Investor · New York City, NY · Member since 2017 · 117 posts · 29 votes
Lets see seasoned investors you take on this. I'm helping a friend with a house hack in New Jersey, in my many years of design and construction never had a half *** as the GC doing this job; completely mediocre expensive and awful to work with. we still have the outdoor to do that came with a different permit.
The GC, keeps telling he will charge for what he does, but I know he is waiting to do the outdoor because is a big number, and the last thing in this remodel. I could do it for half the cost, and double the quality.
My questions are; does the person certifying the job for the bank care if the GC in the papers was the one doing the job? or just that is done properly? do the town inspector care if the GC was the one who did the job. its just a deck and some fences.
Investor · Pawleys Island, SC · Member since 2015 · 324 posts · 385 votes
7y
To clarify, is the GC an equity partner that took out the loan or is he GC the one who quoted the work which was submitted to the bank to qualify for the 203K loan? If he's a partner, that is going to be a bad breakup.
If he is just the guy who gave the buyer the quote to give the bank, generally, the banks care more about the work getting done and protecting their interest than who specifically does the work. ABC Construction can submit a bid that the buyer submits to the bank, but XYZ Construction can actually do the work. If you have 2 bids and one is slightly higher, I would recommend you submit the higher bid and go with the lower all things being equal as budgets seem to always go over.
If the second scenario is the case, your buddy can absolutely fire his current GC and hire you as far as the bank is concerned. The bigger issue is how is it going to go with the current GC. Are there any contracts or entanglements with the current GC. Has he already paid for permits or purchased materials per signed work orders for the unfinished projects? Will he finish current work or will you take over midway? The switch details will be the question more so than the bank situation.
Investor · New York City, NY · Member since 2017 · 117 posts · 29 votes
7y
@Anna Buffkin
Thank you for your input.
The guy is just the GC appearing in the papers he is not a partner.
We are in middle of the proces, he has paid for some materials but didn’t get receipts yet. the bank pay the checks to him. And he gives the money my client expended in materials.
My guessing is we should clarify every number before telling him he will not be doing the second part and request he give all that bank installment to the client with the risk of some possible problems with him there.