Thursday, November 9, 2017

Overcoming Hurdles with New Rentals

I am working towards closing 5 new doors at the beginning of December. So far, transaction isn’t going very smoothly.

On financing side, our application is being reviewed by the lender. It’s been several weeks since we applied and the process is going very slowly. I worry that we will run out of time. My back up plan is private money. This option will consume most of the cash flow and is not ideal. But even with private money the opportunity is still worth going for.

Today I learned from my insurance adviser that we will have to look at sub standard market insurance providers. Standard market insurance companies don’t want to take on the properties since the properties don’t meet their “best in class” underwriting guidelines. This is expected. There are a couple of things that need to be fixed per inspection. The plan is to obtain a short term insurance policy with a sub market vendor, make improvements upon closing to bring the properties to “best in class” level, and switch to a primary insurance provider. 

Keeping fingers crossed. I am grateful for all the help from our mortgage and insurance advisers. 
New Income Propery