All Forum Posts by: Eric Burns

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@Benjamin Sulka I usually pay a minimal amount up front then have draws arranged on a timeline with the necessary work being completed as a requirement. Ideally, I pay for the materials to start the job, and pay a smaller draw in good faith.

Have them sign a lien waver as well. That will protect you from the other side. The contract they sign should be as detailed as possible.

In my experience and opinion a contract who is worthwhile will be used to the terms and confident in his ability to complete the work.

I had to fire a contractor not that long ago. The upside is I finally learned my lesson and am willing to pay a reasonable premium for quality.

@Derek Fike there are so many options and buying right in the market you choose will always be the priority, in my opinion. There may be better markets but I know my region is strong. I live in Cincinnati, which is less than two hours from many hot markets.

I’m actually a licensed agent, so you would like any market info let me know. I’m happy to get you some info.

I have been looking at commercial real estate lately, and I feel more comfortable in a less hot, popular markets. For example, I have a 40 unit under LOI in Dayton, OH. Popularity and making too many lists leads to a lot more attention from other investors.

I look at deals in hot markets, but also pay close attention to smaller markets. If I may ask, do you have any connections in markets other than CO? If you have a contractor or real estate connection that exists, that’s always a good place to start.

Sorry for the novel.

@Linda Gozar how has your search ended up?

@Jim K.

I’ve found that contracts are apt to work off of referrals. For example, the contractor I currently use was a referral from a high volume friend. Do not haggle, rather get multiple bids. Either they are too busy and over bidding or they are a legitimate contender and their skill set is in high demand.

I have contractors come out who are more expensive than they used to be, but still offer extremely fair pricing and responsiveness. These same contractors won’t even call back the guys who referred him to me, because they constantly try to nickel and dime them.

Multiple line item bids can give you a sense of what things should cost. Keep a spread sheet, dial in on your own estimations and work your network.

If they are insured and professional, there is nothing wrong with trying out a young guy from a local meet up, BP or Facebook group.

Lastly, I caution to you have a realistic time frame and penalties built into the contract. They will job hop, so tighten up that contract. I recently ran into this problem as well.

We would love for you to join us at our startup group: Impact REI. This week we will discuss current obstacles and crowdsource solutions. Please bring ideas of what you would like to see from a group!

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IMPACT REI is a new meetup in the Cincinnati area. The group will meet in the evening and during the day on alternating Wednesdays. Most importantly, the group is structrured to faciliatate learning, growth and accountability. Come out, network, grow and let real estate Impact your life! Reply here, search Cincinnati Meetups or reach out on Instagram @burns_real_estate. Hope to learn and grow with you!

New Cincinnati Meetup! A contunuation of last week's Wednesday meetup. Impact REI will be hosting a meetup this Wednesday at 1 PM. The discussion will center around goals for this year, and material and presenters memebers wish to see. Hope to see you there!

Do hard money lenders ever take over loans from a small bank mid-project? The details and timeline of the deal have not changed, however the small bank I used (who came recommended) has proven to be a hindrance and I’m disappointed in how they misrepresented the value they brought to the table for a new investor.

The bank will not release funds for work completed because of a semantics involving the original renovation list. I was told I could get a more accurate list approved when the bid came in which was not the case.

Now after paying for the loan and floating renovation costs I am slowing progress and low on cash until I receive my draws, which they will not let go of.

I’d love to hear what you all have to say. And yes, I already know I’m an idiot. Thanks.