Is there such thing like 'Investment Insurance'

To insure the money you invest .
In Buying Property - Asked by AJL P. - Jun 13, 2012
Report Abuse
Answer this Question

Answer(s)

Julio G.
Broker/Agent
Tampa, FL

I have not heard of it; but that is not to say it isn't possible. Case in point, there are insurance companies that underwrite expiditions, business ventures so I am sure you may find a one to write you a policy; however the premium would be high, just as a high risk life insurance policy is. Otherwise, before investing do the research and then do the math; if your bottom line is a positive cash flow and the numbers show a likelyhood of continuing; then it can be safely projected to be a sound investment. Take care to ensure that you have it properly managed, a good investment can be lost with poor management, regardless of numbers projected. Food for thought. If you have particular interests in Tangible asset investments in real estate in Florida call me.

Jun 15, 2012
Report Abuse
Dawn S.
Broker/Agent
Spring, TX

http://money.msn.com/stock-broker-guided/4-ways-to-protect-your-portfolio-smartmoney.aspx
The above references Stock insurance.
The best investment for Real- Estate insurance Is yourself. Look at what you are buying, qualify its assets, and look at the actual RoI. Then, determine the long term risk. Carry property insurance. Get a property manager. Make sure your property manager is a small to mid-size property management company, this will keep your cost down over what the larger companies charge. Be sure to look into the fees that are being charge.
Here are some Simple tips to investing.
1.Get Connected – Every investor can do better by bouncing ideas off of other investors and the best way to find other investors is to join an investment group. Not only can you run your investment ideas by other people, but it also gives you a connection to other investors if you decide to sell your properties some day.
2.Budgeting - Setting this up before you buy a property is key. It stops you from over spending and ruining any chance you have of making a profit on a property you buy. If you aren’t sure about budgeting and want some help then look for local investment property specialists to help you.
3.Fast or Slow – Slow and steady wins the race. I’m sure you’ve heard that before and with real estate investing it couldn’t be more true. Getting sucked into buying to many properties to fast, whether it’s to rent or flip can get you into trouble. I’ll let you in on a little secret…there is always another deal coming. You’re never going to miss the “last good deal”. Statistically there will always be another one and you have to remember that.Determine Your Commercial Real Estate Goals
Buying commercial real estate can be a good way to invest your money. Most people start buying commercial real estate for one of the following reasons: a specific business use, extra rental income, or to build equity.
Run a business with commercial real estate
Some people buy commercial real estate with a specific use in mind. They want to open a store, restaurant, or bar and need a place to put it. Buying the property can provide definite benefits over renting, including building equity (see below) and the ability to manage your commercial real estate space without restrictions from a property owner.
Earn extra rental income with commercial property
People who buy commercial property are also often looking for some extra income. Whether you’re interested in buying a duplex, an apartment complex, or a mini-mall, renting out your commercial real estate space can be a great way to earn some extra money. In a growing market, where real estate prices are rising, someone else is helping you build equity. If you rent out half of your duplex, your renters are helping you pay your mortgage and build equity (see below). Be sure you understand all of the economics.
Build equity with commercial real estate
Equity is the value of the owner’s share in a property. When you finance a large sale commercial real estate purchase, you’re borrowing the money from the bank and slowly paying the bank back. With each dollar you pay back, that much of your equity is growing. Think of it as the ultimate piggy bank, where every dollar you put in gives you a little more of the property. And if your commercial real estate property appreciates, that single dollar can end up being worth more than a dollar. As the value of your commercial real estate property increases over time, so does your equity.

Plan Commercial Real Estate Investments
No matter what kind of commercial real estate property you buy, real estate appreciation is usually a slow process. You’ll need to make a solid plan and account for potential problems.
Finance commercial real estate
Before you secure financing, it’s important to know exactly what you can afford and how much risk you’re willing to accept. Determine whether the rental rates can support the expenses of the property, including but not limited to the loan payments, taxes, insurance premiums, and repair and maintenance.
Pick the right commercial property
Before you can decide what kind of commercial real estate property you want to buy, it’s important to take into account your skills, ability, and the amount of time you want to put into it. If you can afford a 10-unit apartment complex but don’t have the time (or the stomach) to deal with 10 different tenants, then maybe a duplex is more your speed. If you’re a do-it-yourselfer, then maybe you can buy a fixer-upper and make more money by doing the work yourself.
While the value of commercial real estate property can be averaged over a large area, each market is unique. Spend some time walking around the neighborhood. What is the rent of other similar commercial real estate properties in the area?
Tax and investment goals

Jun 18, 2012
Report Abuse
Josh C.
Broker/Agent
Presque Isle, ME

The short answer is no.
The slightly longer answer is that even if you could find someone who was willing to write you a policy on a particular investment, the premiums on that policy would be so expensive that it wouldn't be of any benefit to you.

Jun 18, 2012
Report Abuse
Paul E. W.
Broker/Agent
Livingston, NJ

Dear Aron - If you're referring to risk management coverage for distressed/vacant/non-performing properties, then yes such coverage does exist. Policies may be purchased short-term to protect the premises during rehab until the property is stabilized. For further information visit the Zurich North America site @ www.zurichna.com

Jun 25, 2012
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question