Should I get insurance on my wholetail property real estate investing

Should I get insurance on my wholetail property real estate investing

Real Estate Investing Wholetailing refers to an investing avenue that is a hybrid between traditional wholesaling and retailing.

Wholetail real estate investing is a combination of wholesaling and a full fix & flip rehab. You buy a property at a discount as if you were wholesaling, but then you put the property under contract and fix it up just until it’s good enough to be sold on the Real Estate Market. Wholetailing involves you still buying at a deep discount but instead of selling to another investor, you rehab the property “just enough” so that it can be sold on the Market for retail profits. Essentially, it’s a mix between a wholesale deal and rehab deal.

When wholesaling real estate typically the investor ties up a house under contract after finding a great deal and then searches trying to sell his option rights or contract to another party who actually has the funds to close the deal. Many wholesalers don’t actually have funds to buy properties but simply act as bird dogs searching out the best deals. Wholesaling real estate is also referred to as flipping contracts because you rarely ever take physical possession of the property. It is challenging because since you don’t actually own the property you have a short window of time to line up a buyer.

What Does Landlord Insurance Cover?

Wholetailing Real Estate refers to the practice of finding the investment property and closing on the property instead of selling your contract rights to another investor. When Wholetailing a real estate investor would like to close on the house as quickly as possible. You must actually have the funds to purchase the home in this case. A wholetail house would be something clean enough to live in but priced below the comps and maybe needs a little TLC. We would recommend conducting a Louisville real estate market analysis  and determining the Louisville real estate absorption rate before purchasing the investment property.If you are looking for investment property in Louisville Ky you may want to start searching for foreclosures.

Wholetailing is a new way to make money investing in real estate. Like wholesaling but with a new twist and can make you lots of money. But what is wholetailing and why is it different than wholesaling?

Landlord Insurance 

What is Wholetailing?

Wholetailing is a combination of two different real estate investing strategies: Wholesaling and Flipping but without all the hassle and large expense of a full-blown flip. Instead of a full remodel, wholetailing would be cosmetic updates to the property, like painting the interior and updating the flooring.

Other great ways to increase the appeal of the home, and make you more money would be:

1. Paint the exterior
2. Spruce and clean up the front yard
3. Update the hardware
4. Replace the fixtures and lighting
5. Even update the appliances

This will cost a fraction of what a traditional flip will cost and make you a lot more money.

How to Save Money on Landlord Insurance and Specialty Dwelling Insurance

Real Estate Investor and Business Insurance for your investment property.

The best way to save money on landlord insurance is to follow these simple steps:

1. Increase your deductible on the investment property. A higher deducible results in a lower annual insurance premium
2. Pay your insurance premium annually to obtain a paid in full discount with the insurance company.
3. Make sure your rental property is well maintained and the electric, heating, and plumbing have all been updated.
4. Only file an insurance claim for major items.

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Should I get insurance on my wholetail property ?

Even if you are only going to own the investment property  for a short period of time it is good idea to get insurance to protect your investment.  A basic fire dwelling insurance policy will offer coverage for Fire, Windstorm, or Hail Damage.  In addition once you are the owner of the property you have a Liability exposure. If any third parties are injured on the property they may file suit for bodily injury. It is shocking how many RE investors are skipping a critically important part of the process for their wholetail deals. Failing to insure your property could be disastrous.  For more information about Specialty Dwelling Insurance

 

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