All Forum Posts by: Mark Mynhier

This is a bit complicated (or maybe I am making it that way), but here goes.

I hired a contractor, after vetting her and seeing her work. We signed a contract with a few specifics in it that are applicable. First, that everything has to be done to Code and second that there is a penalty if she goes over the time allotted for the rehab.

She was a nightmare contractor - making changes because she has flipped a few houses and thought that it would be better "her way" rather than my way. Never staying in communication with me, etc. End of story is that the rehab was not done to Code and she never finished the job. I had to hire someone else who helped me find qualified workers to finish the job since she wasn't responding to e-mails or phone calls. After the house was sold (and she couldn't put liens on the house), I sent her a bill for the work that had to be done and the 88 days that she was late (the penalty clause). She came back with "after extensive research" she believes that she does not owe me the $9,800 that the penalty and other work include.

My plan is to take her to Small Claims Court (max award is $10,000 in California) for the bill. I have photos, etc. of the work that wasn't done properly as well as my original contract. I know how to handle Criminal Court (part of my day job), but Civil Court is beyond my experience. What should I know to prepare myself when I get to Court. Should I put in a complaint against her license before or after the law suit is filed?

Any general advice on suing a Contractor would be appreciated. I did contact a lawyer about the forms and procedures, but the actual "in Court" stuff is what I don't have experience with.

I've done both ends, and the real answer lies in your comfort zone and how fast it will sell. A million dollar house, if you use an HML, will have a holding cost of about $10,000 a month. That scares some people. If it is your first house, I wouldn't suggest it. If you are comfortable with it AND it has solid market research behind the ARV, then by all means go for it. Remember, the bigger the risk the bigger the reward.

Here in LA, many of the deals are at or over $1M so it is just the nature of the game. There are many that aren't, but there is a lot more competition for them and the yields are much smaller.

So, go with experience (or find someone with the experience to go into it with you) that you have and build into the market that you want.

@Panayot Tomov, give me a shout if you want to get together and discuss things. I'm right around the corner from you in Pasadena.

Mark

If you put it in a land trust and then sell the land trust, the property taxes will not go up (should not), since there is no sale of the property, only the paper. Other than that, the deal looks solid. Congratulations. 

There really are mentors out there. You just have to find them and work out a suitable barter for your education. Sometimes it is partnering on deals with a work/equity distribution or sometimes it is simply working for "free" while looking over someone's shoulder. Many mentors, though, don't think of themselves as such. They are just people who feel good about helping people. Those are much less formal, but still very valuable. You have to network to find the good ones of either sort.

Another route is S.C.O.R.E. They are individuals who give their time strictly to mentor people. In general, they are retired business executives, but they don't have to be. They are in the business of helping small businesses. I know that I have had a couple of very valuable conversations with one of their mentors.  Their site is also great when it comes to education.  www.score.org

I hope this helps.

@Christopher Friedman, there is a great FIBI (For Investors By Investors) meeting in Pasadena on Thursday...no pitching, all education (no pitching allowed!) It is a great place to start and network with some real power players here in the Los Angeles area. I'm going to be there if you want to say "hi" and talk the LA market.

Mark

p.s. Nerdy board games are cool...they keep the brain working.

I'm pretty sure that gun ownership is a constitutional right, so banning them may be a problem. This may be especially problematic if it was not in the original contract and now you are trying to do something to add exclusions to the contract. THIS is a question for an attorney.

Mark

Freddie,

I'm in Los Angeles, but if you want to talk about real estate and want coaching, shoot me a line. I cannot say that I've done 100's of deals, but I have done some. I had great coaches in many aspects of my career and coach (I coach for Landmark's Self Expression and Leadership Program as well as partner with new investors in real estate to help them learn).

As a full time government worker (forensics) and part time real estate investor, I understand what it is like to try and balance both careers.

Let's connect up and talk...at the very least I can give you advice on finding a good mentor.

In Los Angeles there is a limit to 3 dogs and 3 cats unless you are a breeder with a license (I used to run a dog rescue and got very familiar with the laws). I would suggest that you inform them of the law and let them know that you would appreciate them staying within the limits of both the lease as well as the law. The other thing that you can do is to tell them that you understand that they are housing three more dogs so you need an additional $750 pet deposit ($250 per dog) if they wish to continue.

I'm an animal lover, but I also know that it isn't healthy for 5 dogs to be in that small of a space...and as a business person, it isn't good business, either.

I'm not an Agent, but I know several - and am always in the market for another good Agent who understands flipping. Let's connect and see how we can work together.

Mark

310.923.6184

Yvonne,

Wish you had posted this earlier. Club in Action in Burbank just had a guy speak on Land Trusts last night. There are plenty of good (and less expensive) ways to learn about land trusts than paying an attorney. On BP there should be many people who use land trusts in their business. Just reach out and try connecting with them and picking their brains on how to do it. 

Randy Hughes sells a course in it (not saying to buy it but he is very knowledgeable) and has a bunch of YouTube videos on the subject (https://www.youtube.com/channel/UC4NPD56Yi0Ym7vrYz...). That might also be a good place to look.

Find people on here to educate yourself. Most people enjoy helping new investors...I know that I do.