All Forum Posts by: Bill J Fay

Hard to tell from that photo. Without looking at comps, I wouldn't waste your time finding and installing that paneling. It'll be cheaper and quicker taking the paneling out and making a clean finish. Just a heads up, be very careful buying half renovated properties. Who knows what that person was up to before they ran out of money.

I would separate. Talk to a tax professional.

Is the current partnership going well? Are you asking for pure opinions or has there been some cause of concern? If I was in your shoes, I would have them be actual partners and guarantee the loan with you. Split it down the middle and work it like a true partnership where the interest payment, tax, insurance comes out of the entity. With that being said, if you are happy in the current structure, I wouldn't mess with something that is working. I would chat with a tax professional to get their opinion. 

A designer is a great partner to have when getting into high-end properties in your market. You are leaning away from the typical design to attract the widest buyer pool and now getting into a niche buyer pool that will be picky for all the right reasons. A designer should help you pick out the correct scheme and also help source these as well. I would make sure your RE Agent has experience listing high end properties. This Agent should have multiple designers in their book of business.

Be weary of owner rent backs in California that extend multiple months. CA is a very tenant friendly state. Last thing you want is to not be able to get the renter out especially if you are on a hard money loan. Could be a win/win situation if you purchased and offered additional funds to move them out. Or a seller finance where you are playing a much lower rate. I would explore more options before diving in. 

-Your building department should have a list of registered and licensed contractors. 

-Go to your local Home Depot and ask if they have recommendations. Or go very early and talk to contractors that are buying material for a current project.

-Take photos of contractor's trucks as you drive around your market.

-Go to local RE Meet ups.

In order to move this into a business, you'll need to hire your crews instead of doing the work yourself. Being handy is a great way to start and learn the business but your time should be spent finding your team and the next deal.
Instead of swinging the hammer, focus on expanding your network:
1) Agent/wholesalers to send you deals and list them on the back end.
2) Contractors that allow a fast, efficient, value focused renovation.
3) Lenders that can allow you to close on properties quickly with solid leverage.

Definitely get a second opinion. Go into your building department and verify as well.

There are restrictions on how to finance mobile homes. Ask your Agent or Lender on what kind of mobile home qualifies for conventional financing so you have the widest buyer pool possible. Not many people are buying fixed up mobile homes with all cash. 

Quote from @Jesse Rodriguez:

Quote from @Nathan M kiefer:

Double down and fix it nice to sell but don't over improve. 

selling a headache will only give you a bigger headache that you'll need a aspirin the size of a hockey puck to overcome.

There are no shortcuts when you get into this situation that end well for you so put the work in and maybe you will make a buck?

My concern is because it’s a triplex, I’m limited to sell to another investor. I thought about improving a little but my hard money lender guy said don’t even bother putting any money into it. 

Your lender that financed this project told you not to put any money into it? I would not use this lender in the future. Make sure to work with a lender that does their due diligence before issuing you Terms. Now that you're in it, who are you using as your Agent? Are they investor focused? Do they also renovate properties? They should be your advocate to help come up with the correct exit strategy.