All Forum Posts by: Chris Purcell

Hey BP,

I'm relatively new as a real estate agent, but one of my main goals are to become a successful investor, focusing on building a portfolio of rental properties (hard to find cash-flowing properties in the Northern Virginia area btw, from what I've seen) 

As I haven't "made it" yet as an agent, it's crazy to see that the agents who are making good money, aren't investing themselves, with all the resources and tools they have at their disposal.  

Why is that? I feel like it's especially needed when you have a commission-based job

Well Chris a $50K job is a small one , But the deposit would be $ about $16,000.  Once I finished demo , I would collect a second deposit of $16K .   I wouldnt cash a check , I open a job account and deposit the check in the bank .  if I get hit by a bus ,the bus gets totaled since my alter ego is Super Contractor , man of concrete and steel ...........................   if I get hit by a bus and drop dead , the job will still be completed , ( delayed but completed )  my contract would be assigned to another licensed contractor , I have all this covered with my attorney . 

Something thats done quite a bit and the customer may not know is that contractors will sell or assign the job to a different contractor , the original contractor is still responsible , but all the work and subs are done by the second guy .  ( similar to wholesaling properties) 

@Kumar Tummalapalli  Deposits in Maryland  33% at contract signing , 33% when work starts ( that can be parerwork ) the final third can be in draws .   5 day right of recision , 10 day if the customer is over 70 , if I remember correctly ( they just changed it ) .

David , I cant answer questions about a property that doesnt exist , its pure speculation . 

Unscruplious customers ? Back when I was young , I would get the "while you are heres" .  While you are here can you fix this , do that etc . But they didnt want to pay . Thought I would do it for free .(Learned that lesson ) . Or when the wife comes in " Thats not the color I wanted in the living room "  And I show her the signed off paint codes she signed for each room . And then they dont want to pay because they dont "like" it .  The last one was a roof job 2 story colonial like 33 square tear off , customer wanted to supply materials , like a idiot I agreed and I wrote on the contract roof top delivery . I show up and there on the driveway was 33 square of shingles , and felt . His response was for 3 of us to carry them up . " Sorry chief , but you can climb that ladder over 100 times to get them up there , call me when you are done  " . 

Now 95% of the time everything works out fine .But In the begining  I learned some great lessons . I ALWAYS finished a job . But left money on the table .  Now its ALL in writing 

I finally learned to have a iron clad detailed contract .