All Forum Posts by: Doug W.

Feel free to shoot me a message Danielle Palleschi-Browne if you have any flip specific questions in Alexandria. Given your tight time frame are you worried about losing out on the property? Even if you could get conventional financing it would take several days to compile and submit an application package before a lender's underwriters could review it and get you approved.

I don't understand the question. Who would the property be owned by in the question?

Hi Danielle Palleschi-Browne and welcome to Alexandria. Have you considered a private money lender who will do a lease-to-own loan? You will likely still need to get a regular mortgage at some point to pay back the original loan. If you have any questions about rehabbing in Alexandria please do not hesitate to reach out to me.

What's his rationale for filing a lien @Dan Krupa ? Just to piss you off? Is he demanding more money?

MLS it. Get the most you can for it in the simplest and fastest way.

$35/sf for the cheap stuff that looks exactly that...cheap. Prices go up from there. $55/sf should get you a really nice selection. 

I would worry less about "is this the right time" and more about "do the numbers make sense"? Estimate the repair costs after you see it and post that number here for feedback.

When you run your numbers don't forget closing costs (on both the purchase and the sale), the financing costs, and other holding costs (insurance, utilities, etc.).

Best of luck to you. 

I have done numerous different scenarios. 

With the guys I have known for a long time -- especially the guys who I now would consider friends -- I will pay them 25%-50% up front without any hesitation.

For new contractors and subs I prefer to not pay more than 25% up front. When their work is dependent on city/county inspections I ask that draws are contingent on passing inspections. 

It's really all over the place though. For a $130,000 rehab the GC asked for $13k up front. I did a new build that cost $650,000 (not including land) and the GC only asked for $8k up front. 

Ultimately you need to be comfortable paying the contractor(s) and you need to also be cognizant of his/her situation. Come up with an agreement that you both are comfortable with. 

You should ask if you can get in prior to closing. Maybe you can get a 3 hour window a week or more ahead of closing. Schedule two meetings with GCs (if you are still looking for one to do the work) during that time but don't overlap those meetings.

If I am not doing any work that requires full building plans stamped by an architect and engineer:

I try to schedule closings in the morning and on a Monday or Tuesday. I then go straight to the property and change the locks. I spend a couple of hours taking photos, measurements, and notes. I then leave and finalize my scope of work. Generally I have already done 75%+ of my scope in advance. 

On day 2 (i.e. the day after closing) I like to get a demo crew started. If I need permit I will go in that morning and pull a permit with something like "Remodel of kitchen and baths. Pull and replace fixtures. Removal of non-load bearing wall." If I am not going to remove any load bearing walls during the project then this permit will suffice for the remainder of the project. I require that GCs and/or individual subs pull their necessary permits ahead of when they need them.

Depending on who needs to come through (electrician, HVAC, plumber, etc.) I have scheduled that in advance. So by days 3-5 one of those crews begins their work and the others are already scheduled accordingly to come in behind them. They will have pulled their permits by the time that they start. 

If I am doing work that requires stamped plans:

I still start demo (non structural) with a permit as stated above. I try to have the architect and engineer in on day 2. After that it could take 2-3 weeks before I have my plans and can get them in for permitting. In my case my permits are available same day assuming all of my ducks are in a row. 

For all of the above: I can get roofing, siding, windows, and other outside work started immediately (in most cases this work doesn't require permits).