Posted by john on February 07, 2007 at 16:26:04:
What is patments?
The tenant is supposed to have a liability policy since they are in charge of any ground or structural improvements to the building. Do I need insurance on the dirt that I own underneath?
Just bought my first triplenet property - Posted by john
Posted by john on February 01, 2007 at 20:48:40:
Okay,
I finally did it. I’m only earning 6.1% true net, but hey it’s great location with a longterm lease and no landlord responsibilites. I couldn’t wait on the sidelines anylonger waiting for the perfect cap rate. The tenant owns the building, pays the taxes, insurance, and CAM.
My question is do I still need to get additional liability insurance for the dirt I own? Eventhough the tenant has their own policy?
Re: Just bought my first triplenet property - Posted by ray@lcorn
Posted by ray@lcorn on February 08, 2007 at 11:46:34:
john,
Read the lease to see what kind of coverage the tenant is required to provide. You should have been named as “additional insured” on the tenant’s liability policy. Review that coverage with your attorney or CPA or insurance agent and decide if it is enough. Depending on the amount of coverage (and whether you own additional properties) you may want to consider an umbrella liability policy as well.
ray
Re: Just bought my first triplenet property - Posted by Aprilsun
Posted by Aprilsun on February 02, 2007 at 09:26:48:
Congratulations!“The tenant owns the building”–No you are taking the risk and the tenant is helping with the patments. Protect your investment.
BTW, was it a name brand NNN? Did you get non-recourse financing?