All Forum Posts by: Ben McMahon

I know of a very good finish carpenter. Pm me if you want his info. He's done some work for me.

Welcome Scott. I'm right down the street. Best advice I can give is to do your first deal. So many people want to do this business, but most people never do because they don't act. Feel free to reach if your really ready to take action.

I agree with @J Scott and @Michael P.

However, I do know what its like when your the GC and your sub comes in with a change order.  Of course he is going to kick that cost to the owner.  It might be worth talking to his electrical sub and seeing just how much more his bill cost, and why.  Sometimes unforeseen things happen, and there has to be some flexibility in your budget for that.  I would dig a little.  Maybe the electrician is part of the problem, and it could be solved with a simple phone call.  

I will say that my personal opinion is this is a very typical contractor, and its a classic scenario.  Contractors are always late, and always cost more than they are supposed to.  That is going to happen again, I can guarantee it.  1900 bucks isn't worth going to court over in my opinion, so I would probably just make his life difficult until he drops it.  One letter from a lawyer scares the heck out of these guys.  

Where in Upstate?  Hopefully not my hometown of Gotham City..... I mean Binghamton

Sounds good, if I don't answer shoot me a text and I will call you back.  Thanks

I guess it wasn't really that silly of a question.  Given that it does seem to mean different things for different people.  

@Jerry W.

Interesting angle.  That property is also in the flood plane, which is part of the cashflow issue.  It also has the least amount of equity.  Which is kind of annoying.

@George Taylor

All the properties are leveraged to different degrees.  Which obviously plays a role in the decision making process.  1 and 2 are wrapped up together, and 3 and 4 are wrapped together.  There is more equity in 3 and 4.  Maybe 50% give or take

So I am having a cashflow issue right now, and Im not sure what to do about it.  Without getting into the nitty gritty of why I need the money, I am planning on selling one or more properties.  I really don't want to sell anything because I worked hard to get these properties, and over the last few years I have only kept the ones that are solid.  It seems like a step backwards to sell anything because my longterm plan was to grow a large portfolio of properties.  

I have a lot of money tied up in some other projects, and I don't know when those are going to pan out.  I owe money to some people, some people owe me money, but its been tough lately.  So, the question.

Which property should I sell?  There are a few that are tied up with other investors, so they are off limits, but the ones that I plan on possibly selling are 4 different ones

1) Hot Corner - Single family that we renovated a few years ago in an almost exclusively commercially zoned area.  I can rezone and make into an office without many upgrades.  Its at an extremely busy intersection and can be used as small office or flex space.  Problem is that it would take months

2)Picket Fence - Perfect little 3 bedroom in quiet area.  Really good rental, and have had a solid tenant for a couple years.  Not amazing cashflow, has been almost maintenance free

3) Double up Duplex - Bought this sucker at the bottom of the market, and is worth twice what I paid for it.  Its got tons of upside because the whole area is currently getting new roads and a new bridge etc.  The place itself has good cashflow, but its an old building.  

4) First time Townhome - My first investment property I bought in 2010 and like the others has been a great property.  Its worth more than double what I bought it for, and I've always had good tenants.  It also has some sentimental value, although I am pretty good just looking at what makes sense.  

I realize there are a ton of variables here, but I have to do something.  So which one?

Great Duplex for new or experienced investor.  Have owned it for about 4 or 5 years and has always been easy to rent.  Currently fully occupied, and is in an awesome area.  Right next to elementary school, and 2 minutes from I66.  Ideal for commuters, and is getting a new sidewalk and driveway.  

The whole area is under construction, but the place has a ton of upside. Perfect for investors in MD, DC, or VA. I am selling because I need some money, but its truly a great property. I renovated both apartments in the last two years, did a few roof repairs and a few other preventive maintenance items. Its an older property, but has very few issues. I will probably put in on the market soon if I don't get anything from BP. I just don't feel like going through the listing and loan process.

The rents could easily go up in both units to 750 each.

Whose attorney drew up the agreement? I partnered with attorney once on a JV and got screwed. Bottom line is that you need to protect your asss....et. I am not the best at legal, but my answer would be that you probably aren't protected by the agreement.

If you have an LLC, why don't you buy the property jointly? You are correct, that the second mortgage protects your original investment, but unless you have a lien or direct ownership, than my guess would be that the language in your contract has a loophole. They all do.

I am assuming its tax reasons that you aren't taking ownership.  

All that negativity aside, if your initial investment is protected, I would still go for it.  Your risk is pretty limited.