Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Brendan Lawrence

Brendan Lawrence has started 17 posts and replied 30 times.

Post: Switching builders gracefully

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

I know that for myself as a contractor, if I was asked to take over somebody else's job I would have to cushion my bid, or place verbiage in the contract that allowed for easy change orders.  This isn't to try and get one over on you, but I'd have to protect myself against the tough transition points between the surprises that they hadn't finished yet, or did incorrectly (not saying due to shotty work, it just happens sometimes), or any other things that I'd then be placing myself responsible for as the new license holder on the permit.  

Your contractors can be quick to label you an unreasonable ******* when you push them.  I'll admit I've made similar mistakes along the way.  (Hindsight and humility can teach you a lot sometimes).  I think the best way to save yourself losses and get the place done is going to come from creative agreement stance which inspires them to place you at the front of their priorities.  

Actually, let me break that up.

If they're NOT on site working, and that's the reason for the delay, I'd think that its because they're not making the money the feel they should on that site.  In which case giving deadline bonuses could help push your job up their priority list, and it would be cheaper than hiring new.

If they ARE on site working and its still that far behind schedule, I just think you have probably the wrong person on the job and in that case I wouldn't want them around.

Post: Any New Construction Builders in Here?

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

Hey everyone!

I'm curious how many of you on here are building your own rentals.  I'm a GC, and I know MY basic rates (been at it for 18 years), but venturing out into the financials of an entire build start to finish are a new realm to me.  Don't get me wrong....I can build (and do build) entire houses start to finish.  But 70% of the work is being done in-house. Its great for me, but its also my biggest weakness.  Excavation, foundation, framing, exteriors, floors, kitchens/baths, drywall, roofing, trim outs.....I tend to be the one doing all of it.  I'll form close relationships with my customers and end up in hourly contracts.  Its very common for me to get hired for something early in the game and then I end up finishing the rest of the house.  Its set me up to be oblivious to the majority of the costs that other companies are charging.

I'm finishing up 2 houses right now (3 story start to finish builds) and I'm pursuing building for myself next.  I'll be involved with the build but I need to get realistic new build numbers going.  

If you've been building new rentals, have you experienced an average price per square foot to build? I'm leaning towards a duplex, about 1200sf each side with double car garages. Or, I'm not against SFH. I'd be curious to hear your thoughts on both options.

Anything is greatly appreciated.  Thanks everyone!

Brendan

Post: Rent rates outside Ithaca, NY? Anybody have experience?

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

Hey everyone!

I’m about to place an offer on a place in Cortland County, NY, about halfway to Ithaca. I’m having a hard time feeling confident in my numbers for rent.... some homes seem very cheap to rent currently while others are very expensive. This is a single family home on a humble plot, and I’m thinking $1/sq ft? Does anybody have any thoughts?

I’m trying not to waste the time of property managers since don’t know id be hiring any although I reached out to one, and never heard back.

Thank you!

Post: Every Contractor Is Treating Me As A Client And Not As Developer

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

@Johnny L.

Hey Johnny!

For what this is worth, from the contractors view, assuming I got a call from a person in your position:

Most experienced contractors probably already have a set of prices that they’re accustomed to charging for each task. Bidding and writing up jobs is exhausting and boring, and we like working with our hands, not fine tuning estimates (which we have to do, but hopefully as little as possible). But it’s a balance between trying to optimize profit, feeling fairly compensated, and making the home owners feel comfortable with what they’re spending.

At the end of the day I have my family to pay for, my own aspirations, and theirs, and our well being comes first. So a new person in my list of customers isn’t going to be sounding any alarms for me that I need to be treating them any different than the ones I’ve had for years now.

As contractors we spend a lot of time with you. We see you in the morning usually, again in the evening, and during all those inbetweens where a lot of general small talk will happen. Many people open up with time and this is great. But this also means that somebody sharing aspirations with us to bring us lots of work.... we’ve heard this before. Picture how often the “can I buy you a beer?” Line is used to pick someone up at the bar each night, and the lady has heard it a million times. That’s how contractors view the “I can bring you lots of work” pick up line.

That said, I think you get what you need with time. You probably won’t get an experienced contractor to lower anything for you on your first deal. Consider it cost of entry. But you call again for the second.... now you’re showing you’re real and will catch their attention. I would assume even at this point you could see lower prices start to happen. By the third, you should be solid. Keep in mind you may have to do this dance with each individual contractor you start a relationship with.

