All Forum Posts by: Victor Olowu

I am currently working on turning around a commercial construction specialty/trade contractor business in Austin TX.  Business got crushed by COVID in 2020 and 2021 due to projects being postponed/cancelled, equipment delivery delays, etc.  I've been able to grow it's revenue 67% last year and on pace to exceed 30% revenue growth this year, and be profitable again for the first time in 3 years.  My main change has been getting the business qualified to work directly for large general contractors instead of working with their subcontractors.  I have also prioritized getting the business selected as a preferred HUB vendor by public agencies like City of Austin, UT, Austin ISD etc. so that we win more bond program construction projects, since those have committed capital from federal and state dollars and not as likely to be paused if the economy slows down.  The business now has a large backlog of won projects for 2023 and beyond, but short on cash.

If anyone has gone down this road before, especially on the commercial construction side, please share your insights either here or message me.  I am also looking for equity injection to reach our expansion goals while turning the business around, if any investors like this space.  

@Greg Dickerson I'm targeting condo, high-rise, and other commercial (restaurants, banks, warehouse) building owners, and it's a cost reduction service.

What is the best place to catch building owner eyeballs in the new post-COVID world?  If you had a product/service targeted at commercial building owners, where would you market it? 

Yes there are forbearance programs, but I still expect home prices to fall significantly in the next 3 to 6 months as the unemployment spike starts showing up as increased supply in the residential market.  Even if the government outlaws foreclosures, you still have A LOT of new construction coming online with a very large drop in new purchases. 

If we focus on job losses alone: savings will be depleted, i.e. no down payments, and it will take a while to rebuild savings accounts.  Also, job history, which is a major criteria for bank loans will now have a lot of applicants that have only been employed for a couple of months, which all banks will not be comfortable with.  Just as importantly, there will be a general decline in consumer confidence and spending for regular purchases, let alone 15 or 30 year mortgages.

@Joseph Graeve I might have an agent for you in that area.  DM your info you want me to pass along to the agent.

A tenant that came with the building I just bought a year ago will be moving out in a few days, but there is no real way to figure out how much of the damage (non-normal wear and tear) on the unit is caused by the tenant since I don't know the unit's state when they moved in.  These are things I don't believe the old landlord would have left unattended before renting the unit out to her, like cracked/loose countertops and broken closet doors.  I did a walkthrough of the units in the building before and after closing on the property, and most of the damages were there then as well, but she's been there 3 years now.

Knowing that Chicago is very tenant-friendly, especially when it comes to security deposits, makes me want to just give her back her entire deposit and cut my losses, or is there any other way to sort this out.

Thanks for the insights, @Mark Ainley and @Victor N.

I understand the split between what the voucher program will pay and what the tenant is responsible for because I have a couple already, but they came with the building when I bought it.  This is the first time I would be placing one myself.  The plan is to screen them like I would any other tenant that wants to live in my building.

@Account Closed To clarify why I am asking about charging more: I am not a fulltime landlord, I have a fulltime job and do this when I am not working.  The inspector I got for the one Section 8 inspection I've had so far was very nit-picky on a lot of things that no tenants care about, which then means I have to take time away from my fulltime job to address these issues.  So I basically look at it like I have a product that I am selling to everyone, but then one person(voucher users) wants a customized version of that product, which is why I don't see why the extra effort needed can not be reflected in your rent price.

Am I allowed to charge more for an apartment if the tenant is a voucher user versus regular tenants?  There is more work involved and a number of additional things you have to do to maintain a voucher tenant including additional inspections.  Can I charge more rent for this extra work, or would that be considered some kind of discrimination?  This is in the Chicago market, if it makes a difference. 

Good work on the buildings! I like your model of partnering with contractors.  Also, congratulations on the wedding.  Let me know when you're back in town.

@Matt Rothwell @Carmen Harris

Thanks, I'll look in Durham as well before I decide.  Coming from Chicago, I think my idea of expensive will be very different than Chapel Hill expensive though.  So I'll definitely dig into both Chapel Hill and Durham.