for $300-600/yr at $1M and cover up to 3 or 4 properties (usually a small fee as you add properties). Above 6 properties I have not found a company that will write policies

as for fire insurance, rate vary, but probably between $400-$1200 in typical for a 1-4 unit building.

in the scenario you describe, why not purchase it outright and get the Seller to carry back the entire mortgage. That way he get a check every month with no hassles and you get the property that you can build your business upon. Many older landlords are willing to go this route to have steady income and free themselves up for other things do beside dealing with grind of managing real estate.