All Forum Posts by: Colleen F.

Aside from get recommendations. If you don't have that Do they return calls? do they show up? Do they do the kind of job you have? For example ask what kind of roofs do you do? Ask to see their work. Is the scope of work about what you are doing. Do them seem to like what they are doing and explain it if needed. are they busy- now this can go either way but if they are in business for a while I would expect they have other jobs and I might need to get fit in to their schedule. Whenever you have multiple contractors look at a job look at the differences in their proposals this can tell you what they value and what they know.

Have you thought about a contract that lays out the long term arrangements ? What I thought when I saw your arrangement was you are doing work upfront for money on a regular basis and down the road. The maintenance may not be a big thing because it sounds like you are looking to help them out and you would be compensated monthly so I would expect the routine activities would be covered. For this something like a property manager agreement would work.

But the big jobs like a roof. If the deal terminates right after you complete a major activity like that where you have put a lot of hours in how will that work? You may need to structure it in a more complicated way that specifies a minimum amount you will be compensated for these major jobs. If you do the roof you are entitled to x months of this management fee. Also you need to consider what if someone decides to not rent the apartment? what happens to your compensation? If you do this it needs to be carefully thought out.

You can write the license cost off as an expense but your rental income is still "passive" in almost all cases if you have a non-real estate day job. I wish the paper work reduction act would be real and they would move to post -card taxes-- the complexities are just mind boggling..

Definitely look at that link. It looks like the perfect fix and frankly less expensive then some of the other proposals. The mini set back dormer on the garage helps too. The difference in the brick vs siding on your house could be made more appealing through good use of a darker color with white trim. I don't think a brick dormer looks "real" but that may be just me.

A comment on roofs, if you can get a couple estimates you are lucky. We are replacing a big roof on a 5 unit as we speak and it took all summer to get 2 estimates. Only asphalt shingle - I had 3 roofers show and never send an estimate.... Granted I am not sure if the steep pitch, angles, and trim work got them but when you describe the job you think they would say something..

First, I am sure you will get lots of good advice here. Since you are asking about financing I am assuming you ran the numbers and have a good idea on expenses and cash flow. That is how your commercial lender is going to evaluate the financing. I would speak with a few local banks who may be more likely to consider the loan. A mortgage broker will charge a fee of 1-1.5% avoid that if you can although you can also talk to them about possibilities which is free. If you have been looking at commercial properties for a while you should also be talking with lenders so that you can present any offer with a pre-approval. (this might be tougher with not much credit history). A 5 family will require commercial lending whereas a 4 family or less would not and would be based on your personal credit.

I am hoping some others will chime in. We did a recent similar purchase but have a long credit history which factored in. They wanted 25% down standard and some expense reserves. I have seen some posters out there who started at your age and could have some insight as to where best to go in your situation.

How long is your contract with her for? Before taking a financial hit like you are talking about consider a few things.

Has anyone been in the door? If the answer is no you need someone to tell you why. If this relator is part of an agency is there someone more senior then them at the agency you might consider seeking help there? It is their reputation maybe they can advise on how to re-write your listing in a more appealing way or where else to market the property. If another agent agrees that the price is correct and can offer suggestions on why it is not selling consider taking them.

You said you need an as-is cash buyer. Why? If it is over a 1200.00 plumbing fix it might be worth doing that fix maybe you get a couple quotes and you can bring the price of that plumbing fix down and do it-If it is more reasonable then the cost of that bridge loan. If you remove that cash buyer from the equation then you might have a bigger market.

A word about comps. Sometimes the price and speed of sale for your house has to do with specifics not size. A style consistent with the area sells quicker. Otherwise it just take longer to find the right buyer. This could be true for any number of reasons for your house. Think about it. Don't have a fire sale if this is true. Also consider the time of year could be an issue.

I urge you before you do anything to seriously evaluate why the house has not sold. Don't dig a financial hole for yourself using a bridge loan unless it really is only going to be a bridge. Consider other options.

@Bill Ham For some of the items above we got free estimates pre-closing without promising the work to them so it is not necessary to promise the work. I would encourage you to always look for multiple estimates on big ticket items since even people you work with repeatedly have some price drift if they know you won't get competitive bids. There were big differences on our roof and electrical work between contractors

@Yong Yoo it may be too late for this deal, to get great estimates for the repairs (you could ask for an extension but I would guess they won't give it. Run the numbers with the repairs before going to the table asking for a credit so you know your walk away number.

How about sending a letter to the upper units. Include some pictures of your plastic tenting for the leak and request that they kindly allow the HOA to access their units so that you can remedy this significant hardship on the occupant of (insert your unit Number). Suggest that this is a health and safety issue that could impact them. Even suggesting mold makes people nuts these days.

Aside from the rent abatement I would suggest updates when you get them, kind followup calls and a hiring a post fix cleaning person to freshen the bathroom after the final repair.

If I was the person loaning you money (family or not) I would request it be a recorded mortgage on the property and for everyone's protection get it in writing. Family members get sick or sometimes die or even get married and there will be questions about what was the agreement, what are the terms, how are you computing the interest and what is still owed. You can get a private mortgage legally recorded. It also addresses the question of what is a gift and what is a loan. There is also a tax advantage of the interest statement on the property which would need to be issued by the lending party each year creating the documentation on the loan.