All Forum Posts by: Brad S.

Hello, need expert advise. I have 2 properties (with their own loan) and more than enough equity in one to cover the second one. The interest rate on those are high so I am going to refinance. I am debating if I should refi one with cash out and pay off the other. Other than the benefit of rolling in closing cost is there any other advantage / disadvantage of doing that ? Any tax implication. Both properties have been rented for more than 5 years.

@Jim Goebel thanks! I would really love to hear evryone’s thoughts on franchise vs self starting, especially the marketing aspect of it, do PM franchise (and the brand) really help in getting from 0 to 100 units quick and is it really worth the upfront cost and ongoing split.

Hello, I am a general contractor with part tIme crew, they are skilled and trustworthy but I can’t hire them full time because I do not have steady stream of revenue, we specialize in kitchen and bathroom remodel, during summer we are quite busy but thIngs slow down startIng Oct till late Feb / March. I have been thInkIng of signing up for a property management franchise (my wife is a realtor) so I can hIre them on my payroll. I have got some great advise from experts at this forums In past, looking for your thought on thIs. Thanks for your time!

Howdy BP fellows! I just got my California General Contractor license, my mid term goal is to start a property management company, does being a general contractor helps in any way starting the business (other than ability to pull permit and build / fix things). I read somewhere that I need a broker license to start a PM business, does it mean I need to be an agent for 2 years, pass broker exam and then look into it? Since this is something I am looking for in next 2-4 years I do have time if I need to go that route but wondering if anyone know if contractor lic can be substituted for broker. Thanks for reading and let’s make it an amazing day for our loved ones.

Zain Bhayani we all learn our lessons one way or the other, glad u didn’t had to pay a lot for it. With ur new Contractor get everything in writing, work that needs to be done (lots of details, as much as u can) payment schedule, tentative completion date, and keep receipts of all payments, once I had to pay Contractor twice because I lost the receipt (it was very small amount though).

Joshua Brooks I would say u are doing the right thing, just make sure u build up ur reserve for larger expenses that will come up, and they do will, like roof, plumbing, HVAC, appliances etc, don’t stress take is easy, any of these expenses will be “cost of doing business”, any other investment will involve a lot more risk with this kind of return (think long term). Remember u can’t retire of 1 mil $ but u can retire of (pick some number, say 2-5k) assured income per month, plus u got something u can pass onto ur kids. I would not refi in ur situation if you have already locked in low primary residence rate.

Thank you @Katherine S that looks pretty good, I will check it out. You mentioned it keeps track of material and cost, that’s an excellent idea especially for large rehabs, thank you for your time!

Zain Bhayani industry standard for paying a contractor in ur case would be by milestone, you both identify major milestones in ur project and decide what it’s worth. The law in California is 10% or 1000 whichever is less at the start, for the rest they advise customers to make payments by milestones and never pay more than work done. There is also 10% retention factor, this is the amount you don’t pay till you have inspected and are satisfied after the Contractor notifies you that the work is complete.

Zain Bhayani I agree with almost everyone here, I have been there and now I only hire licensed contractor for anything over 500$ which btw is also a law in California, and for a very good reason. I would say take the loss and cut the cord now, he will alway be ahead in payment or else won’t show up, in contrast, by law a licensed contractor can not collect more money than value delivered and you have a recourse to go after his bond or file a complaint.

Hello BPers! Weekend yay!! Just turned off my TV and wondering if anyone knows what software does the property brothers use (or something similar) to visualize how the property will look after renovation. I was watching the show tonight and the final product was strikingly close to what they planned. I would love to have that level of planing for my upcoming rehab (instead of sort of winging it with my previous projects). Thanks for reading and hope you make this a great weekend with your loved ones!