All Forum Posts by: Erik Garland

Hey gals/guys, I'd like to start a simple, easy to read, concise thread for rules evaluating contractors.  Let's try this....max of FIVE rules per person (top 5), label them YELLOW, RED, RUN(somewhat subjective, but gets the ball rolling) . If you have a statement how to vet/evaluate a contractor then red/yellow flag not needed. Please stay concise.  I will review periodically re-compile the list.  Thanks

There will be another thread for explanations and nitty gritty....this will be one in a series of threads.

DIY rennovations can make help your bottom line a lot....Expensive lessons with contractors can tear apart your margin.

1: RUN: contractor gets out of car smelling like alcohol

2:Yellow: contractor's kid is ALWAYS sick

3: Yellow: contractor slow to provide references

4: Red: No ID presented on request

5: Yellow: Requests to borrow YOUR tools

done...

I'd buy another distressed property for about 10k and rehab it for 5...as a buy and hold.

Surprised so few have mentioned Porter Cable. Great quality. I know it wasn't in the initial list, but if you're considering it ....my experience with it has been awesome.  I rehab by myself and have to Lithium batteries. I have the jig, circular, and oscillating saws, as well as the drill and impact drill.  The batteries charge in 40 min to full so I never seem to run out of juice.  I don't know how that translates if you're working with a team of people who are using tools constantly

Hey BP. This is the short of it. I have a fair application process, and those who pass it get my property first come first serve (signed contract is when I take SFR off market). A lady mostly accepted house out of state (move in to area), but has not gotten contract signed as of today.....but today I have two more prospects that really want it. I lowered my rent for a quick process, but now...

is it acceptable practice to allow tenants to BID  on the rental amount??

How might I go about that?

Could that violate or SEEM to a tenant to violate fair housing laws?  I'm in NC

Thanks

Hey Jason, what did you decide to do..I have a very similar circumstance.  BTW, Jay, I went to the Pro Title Website and really like what they provide.  However, excluding weekends.  I will have about 3 business hours before the auction happens.  Thanks

Hey...Charles.

I have 2 properties and renovating the 3rd.  Lots of questions and areas for you to sit down and brainstorm...put it on paper to help narrow your focus/questions.

Zillow, rentometer, etc helps with rental rates.

you're not going to hardly rent a property for more than the area brings...but you can certainly rent or less

Are you looking at A, B, or C properties (the initial investment amount compared to the return changes)  but then so does the risk

My properties are all in Winston; C properties, but I have paid 20k and less for each.  But in the past 3 years I have had 1.5 month of vacancy between the two properties. 

How involved will you be...you need to know the condition of your properties and if you don't use a property management firm then the tenants should know that you mean business (it's not personal)

Age, brand, and maintenance history of HVAC, water heater, roof, gutters, windows can be larger expenses you should really appreciate when purchasing

Using a GOOD realtor will help you a lot  in learning what to look for.

When analyzing the deal... what are you looking for (turn key properties ...not usually much of a DEAL, but can cut out a lot of time=money)....rehab projects would require another post...but check out the tax card (building value, land value), annual taxes, recent sales ( you may see a trend of purchases/sales), Zillow ( comparisons of nearby properties)

Lots of fun Charles , but proceed with caution!!  PM if you think I can help

I agree with above.  Just finished a clean out.  Drywall contractors were actually excited to take the old fridge and stove off my hands.  Glad I didn't have to deal with them, they were junk. 

If you get help with loading, just make sure you know that they know what the deal is.  Like previous poster said... you will look mighty silly if you have prohibited items in your pile that your HELP loaded. This time around my HELP loaded the trailer in a sub par fashion and I'm surprised it all made it to the landfill!!  Lesson learned...Check your load...and ...No one will do a job like you will...or sub it out and be done with it (but be prepared to pay the piper)

Hey guys...I thank you for your responses.  I was surely not aware of such legalities.  But that's why I came here...to check with the veterans.  I think I will stick  with contractors for now...that way I can deduct most expenses as well.  Small glimmer of a spark in a costly venture :)

Easy question folks. I have an LLC of SFH rentals. I have 0 employees. I do most all renovation my self, but with a 2 year old I want to be home more. I don't want to lose so much money to outsourcing the work completely. So I want to start projects and then hire 'neighborhood' help to complete. Thinking about using lockboxes or digital keypads for security. I imagine the 'helper' will need to be considered a contractor and as such they won't be on my 'payroll' and I don't have to withhold or pay payroll taxes. What issues do I have with liability? Will a waiver suffice. I won't let them use my power tools. My insurance company says house cannot be insured until I have a tenant.

This familiar ground to anyone.  Any help is much appreciated.  Right now I am only letting the 'helper's' work when I am onsite.  But this is much more limiting then giving them free reign to complete said projects.

I hope this is in the right section