Save yourself thousands when taking over utilities.
Last quarter I found out that you could use surety bonds to open utility accounts at commercial real estate versus paying one month in advance deposit that’s held for two years. 

My former employer didn’t believe in properly capitalizing new buildings or setting aside reserves , so every time I had to open a new utility account he would blow up at me.

Last quarter I had a factory that was 160,000 ft.² based on the occupants previous consumption, to turn on the electricity was $35,000, it had no tenants or revenue coming in and no money in the bank account because my boss had distributed the reserves I put in. 

At the same time, he was acquiring a medical building and the utilities there for the parking lot lights etc. was $15,000  as a security deposit. 

Two companies, no capital or reserves and my job to come up with $50,000. 

That’s when I dug deep and I found that you can use a surety bond instead, I got all the utilities turned on for $1500 at both locations.

If anybody wants more information on this practice please send me a message and I will send you over info and contacts if you want to stop paying the utility security deposits too!
[{"id": "ioq62x8", "text": "I\u2019d be interested in the info", "replies": [], "depth": 1}, {"id": "ioqc2j7", "text": "That\u2019s great to know. Can you elaborate please", "replies": [], "depth": 1}, {"id": "ioqevg6", "text": "Why can\u2019t you post it? DMs sound like promoting your own surety company", "replies": [{"id": "ior14t5", "text": "I wish", "replies": [], "depth": 2}], "depth": 1}, {"id": "ioqh7e9", "text": "Yeah we all want to know!", "replies": [], "depth": 1}, {"id": "ioqvo99", "text": "Please post it!", "replies": [{"id": "iouxc1b", "text": "I did!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ior1xiu", "text": "Great that makes me so happy. \n\nJust ask your utility company when you set up your new account/s to send you the surety bond paperwork they need as you would prefer to not pay the deposit. Be sure to ask for specific return address info for returning all your documents. \n\nThen call the insurance company that you used to insure your building. And tell them what your doing, and they will send you a surety bond application for each utility account that is over $1,000 to open. \n\nYou will have to show tax returns or company ledgers for x amount of months. Submit back to your insurance agency. They will issue the bonds. Send all the paperwork back to the utility company. \n\nDone. \n\nI don\u2019t have an insurance company. But I do have an amazing agent who will not be beat on pricing for any commercial building policy ever. He will write bonds for anyone as long as they qualify, you don\u2019t have to purchase insurance through him for surety bond assistance. But if anyone does want his info, that I would ask that you DM me since it\u2019s cell and email address\ud83d\ude09", "replies": [], "depth": 1}, {"id": "ior2d4e", "text": "I\u2019ve done this. The company I use is a1suretybonds.com", "replies": [{"id": "ior2u5v", "text": "I asked the utility companies for years if I had to pay the deposit\u2026they always said yes. Finally a knowledgeable and or representative told me about doing it this way!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ior2h9y", "text": "If you use this, let me know so I can it my sales pitch as I\u2019m looking for jobs. Helped 10 building owners save $500,000 this year lol thanks!", "replies": [], "depth": 1}, {"id": "ior38fa", "text": "Www.JennaOperatesCRE.com\n\nI will post more of my tips and tricks here, but if anyone wants to check out my website where I talk about things\u2026. Please do.", "replies": [{"id": "iot737c", "text": "Why is this being down voted? You shared something educational and potentially helpful to people, why should you not get credit for that? God forbid anyone tries to network to grow their business. We should all just provide free help to others without wanting anything in return.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iosb6il", "text": "You understand what a deposit is vs a bond right?\n\nYou are just using an insurance company's money vs your own, and paying for the privilege at a rate of around 3-10% year.", "replies": [{"id": "iosq0iq", "text": "Covering the deposit for pennies on the dollar? Yes, please.", "replies": [], "depth": 2}, {"id": "ip7ptjp", "text": "It comes down to \n\n1) Math: What's your opportunity cost vs the 3-10% interest? and \n\n2) In this guy's case, do you even have the cash to begin with? :)\n\nLooks like he found a good solution for minimal costs. Kudos to him.", "replies": [{"id": "iwbexqc", "text": "She did, yes I did.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iot2tl8", "text": "Your utility should have told you about the option the first time you called.  I haven\u2019t paid a deposit in years. \n\nAlso banks will do this for $500-1000 flat fee if you get the loan for the RE with them. It\u2019s called a Letter of Credit. \n\nYou should also ask about Landlord power if you have SFR properties. 3 months of power with no deposit. Generally gets you enough time to place a tenant and have them transfer utilities.", "replies": [{"id": "iwbf0tm", "text": "What is SFR properties?", "replies": [{"id": "iwbi1ti", "text": "Single family rental", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iot3oqo", "text": "I dont really understand how this is saving thousands? You're surety bond is still a guarantee that you will pay the utility company, if the biz fails to pay the utility co now has a lean on the biz...", "replies": [{"id": "iouy7s8", "text": "We would not default. We had other companies to inter company loan from in an emergency, but they didn\u2019t consider this an emergency.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ioux5wx", "text": "What would anyone else do in the situation I was in if you downvoted? I\u2019d love to hear a better solution that might help everyone.", "replies": [], "depth": 1}]