Risk/Reward

“Everyone wants to go to heaven, no one wants to die!”

Investors always seek new ways to improve their yield on investment and capitalize on new opportunities.  What I have found after owning and brokering apartment buildings and working with hundreds of multifamily investors from TICs to Single Owner Entities is that the “Rewards” of real estate investing such as cash flow, depreciation, appreciation, equity building etc is highly publicized in thousands of books, tapes, seminars etc.  I call this the “sizzle”.   BUT the “steak” is in property and risk management.  Deal junkies love the thrill of the kill from deal to deal.  The world undoubtedly needs these folks however no matter how good of deal they get, without good management, their efforts are all for nothing.

When hurricane Katrina hammered New Orleans in 2005, an interesting thing happened in Houston, TX.  Many commercial property owners whose assets were South of I-10 saw their insurance premiums increase sharply (200%-600%).   Then when Ike hit Houston in 2008, many commercial property owners struggled with their insurance companies to receive settlements.  It was not unusual for a year or more to pass before owners received their insurance proceeds.

So in response to so many clients who were getting the run around from their insurance companies post-Ike I got licensed as a Texas Public Insurance Adjuster specializing in multifamily insurance claims and launched Insurance Claim Recovery Support LLC.  The insurance settlement process can be complex and the tactics employed by many (not all) insurance companies are designed to short change and wear out policy owners.  In most cases, lightly documented claims are settled far less than you may rightfully entitled to.  Every commercial insurance policy requires YOU, the investor to present your claim.  If something happens to one of your assets, the insurance company sends their adjusters who work for them, not you.

If you would like a free broker opinion of value of your multifamily investment or insurance policy review and receive an opinion if you are over/under insured, just send me an email at scott@theinvestoragent.com