You get a call one day from the fire department, telling you, “You’ve had a house fire that’s destroyed your rental property.” What do you do first? Check on the tenants, call the insurance company, or start thinking of ways to financially recover? Your tenant has lost all their belongings; you’ve lost an investment you worked hard to acquire. If everyone is safe, what’s the next step you should take? Or, a more important question: what would you have wished you knew BEFORE this happened?
If you think the elite investors at BiggerPockets are immune to these tragedies, you’re wrong. BiggerPockets CFO Aaron Sallade was in this exact position earlier this year when he got a phone call no one wants to receive. His property was destroyed, but thankfully, his tenant walked away unscathed. He now needed to go through the next steps: submitting insurance claims, getting restoration quotes, and, if he chose to do so, selling the property.
Aaron shares the entire timeline from the rental burning down to reaching out to insurance, getting restoration quotes, and eventually deciding what to do with the property. He even dives into what he wishes he had known BEFORE this tragic event, and not hearing his advice could cost you!
Ashley :
This is Real Estate rookie episode 430. My name is Ashley Care. What would happen if your investment property burned down? Welcome to the Real Estate Rookie podcast where every week, three times a week, we bring you the inspiration, motivation, and stories you need to kickstart your investing journey in real estate. Sometimes you have to turn a worst case scenario into a best case scenario, even if you did everything right. Our guest had to do just that. In March of this year, he lost his first rookie deal in a fire. We are bringing him on the show to discuss what is the insurance process like for dealing with a fire? Does it make sense to keep the property or to sell the house? And why it’s always important to read the fine…