All Forum Posts by: Chris Harkins

@Kevin C. The buy and hold isn't a likely option.

A wholesale or a flip on your part might make sense, depending on what the actual cost of the repairs might be. Do you have numbers on the repair cost?

@Adam, When I got started I took the roommates from the place that I was living in and moved them into the house I bought.. Make them a deal like their first month/ or prorated month will be free "because of the inconvenience of having to move" and I think you'll find they will be on board with it, especially if you already have a good relationship with them.. 

The cool part about that deal is, typically when you get a loan for the house.. you don't have a payment for 45-60 days after you close (other than your down payment), so you really didn't lose anything by offering it to them, and now you have tenants you know you can live with as well.. Quick Cash flow!

@Ryan Dossey .. How many units? You may need to comply with Fair Housing Rules if it is several.

@Kristina Modares,

The worst thing that can happen is they say "No, they aren't interested in selling."  You will probably run into a few disgruntled people if they are targeted as heavily as you say that they are, but remember you're only looking for that 1 deal. 

In the grand scheme of things, if they don't bite, they wont remember you the next day anyways. So don't take it personal.

If I were to do it, I would try the door to door approach, simply for the fact of being able to gauge the neighborhood and putting a face with the name. While you will stumble on houses that aren't interested in selling, neighbors talk, and they may know of someone a few houses down who is contemplating it.

@Raymond B. 

Thank you!

@Scott Trench  I wouldn't change the name on the deed because of the due on sale clause. .. But would grab an umbrella policy and require your roommates to get renter's insurance. You'll also need to let your insurance company know that you have roommates that way in case one of them say causes a fire in your kitchen, they can't deny the claim because they weren't aware of other people living there.

Chat with your insurance agent and attorney to make sure you have all your bases covered.

@Lynn Dee Murrow 

As an investor and GC I understand both parties frustrations.. one having dealt with horrible contractors on my own properties and then having at one time good contractors, botch a job that they were subbed out for. 

So while it isn't ideal.. Lynn, you need to make it right, even if it cost you 5k because in the long run, it will cost you way more in lost business by not fixing it. Not only that, but you've got the opportunity to turn a bad situation into a win all the way around. But it won't be a win, if you let the fire keep burning too much longer.

I agree with Mark, that the only way to completely avoid this is supervision, which is NOT ideal at all. But is the ONLY way to stop it from becoming a problem, where you can address quality control issues immediately and terminate if necessary, sooner rather than later.

So you have 2 sides of the coin here as a contractor- Either large volume of work where not everything can be 100% supervised or small batches of work with a higher rate of supervision.  It is the GC's job to patrol this.. If you choose the first option, large volume, you're going to have to budget for mistakes, and Make them right.. because lets be honest, -**** happens. It's a cost of doing business. But FIX IT and REMOVE the SUB.

Donald, sorry to hear about the issues, I hope they step up to the plate and do what is right. 

I have found here in the Memphis area that a lot of times with lower priced properties that are more often bought by investors, especially stuff that is dished out by Fannie & Freddie (pre-online submittal) there are certain agents that would take the offer in from another agent, but never show it to the client.  They tend to have their own list of investors they shop these properties out to directly, allowing them to make a double commission if one of their investors picks it up, instead of a split commission with another agent.

I know this because I submit my own offers being a broker on stuff I was interested in.. A few years ago, I was trying to pick up a couple cheap properties to rehab and hold, but after I wrote the offer and sent it over to the other agent, I wouldn't hear back from the other agent or asset manager, while the property would sit on the listings for 90 days, a price drop, etc.  and then would just get the run around any time I tried to follow up with them.

With Fannie and Freddie now, there are online submitting tools so you can request a print out from your agent showing that it has been processed in the system essentially bypassing the other agent and getting the offer straight to the asset manager.

However, other than that.. there really isn't a way to verify other than just seeing if you can get the agent to screen shot you proof that the offer was sent over via email.  If you feel like there is any thing funny or unethical going on, REPORT IT to the local real estate board they are with so they can investigate it.  Agents are REQUIRED to submit all offers to the owners. 

Hope that helps!

@Carson Sweezy, I haven't run into an issue yet with having my license nor have I heard about anyone else. The key seems to be disclosure and CYA documents. 

I do like the fact of being able to write your own offers and get into houses on the MLS without having to constantly bombard someone else with phones calls and follow up emails if they've sent your offer in. In my experience it has been nothing but a plus so far. If you are only doing one deal now and then.. the licensing fees may not be worth it, but if you are buying several and doing multiple deals I would definitely recommend it. The costs of having your license don't stop at just completing the course, there are plenty of on going fees to factor in too.

Hope that helps!

Brutal.. Sorry to hear about that. Have you tried writing up and addendum prior that specifies how remaining work will be priced? Or even a guarantee along the lines of having them match a major competitors bid for work after the fact to prevent them from gouging you?