- Joined
- Nov 11, 2012
- Messages
- 71
If you have been to an ACRE, you will have heard about the sophisticated investment binder. It is basically a compilation of all your financial data- your NOA's, T2's, spreadsheets, lists of properties and so on. I recently updated my binder, and at the stage I am at after all the tax returns, it was a two month process, and about a 200 page binder.
What I became very aware of in the process is all my updated expenses: taxes, insurance, utilities, and so on. When I started 'looking behind the curtain' as we have been so often told, I realized that on a group of about 14 homes, I was paying excessive insurance. It was eating up huge amounts of cash flow and I had not been fully aware of the extent of it. The problem that existed is that modular homes were being assessed very high insurance because they were being treated like the old 1970's mobile homes. Today, however, modular homes are much the same construction as a typical stick built bungalow as they all need to meet the current building codes. They just happen to be moveable as they sit on steel beams.
I decided to shop my insurance on this grouping of homes. On an example home, I cut the insurance premium by half for a better policy. I will end up saving over $10,000/ year on my policy.
Keeping up with your investor binder is critical, and this win has taught me that even though you think you can't change your costs, it doesn't hurt to check with another insurer.
Thanks REIN for teaching the power of the sophisticated investment binder to me.
What I became very aware of in the process is all my updated expenses: taxes, insurance, utilities, and so on. When I started 'looking behind the curtain' as we have been so often told, I realized that on a group of about 14 homes, I was paying excessive insurance. It was eating up huge amounts of cash flow and I had not been fully aware of the extent of it. The problem that existed is that modular homes were being assessed very high insurance because they were being treated like the old 1970's mobile homes. Today, however, modular homes are much the same construction as a typical stick built bungalow as they all need to meet the current building codes. They just happen to be moveable as they sit on steel beams.
I decided to shop my insurance on this grouping of homes. On an example home, I cut the insurance premium by half for a better policy. I will end up saving over $10,000/ year on my policy.
Keeping up with your investor binder is critical, and this win has taught me that even though you think you can't change your costs, it doesn't hurt to check with another insurer.
Thanks REIN for teaching the power of the sophisticated investment binder to me.