All Forum Posts by: Don Gouge

Specifically what are the electrical repairs for $4500? The 30 amp breaker problem can probably be fixed by replacing with a 20 amp breaker unless it overloads a 20 amp. In that case you just replace a few outlets on that circuit with a new circuit. Unless you are replacing all of the wiring someone is trying to get rich.

What is your standard criteria as to credit? Personally I would be fairly pleased with a 668 and an 800. I would be more concerned with evictions.

Start with the lender because none of this happens without money.

If the brother's wife was onthe note then she is responsible. If not, his estate is responsible. Unusual that he would have been able to obtain a loan without title to some land. Are you interested in owning the home?

Did you accompany the inspectors during the inspections? This is very important especially for a new investor. A good inspector will educate you on building systems and often tell you things he dosent want to put down on paper. A good inspector's job is to find as many flaws as possible in a home but also to them put them into proper context in relation to the situation 

You can find contractors to go along with this but you will have to pay dearly. You are looking at a model that is more suited to commercial construction where the contractor is bonded and he has his subcontractors working under a paid when paid agreement. In other words he dosent pay anyone until the owner pays him. There is also a retainage that is held from all payments until project end or even up to a year after. 

  Until I was actually involved in commercial construction. I never understood why things were so expensive. As a contractor you have to charge the owner a premium for the privilege of using your credit as well as the uncertainty of when and if you will get paid. I will gladly build your project and produce a bond and not ask for a penny until 100% completion but you will pay and pay mightily.  

If you are building a standard residential project, no one wants to jump thru your hoops when there is so much work available right now. I learned a long time ago that all money isnt the same.

This post reminds me of a situation like you see a baby laying on the train tracks. The train is barreling down the tracks at 50 mph. Bells ringing and whistles blasting. You are 200 yards away. Train is 100 yards away. All you can do is stare in slack jawed horror since you cannot help and disaster is certain. 

How much is the slope and is it an "even" slope?

Owen, I could write you a book but I will try to be brief. Your grandfather could be key here. You need to learn what a good job is and what a bad job is. Before I ever built a house I spent about two years just visiting houses under construction after hours and looking at things. Most work is done correctly but eventually after enough looking, you will start to see the bad work. Your grandfather can show you these things. Work as a helper for a jack of all trades small handyman. You will learn a tremendous amount about how to do things and how long it takes. Remember at this stage your focus needs to be just not on learning how to do the work and doing it but building your knowledge base. 

So much depends upon exactly what you want to do in construction. New construction? Remodeling? Commercial construction? Speciality trade? Initially your education should be tailored in one of these directions. 

 Being 18 is a double edged sword. The world is before you and your possibilities are limitless.  Distractions and obligations are minimal and you can concentrate on your career. The downside is being taken seriously at a young age. People don't want to entrust a young person with their home even if he is capable and knowledgable.  Old men like me have an advantage because our age justifiably or unjustifiably confers knowledge and capacity.You need to learn to manage men and clients. That is hard as a teen but you can learn some valuable lessons in other service businesses. Lawn mowing is a great example. Get you a truck and a mower and start mowing yards for people. Learn how to interact with homeowners and earn their trust. Expand and get another mower and hire guys to mow for you. Eventually you won't now yards but spend your time getting new business and managing the business of lawn mowing. You can do this now. People will entrust an 18 year old to mow their yard but not to reroof their house.

You can then begin to move into construction areas. Your mowers could become your winter construction crew when there are no yards to mow. Some lawn customers might let you do some home improvements.  Soon you will have a customer base for construction projects. Sell your lawn business for a profit!

I would base my valuation on making this a 3/2. I know you said that you wanted to avoid reconfiguring the upstairs but it sounds like it needs to be done. If you have to go ahead and sacrifice the 4th bedroom.