All Forum Posts by: Daniel Raposo

Hey @Crystal Perez

CT has some great markets for investors. Fairfield County towns like Stamford and Norwalk will have more multi-family opportunities than some of the smaller towns around here, but while they'll be more expensive than other areas of CT they're still cheaper than buying in NYC or the boroughs. If you're willing to go a little more than an hour then you could look into areas like New London, Hartford, and New Haven. You'll get a lot more for your money there and have better cash flow potential. 

You've got a lot of research ahead of you, but it will be worth it once you get that first deal!

Good luck!

Hey @Douglas Cyr

It's great to see another new member from Connecticut! There is a ton of information on here, if you haven't already check out the blogs and podcast too! There are also a lot of great local networking events, some coming up next week actually!

There is the BP Meetup next Wednesday at 7pm at Anna Liffeys in Fairfield, and Charlie's Corner which is a weekly breakfast meetup at Valencia in Norwalk every Thursday mornings at 7. There is also the CT REIA which typically meets in Meriden and they put on a few events every month.

Welcome to BP!

Good luck!

Welcome to BP @Natasha Streitz

It's great to see another new member from the Fairfield County area! There is a ton of information on here, if you haven't already check out the blogs and podcast. There are also a lot of great local networking events, some coming up next week actually! 

There is the BP Meetup next Wednesday at 7pm at Anna Liffeys in Fairfield, and Charlie's Corner which is a weekly breakfast meetup at Valencia in Norwalk every Thursday mornings at 7. 

Good luck!

Dan

Thanks @Account Closed

Hi Everyone,

It seems the thread kind of strayed from the original post a bit. To speak a bit more to that, like most of the others have said, what you can do will really be based on the contract you have with the contractor and whether or not he followed the contract with his extras. There really aren't any laws that would give you rights outside of that, unless the contract you signed wasn't valid for some reason. For instance in CT, a contract has to have very specific things in it in order to valid, like a start date, estimated completion date, fixed price or rates or markup if its time and material based, rights of and process for cancellation, address for notifications, etc. My guess is you may not have much to go on here and even if you do it probably wouldn't be worth pursuing since that process could tie up your property until its settled which would probably end up costing you more than the amount you owe him. 

Moving forward I would suggest you create a detailed scope of work with your contractor, along with a fixed price, specific process for discussing and approving changes to the scope, and process for payments, timelines, etc. Good luck!

@Cj Juan I think trying to inform your clients of the potential extra costs is fine, but I think it would probably be better in the long run for you to be more specific with your costs and keep the unconfirmed extras as more of a discussion in the beginning, and then be specific as to the costs of them as they arrive by addressing them as a fixed price change order. I also find it interesting you take a 40% deposit and then balance upon completion. That seems a bit heavy on the front end, especially if the client is paying for or buying the materials, and leaves you pretty exposed on the back end if they decide they're not happy with your work or final price... The types of schedules and contracts that @J Scott and others have mentioned have become industry standards for a reason. They protect both the client and the contractor and set expectations for both in pretty clear terms. As you grow your business you may find it easier to get work by operating in a more familiar way. But its your business. Good luck!

Sounds like a cool project for your first! Keep up the good work.

Wow, @Robert Skulka Investing with no money is possible anywhere, but most likely going to be in the form of partnering with people that have money. This isn't always the easiest thing to do because without money you need to bring value to the partnership some other way. This could be by finding a great deal, having experience in construction or design or property management, or something along those lines. I have invested in multiple deals right here in expensive Connecticut with no money out of my own pocket. You just need to know how to bring something else to the table. 

Hi @Kenson Castor

Is the $10,450 commission your commission on top of the purchase price? If so, that would bring the total purchase price to about the same price as it is currently being listed for on the MLS????

Do you have this property under contract? If not, why are you marketing a property that is listed by another agent on the MLS?

@Craig Hansen

Not sure if I'm supposed to do this, but here is a link to the listing agent's site and property information if you want to learn more.

http://www.bhhsneproperties.com/ct/hamden-real-estate/houses/5-murlyn-rd-06518-5483407

I've seen a lot of Guru's and other programs pushing the whole out of state incorporation for tax and liability protection, but I have never really understood the benefits of it to be honest. 

No matter where you incorporate you still have to be registered in CT if you're doing business here. If you're flipping a house and someone gets hurt on your property and sues you, they're going to be suing you in CT, so CT laws would apply not whatever state you're incorporated in so friendlier laws there wouldn't make a difference. If you meet the requirements of piercing the corporate veil in CT then guess what they're going to come after you personally even if you're incorporated in another state. Am I wrong about this?

If you're doing business in CT you still have to file a CT tax return for business activities in CT, so even if the state you're incorporated in has better tax rates, you're still paying the way worse CT tax rates for all the business you're doing here. Am I wrong about this?

If I'm not wrong about the two above situations why would you want to incorporate somewhere else and pay for all the additional setup fees and filing fees.

If I am wrong about the above situations I would love to hear from an attorney or CPA about why I am wrong and how it would really work, because this is something I've heard mixed reports about for years...

Hey @Jay Hinrichs

In CT, you can file a signed contract in the land records so it will be on title but I don't really know anyone that does this. 

@Jerryll Noorden Congrats on taking MASSIVE ACTION!

I actually live in Norwalk, right next door to you and grew up in Wilton. We should get together this week. I have some people you can talk to and I can help you out with comps and paperwork and such.

@Everyone else. Very few people in our area use direct mail for this type of investing activity. Most homeowners get lots of postcards and mailers from real estate agents trying to list properties, but few get appeals to purchase properties, etc. I am mailing out about 700 mailers a week right now and typically get 10-20 calls a week. Most of them are just curious or upset about the mailers and telling me where I can shove it. Last year I did about 10,000 mailers spread out over 6 months and only got two deals. So this year I am both increasing my geographic area and number of mailers. While I am an agent I don't have time to really by listing properties, so I have also created a team of agents within my office that I can refer listings to for cut. Hopefully this will all help with the success rate.