“In all natural disasters through time, man needs to attach meaning to tragedy, no matter how random and inexplicable the event is.” Nathaniel Philbrick

As we see all around us the destructive fires that are destroying communities, we all wish a speedy end to the wildfires and all the death and destruction.

An uneasy thought comes to mind- what if it were my home or my building or my property? Am I adequately protected?

DO YOU HAVE A GOOD INSURANCE BROKER? I have been working with the same broker for several years. He has always done a good job for me for all my insurance needs. If I get a cancellation notice on my multi unit property, which is increasingly common, he always finds a good insurer to replace the coverage. It seems that the most difficult is my multi family units, because I have older units and even with no claims it can be difficult. The larger insurance companies are trying to move from offering coverage in California because of the fire danger.

YOU MAY BE CANCELLED. If you haven’t already been cancelled, you may be at any time. If you do nothing, your lender will arrange insurance (it’s a condition of your loan). The problem is that the coverage the lender will obtain will only cover the lender and it will be quite expensive as well. There is assigned risk coverage through the State of California, but that could also be very expensive and in most cases you will only have 30 days to secure coverage. It is a good idea to always be looking or, at least, have a good broker who is always looking on your behalf.

UMBRELLA COVERAGE. This can cover other items that could take place, for instance, a personal injury on your building or even an auto accident on your property which may not be covered. Additionally, it is also a great idea to require tenants to maintain renters insurance on your property. In the case of theft or fire or even earthquake, this could amount to many thousands in liability or more with larger buildings.

BEST ADVICE. The best thing is to learn more about insurance . Know your policy limits and what is covered and what is not. Also find one or more professionals you can work with to make sure the have the right amount of insurance. You should probably review your coverage once a year and if you are lacking, get some bids. With our current situation, the insurance companies will be busy, but keep trying and ask for referrals from friends and the Apartment Owners Association.

“You have no choices about how you lose, but you do have a choice about how you come back and prepare to win again.” Pat Riley

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.

We look forward to a prosperous 2025 and we look g= forward to be of any help we can to buyers and sellers of multi unit properties.