Here’s what I would try to work towards: after you have a solid understanding of prices, and your system gets more solid, Come up with your own pricing. If it’s fair, we love this. Itemize EVERYTHING. if you’re doing flooring, put price per square foot, include price per lineal foot of transition strip, demo, etc..... have contractors come in and estimate based on YOUR price out, or, simply say that this is what I’m paying for this job based off these rates, do we both agree I measured it out correctly, and that this is accurate?

We have contracts with large box stores and when you’re really busy this is a great way to grow our business. We make less, technically, per job. But the rates are fair, and I don’t have to bid anything! I can see the numbers on a page, skim it, say yup this seems right, and then put the job on the schedule. The ease of acquiring the job is worth the discount in payment.

It will make it easiest for both parties with time, and I guarantee you’ll keep contractors around with the ease it will bring.

Well the kids just woke up so time to run, but hopefully this helped!! Good luck!!

Post: To Tax or Not To Tax?

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

@David M. Thank you!  That sums up what I was wondering, and it all paints a pretty clear picture.

I'm brrrr'ing, so my biggest concern has always been what I'm going to do come the completion of the remodel, and I start having to pull off the refinance portion.  I claimed decent income the last 2 years but I'd like to be able to go back to writing everything off, but I've been hesitant to take that approach if it's going to mean I just threw out my chance to refinance.  

It sounds like in a nutshell I shouldn't worry TOO much about it.  That before April 2020 there were lenders who would work with people in my shoes, and that there's a possibility that it could back and available currently.  Also it sounds like the seasoning period of the Brrrr could be the tool needed in these cases that grants me a long term mortgage should the numbers work to meet their requirements, helping to offset a potential "low" recorded net income.

Did I take that in correct?

Post: To Tax or Not To Tax?

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

Tis the season for taxes! And here I sit wondering how the heck to go from here....

I’m a self employed contractor with MANY areas that I can deduct in come tax season. Obviously I want to get this income number as close to zero as possible. But then again, I probably won’t qualify for a mortgage if I do, correct?

This all makes sense to me, however if one of the main benefits of owning rentals is to save on taxes, then how does this balance out? If the millionaires of the world claim to pay little to no tax, how do they get loans? If i write off anything and everything and say I “netted” $15k, but let’s say I actually made $100k, how do folks transition from this area of needing long term mortgages yet not kill themselves with taxes along the way?

Do I have to claim to be a high income earner until my ten mortgages have been acquired and then I have enough assets to borrow against that my income won’t matter as much?

Any wisdom is appreciated! Thank you!

Post: What’s your opinion of self-righteous investors?

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

@Shiloh Lundahl haha literally just had this issue the other day. They come in and say your strategy is going to fail but offer no reasoning or explanation why. Sounds wise on paper....

Post: MEMPHIS MEMPHIS MEMPHIS

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

Nathan thank you for that!  And I'm going to download that book right now and give it a listen that's great advice!

And Jay thanks for you input as well, can you elaborate for me?  Have you had experience or seen others do this?  

Post: MEMPHIS MEMPHIS MEMPHIS

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

hey guys!

I read the great book, "Who Not How", recently, and in respect to the wisdom of the book I'm landing right here to ask this question!

Memphis, TN, seems very appealing for a remote rental investment territory.  I've noticed MANY neighborhoods where houses can be bought sub-$20k. But, a quick drive down the google street view and it looks like everybody is either working from the sidewalk or inspecting the patios for signs of rot.  Obviously this turns around any thoughts of considering these regions, but I do notice that there are a handful of zones where you can spend maybe around $40k or $50k and the next street over is starting to find 6 digit homes being listed.

My question here is what would you say the best neighborhoods are, for a BRRRR investor? I have about $10-15k to put down on a property of my own, and another $10k from a partner. I'll be holding mine as a rental but flipping the house with the partner for an equity split. It doesn't have to be IN Memphis either, mostly just commuting distance.

Do any of you guys/gals have property management and/or realtors that you recommend?  I'll absolutely give them a call and if you like I can drop your name as well as the reference.  

Thank you for any info and hope your 2021's are off to a good start!


Post: Ethics and Legality of Tax Payment Purchasing

Brendan LawrencePosted
  • Rental Property Investor
  • Bend, OR
  • Posts 33
  • Votes 18

Awesome.  Thanks everyone!  Exactly what I needed to understand.