LLC, Insurance Question
Hey all,
I've formed a LLC with two other partners. We have bought a single family home that we will all be occupying. The property will be in the name of the LLC. We will be able to rent a couple of the rooms, and plan in a couple of years to move out and rent it out.
What type of insurance do we need? Is it considered commercial insurance?
Technically, you need "homeowners" insurance. Unfortunately, most Agents and/or companies will probably get a big case of the "Icantdothis"... That is, insure a home, owner-occupied, owned by an LLC.[ Edited by norrist on Date 08/31/2004 ]
Yep, already running into that... he's saying I'll probably need to get a commercial policy, which is going to be way more.
Others here must have gone through this with all the talk about LLC's on this site... any other's experience would be greatly appreicated!
You may want to talk to an Attorney versed in REI and determine if there is a way to "name" a person/persons as the 1st named insured, and the LLC as Additional/loss payee. If the property were not owner-occupied, the commercial policy is the only way to go.
Have you looked into the charlotte N.C. market?
(Moderater THIS IS ONLY A QUESTION.)
are the north Carolina laws more favorable towards the owner than here in ca.
In re NC, have you read the posts here about the hassle the NC AG is giving "sub-to" REIs?
Not to say NC isn't a fine place to do business, but anybody buying there needs to be aware of what's going on, and be girded to defend anything he/she might do in acquiring RE in NC.
One thing I notice the property tax in TX is high. In Travis county > 2%. But there is no income tax.
Have noticed I am only getting response from other states (not Texas) Maybe the texans don't know if the laws are in their favor or the tenent. I had heard that if a tenent doesn't rent, the law will come help you throw them out within a reasonable time, like a month. Maybe no one in texas has that problem.
Thanks for all the other input. I would like to start investing in some other state by the first of the year or sooner. Just don't know the best place to start.
Thanks
I have not been through the process yet (I'm new to REI) but have heard that it is about a 10 day process from the time you file for eviction to the time the sheriff will remove them from the property.
Property taxes are high in TX. I pay just less then 3% and they fight to keep appraisals high. It is not uncommen for property to sell for less then the Tax apprasal around my parts
I bought a book this weekend and am in the process of reading it that may interst you. The Landlords Legal Guide in Tx, ISBN # 1572483555 The book has a chapter on Eviction, but I have not read it yet. I'm at work right now, and the book is at home. I'll let you know more if you want after I have finished reading.
I am new to the rental market, but will tell you what I know. I went to a seminar before I started renting put on by the local housing authority. Several people spoke including a judge. He emphasized you must have a lease. You can have almost any terms etc in that lease as long as its legal. Then yes, it is very straight forward to getting them out. Hope this helps. Lisa T
Any prospective LL, including those in TX, needs to read & get familiar with his own state law...under heading of Landlord & Tenant in VATCS (Vernon's TX Annotated Statutes).
Every courthouse in TX has this set of state statutes available to public.
The resident law librarian can show you where to find the VATCS, then you can sit & learn in peace.
By the way, re residential leases...lots of rental experts opine that long term leases really are more beneficial to the T than to the LL, so they don't use them...and just rent their units on month to month basis.
A huge advantage of the m-t-m arrangement is the LL can move the T out on very short notice...probably 30 days anywhere in USA if all the T is renting is just a home (not in MHP where the T has his own house there on the LL's property)
[addsig]