All Forum Posts by: Jared W Smith

@Account Closed is to get a local architect on-board, and yes as Mike said, contact a few and make sure they deal with single family home renovations. Once you settle on one, they should have contacts for contractors to complete the work. And unless you have some specific style requirements and absolutely need an interior designer, with the help of your architect, you should be able to choose the finishes. This is a rental so I'm assuming you're not going with anything high-end. The more complex to construct or non-standard finishes = more money. 

Working directly with a contractor may be risky, especially if you do not know exactly what you want, need or is required. 

Process with my clients goes: 

1. After selection of architect, work with him/her to get a well thought out scope of work. They can look into any Code, Zoning or Structural issues if necessary. (Depends on complexity) 

2. File plans for permits if necessary. If not, bid your scope of work to at least 3 contractors. 

3. Select contractor and agree on fee in contract. 

4. Contractor(GC) brings necessary trades/subcontractors to project and they all complete the work as detailed from architect. GC is responsible with coordinating his team and their work as well as making sure ordering materials, site safety and clean up just to name a few. 

5. If you are weary of the whole construction process (and not know how complex of a renovation you are looking for), your local architect will usually have construction administration service which basically is overseeing the construction process on your behalf to ensure you get the end result you wanted. 

All in all, if it's minor renovation, tile work, flooring, changing plumbing or lighting fixtures, paint.. Then going straight with a contractor may be fine. Just be sure to be as detailed as possible when putting your scope together. If permits are necessary, I'd enlist an architect to make sure things run smoothly and you don't have headache from Municipalities. 

@Mark Dante Maybe it's your locale, but I find this odd that they've essentially blindsided you with an RFP. Most times if the landlord is fitting out the space, it is well known and the Owner approaches the tenant requesting details on what they'd like done. This is generally minor alterations. However in most circumstances I've seen, the tenant takes the space and completes the fit-out on their own with their own Architect/Engineer & Contractor. 

They are essentially pitting you against other properties for whom will fit-out their space for the cheapest. I'm not sure this should be your responsibility. Furthermore, you are right- without an architect on board you have no idea what all the work will cost nor what or how it should comply. And even further furthermore- if you fit-out the space and something is a noncompliance for the zoning, building code, or ADA/Accessibility, guess who's liable to get sued? You. Most owners don't want to be involved for this reason.  

In my honest opinion, it's their space, they should be responsible for the fit-out and complying with all applicable codes since they and their customers/workers will be utilizing the space.  

 Thank you Ryan. I will read through the article. 

Hello BP, Still new and gaining more knowledge day by day.  

With my 9-5, I am part of a legal plan and have been for about 3 years. I've used it for legal questions in the past and just recently used it substantially with the purchase of my new home (primary residence). Long story short, it was like two house since I lost a house right before closing and had to start over. Nevertheless, I paid zero out of pocket for the whole process due to this legal plan.  

I know having legal representation is vital in real estate investing. With a list of local real estate attorneys from the network, I am seeking to bring one or two onto my team for inquires and future dealings. It's likely I will not have to pay them for anything related to a purchase or sale (included with plan), therefore I'd like to have someone experienced. 

Other than asking them flat out "Do you work with investors?" what other things should I ask them? 

The Zoning is the lesser of the problems likely to be problematic. The Building Code however could make certain requirements impossible to adhere to (such as light and air, egress, fire seperation, etc.) . And unless you have a VERY good agent, they're not likely to know enough information about zoning and building codes. I'd contact a local architect for an hour consultation.  

Thank you Scott! I need to do my research to really figure out what I want to do and how to go about doing it. 

Thank you for responding @Ceasar Rosas. I will private message you. Would love to connect also. 

I am strongly consideration going the route of purchasing distressed and/or vacant properties (commercial, factory, warehouse, multi-family, etc.) for development in an effort to restore neighborhoods. If I am helping to partially financing them but bring on other investors that support my plan/idea (I don't know if they will be partners or purely financial backers), does that make me essentially a developer? Doesn't seem like a business venture I should undertake without forming an entity for the legality of it all.    

In the architecture realm this concept has been around for some time. I am an architect and have read several related articles. The logistics of their use for housings is not what one would think. 

As @Chris Seveney mentioned, the local zoning and building codes could make utilizing them very difficult. However the main problem is developers and general public think you can just buy them and stack them up and cut openings where you need and viola you have a house. Not the case. The containers are designed for their use, transport contents. When you cut openings, you severely undermine their structural capabilities. Then theirs always windows, MEP and HVAC. Plus in areas with temperature swings will required moderate to heavy insulation. Unless the plans have taken all these things into consideration, then they aren't worth  purchasing. AND even if they have this well thought out plan, the cost of fabrication and construction will rival a traditional new build. 

I am eager to get into real estate investing but currently planning my exit strategy from a previous purchase. 

Firstly:  In 2009, my wife and I purchased a coop for $90k. Seemed okay at the time however with the downturn of the market, this was probably too high. We got $8k back as first time homeowners from IRS/Govt incentive program which we added to our renovations. We spent $14k in this one bedroom unit. We over spent for the area. Yes another bad choice. However things got worse. 

Years later we found out in more detail about the make-up of the building. Unbeknownst to us nearly 40% of the building is owned by the "Sponsor" which rents out their units. Our attorney did not alert us to this factor which would have greatly influenced our purchase. Fast forward to 2017 it has become the biggest hassle dealing with other non-owner tenants. In our attempt to sell this property, no banks are willing to provide loans to purchase within the building. They cited unstable building financials and high renters %. Ultimately we have it rented out and will be looking to sell this property in 2019. We hope to not take a lose. (Any Westchester Realtors / Real estate agents here whom can help me in this future sale, likely to be a cash only?)

Secondly: So with the frenzy in the SFH NY market, my wife and I purchased a 1960 Colonial in the end of 2017 (an estate sale) at $350k with 3/1.5 1700 SF + 450 SF finished basement and garage. We renovated the kitchen and both bathrooms for $37k. Area exceeds $500k values for similar homes in an un-renovated state. My plan is to refinance and pull some money out for a down payment on a multi-family property (possibly 3 or 4-family). I also already have a $30K LOC for additional down payment or renovation cost. (I am not taking the coop sale profits into consideration.) I am looking to do a buy and hold strategy.

BP has been immensely helpful in weeding out information I need and helping me to figure out what I want to do. Any insight or comments I happily welcome. 

Thank you in advance