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SpruceProtect: HOA Guarantee Q&A with VP Jonathan Gearhart

Home Insights & Resources
Jonathan Gearhart
April 17, 2023

In the world of real estate investment, hidden rental restrictions within Homeowners Associations (HOAs) can be a costly and frustrating surprise for investors. Until now, there hasn't been a solution that provides financial protection for investors facing rental restrictions due to HOAs. Enter SpruceProtect – the first and only offering of its kind designed to provide investors with a safety blanket to protect them from potential losses. This groundbreaking solution grants financial coverage for rental restrictions that could hinder the rentability of an investment property located within an HOA. Why did Spruce build this offering, and how does it benefit their investor clients? We sat down with our VP of Strategic Partnerships, Jonathan Gearhart, to answer these questions.

What is SpruceProtect?

SpruceProtect is a groundbreaking solution for investors who acquire rental properties located within HOAs. It's the first and only offering of its kind, designed to provide financial coverage for rental restrictions that could hinder the rentability of an investment property. With SpruceProtect, investors can breathe a little easier knowing they have a safety blanket to protect them from potential losses.

This offering provides an opportunity to recover losses up to $50,000 (with an additional endorsement fee per property) if their properties cannot be rented due to HOA restrictions. I believe this is a game-changer in the industry, and it's affordable and easy to obtain. Speaking frequently with investors of all sizes, it’s clear that having a solution like SpruceProtect in place would provide some peace of mind.

Why did Spruce build this offering?

Real estate investors and professionals have been telling us about the headaches they face with HOAs post-purchase. There are a lot of complexities involved, including inconsistent bylaws and contracts, as well as amendments that are never filed. This can lead to hidden rental restrictions that are impossible to locate until after a property is listed for rent. And that can be a costly mistake, resulting in non-recoverable expenses such as re-listing fees, closing costs, and loss of rental income.

We built SpruceProtect to help investors navigate these challenges and provide them with financial protection. It's a unique offering that can offer investors a safety blanket: an opportunity to recoup losses up to $50,000 (for an additional endorsement fee per property) if their properties cannot be rented due to an HOA restriction. With SpruceProtect, investors can have peace of mind and focus on what matters most - growing their real estate portfolio.

What makes it unique?

Well, SpruceProtect is the first and only offering of its kind, created to address the lack of solutions available to protect your investments. It’s even easier than it sounds to take advantage of SpruceProtect. Once you’re a Spruce partner, our team can easily activate SpruceProtect for future transactions. 

How does it benefit Spruce’s investor clients?

With SpruceProtect, Spruce’s SFR clients can protect their investment with previously unavailable coverage in the event that their properties cannot be rented as a result of an HOA restriction.

Set up a time with our team to learn more about SpruceProtect

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Article by
Jonathan Gearhart

SpruceProtect: HOA Guarantee Q&A with VP Jonathan Gearhart

In the world of real estate investment, hidden rental restrictions within Homeowners Associations (HOAs) can be a costly and frustrating surprise for investors. Until now, there hasn't been a solution that provides financial protection for investors facing rental restrictions due to HOAs. Enter SpruceProtect – the first and only offering of its kind designed to provide investors with a safety blanket to protect them from potential losses. This groundbreaking solution grants financial coverage for rental restrictions that could hinder the rentability of an investment property located within an HOA. Why did Spruce build this offering, and how does it benefit their investor clients? We sat down with our VP of Strategic Partnerships, Jonathan Gearhart, to answer these questions.

What is SpruceProtect?

SpruceProtect is a groundbreaking solution for investors who acquire rental properties located within HOAs. It's the first and only offering of its kind, designed to provide financial coverage for rental restrictions that could hinder the rentability of an investment property. With SpruceProtect, investors can breathe a little easier knowing they have a safety blanket to protect them from potential losses.

This offering provides an opportunity to recover losses up to $50,000 (with an additional endorsement fee per property) if their properties cannot be rented due to HOA restrictions. I believe this is a game-changer in the industry, and it's affordable and easy to obtain. Speaking frequently with investors of all sizes, it’s clear that having a solution like SpruceProtect in place would provide some peace of mind.

Why did Spruce build this offering?

Real estate investors and professionals have been telling us about the headaches they face with HOAs post-purchase. There are a lot of complexities involved, including inconsistent bylaws and contracts, as well as amendments that are never filed. This can lead to hidden rental restrictions that are impossible to locate until after a property is listed for rent. And that can be a costly mistake, resulting in non-recoverable expenses such as re-listing fees, closing costs, and loss of rental income.

We built SpruceProtect to help investors navigate these challenges and provide them with financial protection. It's a unique offering that can offer investors a safety blanket: an opportunity to recoup losses up to $50,000 (for an additional endorsement fee per property) if their properties cannot be rented due to an HOA restriction. With SpruceProtect, investors can have peace of mind and focus on what matters most - growing their real estate portfolio.

What makes it unique?

Well, SpruceProtect is the first and only offering of its kind, created to address the lack of solutions available to protect your investments. It’s even easier than it sounds to take advantage of SpruceProtect. Once you’re a Spruce partner, our team can easily activate SpruceProtect for future transactions. 

How does it benefit Spruce’s investor clients?

With SpruceProtect, Spruce’s SFR clients can protect their investment with previously unavailable coverage in the event that their properties cannot be rented as a result of an HOA restriction.

Set up a time with our team to learn more about SpruceProtect