Preparing For Emergencies

As your real estate business becomes more valuable, more profitable, and more complicated you need to step up your game and become more organized and systematized.

Unless you are a real estate empire building hermit, you probably have people you care about that would need to step up and help should something happen to you. Now, something happening to you could be a temporary issue like an injury or illness that prevents you from working or managing your real estate business for a short period of time. Or, it could be something catastrophic like your number being called in the ultimate lottery.

In either case, it is critically important for you to leave detailed instructions to have someone you trust to step in and take over running your real estate business (and all your other affairs for that matter) should something happen to you.

We call this setting up an emergency plan and I find that about the time you acquire your third Nomad property is the appropriate time for you to document this for yourself and for the benefit of the ones you love.

So, we have some resources that are available to you with discussions related to setting up an emergency plan and the suggested steps for setting one up on your own.

First, there are two versions of the class I’ve taught on this. Here’s the class description and links to access both of them.

Emergency Plan Workshop

Boom! You’ve been hit by a bus! Is your business ready to be run by someone else in your temporary or permanent absence? In this workshop, you’ll leave with an emergency plan for someone to take over your real estate business. We will walk you through a series of exercises to document what you’d like your backup to know and do if you suddenly and unexpectedly are unable to run your real estate empire.

Secondly, here’s the abridged checklist we set up for creating your very own emergency plan. Just like with the checklists for the tenant turn-over, you should really access these on the website here:

https://LearnToBeRich.com/emergency-plan/

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Complete the "Emergency Plan" checklist:

https://LearnToBeRich.com/emergency-plan/

Mark complete when done.

Emergency PlanPost-ClosingUltimate Nomad ChecklistWeek 65

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Watch the recording of the live presentation of "Emergency Plan Workshop" available on:

https://LearnToBeRich.com/emergency-plan-workshop/

Mark this task as complete once you've watched it.

ClassesEmergency PlanUltimate Nomad ChecklistWeek 50

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Watch the recording of the live presentation of "Warning: The Dangers and Risks of Real Estate" available on:

https://LearnToBeRich.com/warning-the-dangers-and-risks-of-real-estate/

Mark this task as complete once you've watched it.

ClassesEmergency PlanUltimate Nomad ChecklistWeek 21

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Create your own "Emergency Plan" assuming you won't be able to talk or tell your Emergency Contacts any more than what you have written down, documented.

Once you've completed your own "Emergency Plan", mark this task as done.

Emergency PlanUltimate Nomad ChecklistWeek 50

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With the help of your Attorney create a Will that will document who is responsible for taking over should you die.

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Emergency PlanUltimate Nomad ChecklistWeek 50

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Determine who your Primary Emergency Contact will be.

You'll need their name, address, phone and email.

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Emergency PlanUltimate Nomad ChecklistWeek 50

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Email or call your Primary Emergency Contact for your Emergency Plan to tell them where your Emergency Plan is located and how they can access it should something happen to you.

Emergency PlanUltimate Nomad ChecklistWeek 51

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While having your Primary Emergency Contact listed in your business Operating Agreement will give them the ability to step in and manage your business should something happen to you, they may need a Limited Power of Attorney to manage your personal affairs.

With the help of your Attorney give your Primary Emergency Contact a Limited Power of Attorney so they can handle your affairs should you become injured or incapacitated.

Emergency PlanUltimate Nomad ChecklistWeek 51

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With the help of your Attorney, add your primary Emergency Contact to your LLC Operating Agreement as who takes over as manager in case you're injured, incapacitated or die.

Let them know they're to take over as manger if something happens to you.

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Emergency PlanLLCUltimate Nomad ChecklistWeek 50

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Make sure your primary, backup and third Emergency Contact all know the others. Send each of them the other's contact info in case there is an emergency for you and they need to contact each other.

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Emergency PlanUltimate Nomad ChecklistWeek 50

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Make sure your Primary, Backup and Third Emergency Contact all know your Attorney's contact info.

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Emergency PlanUltimate Nomad ChecklistWeek 50

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Create your own "Emergency Plan Summary" sheet and tell your Primary, Backup and Third Emergency Plan contact and your Attorney where it is located. For example, you might have a copy of it in your safe in your home and you have a key to the safe on your primary keychain.

The "Emergency Plan Summary" should list the following information at a minimum:

  • Name, address, phone and email of your Attorneys
  • Name, address, phone and email of your Primary, Backup and Third Emergency Contacts
  • List of all your properties (rentals and owner occupied)
  • List of tenants in each property and where to find their tenant file
  • List of all your bank, savings and investment accounts with account numbers, logins and passwords
  • List of all your LLCs, trusts and other entities, what is in each and who is to run them should something happen
  • List of all your mailboxes and where the key is to each
  • List of all your email accounts and password for accessing each
  • List of all your insurance policies and the Insurance Agent for each
  • List of all your Powers of Attorney, who they're with and where to find each
  • Location of your Will
  • If you've buried or otherwise hidden any treasure, a map or at least clues as to where to find it
  • Your preferred referral list for all your contractors and professional advisers
  • Documentation on your key business processes (how to run your business if you're not there)

Mark this task as complete when done.

Emergency PlanUltimate Nomad ChecklistWeek 50

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Store an off-site backup of your "Emergency Plan Summary" sheet in case of fire, floor or other issue with your primary copy of your "Emergency Plan Summary" sheet.

Example might be you store your primary "Emergency Plan Summary" sheet in your locked safe in your office. You could keep a backup in your safe at home.

Another example might be you store your primary "Emergency Plan Summary" sheet in your locked filing cabinet at home and your Attorney has a second copy in his locked filing cabinet in his office.

IMPORTANT NOTE: My personal Attorney suggested NOT using a safe deposit box as they can be hard for your Emergency Contacts to access should something happen to you.

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Emergency PlanUltimate Nomad ChecklistWeek 50

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Sit down and go over your entire Emergency Plan with your Emergency Contacts so they're familiar with it and how it is setup.

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Emergency PlanUltimate Nomad ChecklistWeek 50

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Make sure you update your "Emergency Plan Summary" sheet yearly.

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Emergency PlanUltimate Nomad ChecklistWeek 50

The time to plan for the inevitable is before it happens. That means the time to plan for an emergency that could happen at any time is right now. Don’t put this stuff off. If you truly care for the people closest to you that will need to be responsible for this should something happen to you, you will set up your own emergency plan now. Failing to do so is a real jerk-move. So, don’t delay… do it now.

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