All Forum Posts by: Chris Merchant

Generally it is on a case by case basis but I would NEVER pay for more than just the materials up front.  Larger contractors will usually have the funds on hand to foot the cost for materials.  It basically comes down to whatever you and the contractor negotiate in the bid/contract.  

Where I work (doing landscaping and excavation) we only require money up front if the client wants something that requires a special order product.

Connecticut.  Around here generally the biggest time delay is getting the inspection phases scheduled and coordinated with all contractors (if separate ones are involved) especially in the smaller non metro areas as most of our building officials are part time so they typically only work 2-3 days per week and sometimes in the evenings.  Again one of the reasons it is vital to stay on their good side, they will be sure to put you to the top of their schedule.

We are in a business where one hand washes the other.

A few things , first off always pull the permits.  The cost now saves you much more down the road.  If yo aren't sure if you need a permit for the work being done, just call the local building office and ask, they are generally helpful and nice to people trying to do the right thing.

Second try not to upset the building/zoning officials as they can make your life extremely rough in future endeavors, and another point to that they can also be some of your best team members when locating future properties.  If they know you're legit they are dealing with houses all the time all day every day they typically know the back story of many local houses and can be instrumental at finding you potential leads and also if you really get a good relationship with you they can give you loads of advice and tips.  My mentor has a team member that is a building inspector for a town he invests in and he has taken him with him (off the record) on first visits when he does his initial walkthrough to give him an idea of what will need to be upgraded, what better way to figure rehab costs if you know from the get go what has to be done.

Third, realize that as much as EVERYONE hates the inspectors they're just doing their jobs.  Part of their job (especially if you're not doing the work yourself) is to make sure the contractors are doing an adequate and proper job and not cutting corners or taking advantage of an absent or unsavvy owner.

Also know that sometimes if they find out you have completed work that requires a permit without obtaining one they can make you go back and show the work in the various stages they would have inspected it which means basically redoing the work all over again at 100% out of pocket cost to you, plus they will make you pay the permit fee and most likely will hit you with some fairly hefty fines.  Example: if you decided to redo the entire interior of the house and its all completed and they find out you did so without the proper permits because they see the contractors leaving the job site after you just handed them their payment, you may get a knock at the door and well because after rough framing (before drywall is installed) they would normally inspect the plumbing and electrical you had all redone, guess what you will have to remove all the drywall so the can look at what they want to see.  

It is always just easier to do the job right the first time part of the job is pulling the proper permits.

@Joe A. and @Bruce Woodruff I don't know about all areas but where I am the permit must be displayed and viewable from the exterior of the house without obstruction at all times while the property is under construction (most people place them in a front window of the building).

@John Morgan Agreed, as stated I still do the typical background check as I do want to know who is occupying my property but most of these people strive to be better than their past and just want to do the right thing.  I currently have 3 with various criminal backgrounds and 2 of them said they were actually surprised when they were offered my units because they'd been turned down by so many others.  The other is not the main person on the lease he is living with his parents trying to get himself back on his feet, and I actually hired him to upkeep and maintain the property (a duplex) as far as grounds maintenance until he can get himself back on his feet.  But none the less all 3 are mostly just thankful for the opportunities I've elected to give them.

 Yeah generally the contractor will go over different types of shingles with you and aside from color and appearance the biggest difference is the years 20 year, 25 year, 30 year etc...

I have never personally gotten a roof replaced through insurance so I don't know if the insurance dictates what "quality" of shingle they will pay for.  If so you can generally elect to upgrade and just pay the difference out of pocket (I'd assume) similar to auto insurance claims and/or rental cars.  I received a rental car through my insurance they obviously only covered up to a certain amount per day, however I wanted something bigger than a shoe box so I elected to pay the extra $ per day to upgrade to an SUV.  The only time I could see the insurance getting upset is if you or the contractor put a cheaper 10 year shingle up when they paid you for a 25 year shingle, again I do not know what type of shingles they typically use in their adjustments.

As for #1 & 4: If you have a local handyman you generally use, ask him to go and be your eyes and liaison between you and the roofer, even if you need to pay the handyman for his time of doing this (I wouldn't expect him to do it for free).  But he will most likely have some basic knowledge and if you tell him what shingles you want he can verify that they correct ones are used or better yet have the handyman pick up and deliver the or at least order the shingles to be used.  Make it clear to the roofer that payment will not be made until you know that the work has been completed and acceptable, I know that some insurance jobs I have worked on in the past the insurance company would release payment in phases to us as we completed work to be done.  That generally helps the contractor do the work that is supposed to be done.

As for #2:  You may want to check with the adjuster to see if gutters were a part of the claim.  Sometimes if when they inspect the damage they will write gutters into the claim on their own, or the contractor if he/she met the adjuster or submitted an estimate they may have already put gutters on the estimate.  You can't ever expect any sort of kickback if and when they happen consider it a bonus.

Is the insurance company issuing the check to you or directly to the contractor?  If they are issuing it to you it gives you a bit more control over the project because you hold the funds, and as stated earlier if you have the insurance check you can order or have your handyman order the shingles and get them delivered to the job site and than you just pay that out of the check from the insurance.  Some contractors do not like this but you do have the right to do it as long as you be sure to order the correct amount of shingles (I'd even order a little extra).

Another option is if you trust the tenant you can ask them to please notify you when the contractor has finished the job so you know they are no longer on the property.  Sell it to them that you need to know for liability reasons when the contractor is finished and vacated the property.

One important thing to be sure the contractor does is cleans up any debris including but not limited to used nails.  Last thing you want is for your tenant or one of their children to be out in the yard and step on a used old rusty nail.  During roof replacement nails fly around and land everywhere around the house, responsible roofing contractors will ensure usually by using a large magnet that all nails and metal debris is cleaned up, so you could ask if they use magnets to remove any nails or other metal from the property at the completion of the job.
 

 Yes!  I forgot the satellite on the roof part.  I do not allow satellites to ever be fastened to any part of the building, I tell the tenant if you want satellite that is fine but you must put the unit on it's own post.

That was my initial thought too, but you'd have to do some number crunching to see if rent could cover the mortgage.  But it seems selling may be the best option unless you want to deal with it across the globe, maybe try contacting a local PM company and see what they feel it could rent for and what their fee would be and then see if the math works for you.  If you list for 650k it may end up in a bidding war, how long do you have to decide?

How hard or easy is to get zoning approval for a new assisted living or senior housing project?  I've heard horror stories that it's usually impossible due to the "burden placed on the municipality" but could really never understand what that burden was... most people living in those units wouldn't be using the school systems so aside from maybe an increased volume in emergency medical situations I can not understand that statement?  Anyone have knowledge of this?

If you decide to keep them I would be sure to seek legal advice so there can be a section of the lease that outlines that they acknowledge the cameras exist and what exactly their used for and who has access to the content.  Be sure to have the tenant sign or initial the section of the lease so they can't down the road raise a stink and say they were never made aware of the cameras and accuse you of "spying" on them or whatever.