THE DEED BRIEF
📊 QUICK POLL (5 sec - no wrong answers)
We’ll tailor next week’s tactic to the top concern.
When do you typically check real taxes/insurance?
📊 LAST WEEK’S RESULTS
Last week, 43% of you said rising taxes & insurance was your biggest concern. Today's playbook solves it.
⏳ TL;DR
Q: Why do seasoned investors always close while rookies' deals die?
A: Pros make two calls before touring. County tax: "Annual tax? Does it reset at sale?" → divide by 12. Insurance broker: "Landlord policy quote?" → get monthly. Then add 20% buffer. This is the difference between amateur hour and actually building a portfolio.
WHAT ROOKIE INVESTORS MISS
The homestead trap: Your investment property loses the exemption = instant 20-30% tax jump
The insurance reality: Landlord policies cost 25-40% more than homeowner quotes
The pro move: Convert these surprises into seller credits before closing
🧲 MARKET CHECK (INVESTOR INTEL)
Rates: 30-yr investor loans ~6.8% (0.5% above owner-occupied) Freddie Mac
Time on market / inventory trend: Active listings +15.3% YOY, median time on market 63 days. More choice, more time to negotiate. Realtor.com
Rents/vacancy: National rent roughly -0.8% MOM; -0.9% YOY; vacancy ~7.2% (record). Apartment List
Insurance: Investor policies up 35% YoY in storm states
Taxes: Non-homestead rates averaging 1.2-1.8% vs 0.8-1.2% homestead
Investor legend: 📦 Always verify non-homestead rate • ⏱ Quote before touring • ✂️ Every surprise = negotiation leverage
Our take: Amateur investors guess. Professional investors verify. Which one closes more deals?
🏡 THIS WEEK’S MOVE
The Two-Call System Every Pro Uses
Here's what separates investors with 10+ properties from those stuck at zero:
Call #1 — County (3-4 min):
"I'm an investor looking at [address]. What's the current tax? What's the non-homestead rate when it resets?"
Real investors know to ask for BOTH numbers.
Call #2 — Insurance broker (3 min):
"I need a landlord/investment property quote: [address], tenant-occupied"
Say "investment property" not "home" - completely different pricing.
The Investor's Buffer:
Standard property: +20% to all quotes
20+ years old: +30%
Coastal/fire zone: +40%
Pre-1970: +50% (pros know why)
🧑💻 INVESTOR CORNER - REAL EXAMPLE (educational)
The rookie mistake: Trusting the listing
The setup: $325k duplex showing "$380/mo taxes"
The reality check:
Owner's homestead rate: $380/mo
YOUR investor rate: $485/mo (+$105)
Owner's insurance: $125/mo
YOUR landlord policy: $215/mo (+$90)
Total surprise: $195/mo ($2,340/year gone)
The investor's negotiation:
Rookie: "Can you drop the price $5k?"
Pro: "$195/mo gap needs $4,700 credit for buydown, or drop $30k"
Result: Seller gives credit (keeps headline price pretty)
Why pros win: We speak seller (headline price) but calculate like investors (monthly cash flow).
🔎 DEAL DECODER
THE INVESTOR'S NEGOTIATION LADDER
How Portfolio Builders Handle T&I Surprises
Level 1 — Credits for Cash Flow
"The non-homestead rate creates a $150/mo gap. Standard investor math: $3,600 credit."
Investors always convert to monthly cashflow first.
Level 2 — Terms That Build Portfolios
"Keep your price. I'll take: 60-day close for my 1031 exchange, inspection for informational purposes only, you cover rate lock."
This is how investors with 5+ properties negotiate.
Level 3 — Price (Last Resort)
Smart investors rarely cut price first.
Why? Credits help Year 1 cash flow. Price cuts are forever.
Investor Move | Monthly Impact | When Pros Use It |
|---|---|---|
T&I verification credit | $100-200 | Every non-homestead deal |
Seller-paid buydown | $110-150 | When holding 3+ years |
Price cut | $60-70 per $10k | Almost never - typical in cash deals not financed deals |
🎯 ONE ACTION (90 seconds)
Right now, save these in your phone:
County Tax: ___________
Investor Insurance Broker: ___________
Label them "INVESTOR TOOLS"
Next property → introduce yourself as an investor and run both calls BEFORE bidding.
Pro script for insurance:
"I'm an investor. Need a quote for tenant-occupied rental property: [address], standard investor deductibles.
🔥 WHEN COMPETITION GETS HEAVY
Different game - investor advantages: cash/hard money, no contingencies, fast close, buying as-is. Skip the credits—win on speed and certainty. This is where real investors separate from retail buyers.
📊 INVESTOR INTEL
The stat pros track: Non-homestead penalties by county
Why it matters: Some counties add 50% to the base rate for investors
The opportunity: Counties with low investor penalties = better cash flow
Your move: Build a database of investor-friendly counties.
🌐 SOURCES
PMMS (Nov 20): 30-yr fixed 6.24%. Freddie Mac
NAR (Oct): Inventory ~4.4 MOS. National Association of REALTORS®
Realtor (Oct): Time on market ~62 days, active listings up 17% YoY. Realtor
Apartment List (Nov): Rents −0.9% YoY; vacancy 7.2%. Apartment List
TradingEconomics: Housing data, downloadable charts
⚖️ COMPLIANCE
Education for real estate investors, not financial/legal/tax advice. Investment property taxes and insurance requirements vary significantly by location. Always verify non-homestead rates and landlord insurance requirements before making offers.
Get home insurance that protects what you need
Standard home insurance doesn’t cover everything—floods, earthquakes, or coverage for valuable items like jewelry and art often require separate policies or endorsements. Switching over to a more customizable policy ensures you’re paying for what you really need. Use Money’s home insurance tool to find the right coverage for you.
Until next time,
P.S. That "great deal" with low taxes? The seller lives there. You won't get their rate. Every pro investor knows to add 30% minimum. Now you do too. Welcome to the club.
Your 10-minute real estate playbook starts here
