All Forum Posts by: Ben McMahon

Ive done a lot of flips and JVs, but I wanted to get some feedback on others experience of structure in todays environment.  

I've got a designer who I have been doing work with, and she wants to do some high end house flipping.  In the past Ive done strait 50/50 partnerships with private investors, and also Preferred returns.  I am trying to figure out the best way to ad a 3rd party into the deal.

The designer and I are planning on putting together something for our potential capital partner.   What are terms that should make everyone happy?  

@Brent Wood

Yeah, I ran into this years ago after hurricane Florence.  My only thought is to seek out properties with minimal damage that can quickly settle the claim.  A good number of people want to be done with vacation homes in these areas after an event like this, and you might find them amicable to a deal.  

I spent time in the Carolinas after that hurricane doing restoration work.  The more affluent owners settled claims quickly and secured contractors to do the work even if they ended up coming out of pocket.  A lot of times it was an excuse to upgrade.  It gets harder the further away you get from the event.

At the beginning the insurance companies are eager to look good and stroke checks, but the longer time goes on, the less willing they are to please the owner.  Thats my experience anyway.  

Connect yourself to some of the adjusters in the area, and they can be really helpful since they will have first hand knowledge and experience with which insurers are being cooperative and which ones to steer clear of. They probably will also know which owners would be interested in making a deal.  

Im not the most experienced in this field, but there's a lot going on.  I'd say your best bet though is talking with the adjusters.  They will be all hanging out with the other trades getting a beer at midnight and their first meal of the day.  If there is any restaurant still upright.  DM if you want to talk more.

This is actually pretty interesting.  I wonder if there is a way to get in on the inside track for opportunities.  @Matt Devincenzo I'd be interested in what channel those projects come to you.  Is it the same person every time?  I have a friend that is working on the board for Catholic Charities here in San Diego, and he has asked me some construction related stuff on church property.  I just don't know who makes the decisions, or where to look.   

Not surprised most people say contractor.  Sure makes being a good GC valuable.  

Ive spent a lot of time thinking about why, rather than wish it wasn't so.  
What do Agents, lenders, Property managers, wholesalers etc all have in common ? They don't have to be there.  You cannot be a virtual contractor.  Probably some day in the future we will figure out how to replace contractors with technology, but not any time soon.  

Also, look at what a contractor is doing in a home, say a painter or finish carpenter.   There's a bit of art that goes into the trades.  And one person might not like the type of art the contractor makes. (side note, I think there are elements of standard, but even those are not always agreed upon by contractor and client)  Not so, if you are say a lender.  The rates are the rates, math is math, 30 years is 30 years etc.  Less subjective issues, less problems. 

Workforce pool - tends to be people that couldn't get a job doing anything else, so they end up in the trades rather than choose to be there. (not all) 

I think there are other things that make being a contractor tough, so its not surprising that more people are going to have a hard time with contractors over other professions.  So I am going to say finding good contractors like everyone else, but I think it makes sense that its that way.  

I am a GC, but also been and agent, and a PM.  

@Jose Antonio Flores

I'm not in Alabama, but you may want to consider looking for individual contractors that are trade specific.  If its a "light" rehab, its not really worth a General Contractors time, unless they are charging you a premium.  Which I am assuming you do not want.  

If you are doing multiple properties and can create a relationship with a GC, that might be appealing. Also, in the future you can do a JV with your GC. You could really create a good opportunity for yourself by getting his buy-in on the upside of your deal.

As being both a GC and an investor, that's my two cents.  Have fun!!!

I guess I might as well post on this thread since I am also looking at a self storage development deal.  I'm looking in a somewhat rural area, so class C.  But, its been growing steadily over the years and is on the outskirts of a major metro area.  

What are some of the things to look for in Rural self storage?

I talked to Betco about doing the buildings. Who is the best?  I am not looking for anything climate controlled at this point.  Will probably do it in phases depending on demand.  Starting with 20,000 

I have a site picked out near the intersection of two major highways.  I don't think its actually visible from the highway.  But very close.  Does that matter?  Can I just rent existing billboard space and have it work the same way?  I know that's added cost, but is it worthwhile, or just focus on digital marketing?

Best financing options???  Interestingly I have yet to talk to a hard money lender that does self storage.  

I have some experience managing storage, so I feel comfortable with that.  

Any other things to look for?  

If this is the thread to ask for a ticket, my friend wants to go.  So if there is anyone who knows how to get a ticket, please message me.

Awesome.  I might try and swing over.  I am coaching my son's Tball team, so hopefully its ok to show up a little late. 

Interesting.  I'll send you a message 

Bummer, looks like I missed this.  You got anymore coming up?  I'd love to meet up with a few people locally.  Plus it would be kinda nice to know a few people going to BPcon