In real estate, speed is everything. It’s no film franchise with souped-up cars, street races, and wild stunts, but there has to be swift action in order to get what you want. Finding the right deal takes time, and there’s a lot of paperwork that goes into closing, reaching the finish line and, more importantly, closing quickly. So, what’s insurance got to do with it?
A good insurance broker should be there to help you every step of the way as you’re working through new acquisitions. The last call you want to receive is from your lender letting you know the closing is tomorrow and they still don’t have your insurance requirements. That’d be like Vin Diesel ready to race his muscle car without checking the brakes first. Scary, right? Imagine your insurance broker is the mechanic. This is where he or she comes and takes action to make sure you’re fully equipped before closing.
A good broker can help walk you through what’s needed for an acquisition before even making a bid on the property. Depending on the asset type, location, and size, they should be able to help estimate the insurance costs so you have an educated expectation. This allows you to bid on a building and more accurately project profit margins.
As you go under contract, your broker then helps fine tune that estimate into hard numbers that are set and ready to go for when you get the green light to close. Once the closing date is set, it’s a simple matter of letting your broker know to update the lender with the details, and you’re ready to hit the gas!
It’s crucial to partner with a broker that understands your industry and can assist you in making educated decisions to move things quickly toward the finish line. Now, start your engines.
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