How To Find The Right Painter!

A Real Estate Investor can quickly add value by painting the exterior of a distressed property. If you are like us, hate painting (long story), we hire someone.

While painting to add value to the distressed property, dealing with contractors are going to be one of your biggest headaches. Last year over 3,000 complaints and lawsuits were filed against painting companies in South Florida. Remember, you get what you pay for!

Below are questions you need to ask to protect yourself and guarantee the paint job is without unpleasant surprises!

Before - When we Bought It!

Here we go:

• INSURANCE
  • Do they have an insurance policy with an insurance company or are they "self-insured"?
    • Very few moving companies carry genuine insurance. All other painting companies are "self-insured" even though their advertisement might say that they are "insured for your protection".
    Almost There!
    • Estimate should include FREE full-coverage insurance - up to $10,000.
• BONDING
  • Are they bonded? If they are, it should be on their "Certificate of Insurance". Most companies are not bonded. Don't accept any excuses why they are not. You won't be protected.
• BUSINESS STANDING
  • Is the company a member of the Better Business Bureau?
  • If so, call and request a report of their standing.
  • Will they provided you with 3 current references upon request?
• PRICE
  • Ask for two comparison quotes.
    • Get one quote based on your entire job.
    • Get a second quote based on a calculated "real-time" hourly rate.
  • This way we are assured to always get the better price!
Finished - Yeah Baby!
• Do they subcontract their work or perform it themselves?
  • We hired a paint contractor and he subcontracted the job. Job was finished and we paid the contractor. Found out later the contractor never paid the subcontractor. Be careful because you may be liable to the subcontractor.
• Do they offer written guarantees of their work?
• What products do they use?
  • Type of paint and sheen, stains,...
  • Are they environmentally friendly?
  • Types of brushes and rollers.
• Are they specific by providing in writing the job specifics? Like:
  • About which surfaces you want to have painted (walls, trims, moldings, ceilings, etc.)
  • The paint colors and finishes you want used.
• Do they provide a written contract?
  • Review it carefully.
• Dis and re-connect of items as a result of painting?
• Provide references upon request?
  • At least three.

Painting can be a tedious task and as a homeowners and investors ourselves, we understand the concerns and worries that come with it.

Related Links, Blog Postings, Presentations or Articles:

• Good Social Media Site: About.me
• Real Estate Info Videos RSS feed playlist.
• Hash Tags: #realestateinvesting
• Profile + Tags: +realestatepaintingjobs
• Real Estate Investing Tip: Looking for an owner? Look up on the internet the property tax roll data for that asset. The address they have on file is where the tax bill is being sent.

Written by +Bob Burns.

####

Why so Serious? +Real Estate Investor about.me/RobertKBurns Tel: 305-586-5280 sec8@planocho.com

Follow US Baby!

Insurance for Real Estate Investors

Distressed Property Insurance

As our group started out as specialists in distressed properties, one of the problems we came across was insurance coverage for asset and worker protection. We thought if the Bank won't insure it, no one else will. But let’s look at it from the Lenders point of view.

Why would you Insure this Property?

Investors always preach, leverage someone else's money not yours. That's true but Lenders are taking a risk. What happens if an injury occurred on the property or the asset burns down? The Lender is either stuck with court costs, fines, hospital bills or his money is gone due to the lack of insurance. So FYI...Lenders are going to make you insure the property. We rather get our own policy than make forced payments to the Lender's insurance policy.

Depending on your exit strategy, you will eventually need some type of insurance.

Would You Insure This Property?

Below is an outline of some of the coverage’s we implemented while bringing properties back online:

Types of Insurance Coverage or Services

• Builders Risk Renovation Policy - Provides coverage that protects a person's or company's interest in materials, supplies and equipment used in the rehab or construction of an asset should these items become lost or damaged.
• Liability Insurance - It protects the property owner in the event he or she is sued for claims that come within property boundaries. The policy is designed to offer protection against third-party insurance claims, like contracted workers or tenants.
• Windstorm - Most policies issued today DO NOT cover damage from high winds. It is very difficult to get a windstorm rider due to the size of the deducible, ranges from 10K to 15K.
• Flood - Damaged caused by rising water. Broken pipe or hoses causes damage to interior of unit or building. Flooding caused by storm surge.
• Fire, Theft and Vandalism - During rehab you can expect one of these three items to occur. Are you protected from these likely events?
• Insurance Loss Consultants - Provides Claims Representation to Policyholders. If you experience an event that financial hardship will occur, the insurance company is going to use every resource available to limit the payout amount and the policyholder is expecting the repairs to be done with no out-of-pocket expense, including the deductible. Insurance Loss Consultants make sure that the investor receives the largest benefit to which they are entitled under the insurance policy.
• 4 Point Inspection is required if an investment property that your company or contractor is restoring is older than 30 years or being refinanced. Insurance companies will want to check the following four systems before issuing a Homeowners policy:
  • Roof
  • HVAC - Heat, Ventilation and Air Conditioning
  • Electrical
  • Plumbing
• Our Contacts - These are companies that specialize in issuing policies that are going to protect you against the hazards of being a real estate investor.
  • NCF Insurance Associates
    Contact: Fernanda Jorquera
    Telephone #: (305) 446-5474 x 108
  • Miaminspect Inc. Four Point Inspection Approximate Cost: $75.00
    Contact Lazaro at (305) 842-1080.
  • John Galt Insurance
    Telephone 888-686-GALT(4258)
    Ask for Investors Sales Dept.
    E-mail us at: Investors@john-galt.com
  • Strategic Adjustment Services, Inc.
    Bill Coffman
    Telephone (786) 999-6565
    E-mail us at: bill@sasclaim.com

In the beginning of the rehab depending on your exit strategy, insurance might not be needed but you will eventually. Remember, any property has value even if you can't see it. Are you prepared to lose that value if you don't insure it?

Related Links, Blog Postings, Presentations or Articles:

• Acciones de Valores America Latina
• Hash Tags: #insurance #LAFM
• Real Estate Investing Tip: Make sure during a title search that your title company checks for Open Permits. More than once this has hampered a pending sale.

Written by Bob Burns.

####

So Raise Your Glass! +Real Estate Investor about.me/RobertKBurns Telephone #: 305-586-5280 sec8@planocho.com

Follow US Baby!