All Forum Posts by: Glen Gallo

First is have them review the project. Ask if there is something that sticks out. I have seen " wish " plans whereby the city approves and architect plan producer write things in that are not possible or cost prohibitive. 

You should have a solid plan from outset and avoid change orders. A good GC will be able to distinguish this from a quick review.

Ask how they bill change orders. Even with a perfect plan unforeseen things happen. Nobody can see underground or inside inaccessible building cavities. How will they be handled?

For some change orders are an opportunity to gouge and a huge profit center. They happen and often. How they are handled can make or break a budget.

Availability as asked above is key. I would disagree in comment that if someone is available that they are not good. However make sure they have time to start and complete your project.

Run a license check to see if they have formal complaints. It normally has to go pretty wrong before a formal complaint is logged. If there are multiple a big red flag. If there is only one ask it could be a customer that is problematic. 

Get an accord doc that has their insurance information and review to make sure it is adequate for your job. Ask how long they have been with their agent. A good contractor will not shop yearly fore insurance to save coast. They will stick with someone with a good price and excellent service. Are they willing to add you as additionally insured. This is a simple phone call to agent and should not be a cost add on.

Ask for a vendor list. If they are only using big box stores I would think they are inexperienced.

Ask for a contractor list and check them out as well

Use social media yelp angies list to investigate reviews. Can be unreliable as some folks just complain and not everyone uses those. But if there a multiple bad reviews of the company and or listed subs could be a red flag

A schedule of payment underground completed concrete completed x dollars framing completed x dollars rough in x dollars. etc These are considered complete ready to pay when signed off inspection card. Large downs are unreasonable. Its your money make sure they earn it. Landing material and a payment is also reasonable make sure it is signed off as such when paid.

Make sure they are in their field of expertise. Residential and Commercial are very different. Remodelers vs concept to completion are very different. Make sure the contractor fits your needs.

Make sure you like them as you will be working with them. Adversarial jobs are a nightmare.

Best of luck

location is key what are the demographics

$600 for a unit in SoCal seems really low. Especially in greater LA. Why is this so?

What are the capital expenditures over the last 10 years?

The deal you have seems great which gives pause as to why

I am not sure any investment is completely passive. A property management firm can do the heavy lifting for about 10 percent gross. Commercial has a wide range. Single building single occupant. Retail Medical Office Industrial Restaurant and many more. A ground lease single occupant would be the easiest and hardest to find and most likely most expensive. You need to wrap your arms around cap rate so you can recognize when it is being manipulated. Next you need to decide which type of property falls into your range. Next which type of space you are comfortable with. Loopnet is a good place to start. You should hire a seasoned broker that can also be helpful in either providing property management or has a vendor in pocket that they are comfortable with. Commercial is not more difficult per say as all investment property has a learning curve. There is more to process to start as we all live in homes and understand them. Commercial is a different species. 

Best of luck

I can take a look and give my thoughts. If you want a bid that is fine as well.

Having been in San Diego my entire life I am perplexed by the rapid growth over the last year. Hot does not even begin to describe it. My daughter is interested in buying. I understand that it is a sellers market. The competition is tough on a property. How long will this run last? Nobody knows for sure. I thought I would post and see what the experts here see moving forward. I am set personally and market up or down does not really move me one way or another. Thanks

Glen

I do this type of work. 

I am a licensed GC. I am honest and well versed in many trades. I could walk the property and advise based on what you want and how to proceed. I might give answers you do not like. I would do this at no charge and would not expect getting  work out of it.

Alexander

I am not an inspector but trained as one at one point You can bounce onto to the internachi site https://www.nachi.org/ the site has an immense base of industry knowledge.  you can become a member for a month for 50 dollars a month the resources are vast many "classes" to take along with online forums.

What is interesting is the scope of inspections and wording in reports. The business trains and advise how not to be sued. Reports are complete within a scope. One does not report outside that scope

Reports are tailored to specific operating or reporting procedures and software reflects that. There are many free trials.

Any questions you might have I am happy to answer

I have experience as a General Contractor handyman and some property management in both Res and Commercial

We have medical mixed in with other tenants

I think most Real Estate attorney's can help as far a s a contract. By standard lease I assume you mean like the Air Cre? It is designed to be modified and legal here in California. Is this an agent or broker and what kind of fees are you paying him? Due diligence on your part is wise and his suggestion is good advice. Yet he is the one you are paying to advise you, What addendums is he suggesting?

I would interview lawyers in your area not a bad idea to have a relationship with one. Choose one that specializes or is at least well familiar with your type of property. Commercial is a broad brush

Good luck