All Forum Posts by: Chad Clanton

Egads. We're at that point. I don't usually do this, but I can refrain no longer.

@Account Closed, actually, the "system" has yet to benefit me, per se; it actually makes many things more difficult after a fashion. Having a license largely also just means you can be sued for signifanctly more. Even so, the specific points you mentioned, in my personal opinion, would just kill the industry, though the attorneys would probably experience a major uptick. Sheisty  individuals, and in some cases organizations, who twist, manipulate, and take advantage of the system and loopholes therein are the main problem. I'll also go so far as to assert that individuals (investors are notorious for this) who don't report and actively pursue those who break the law or ethical standards, whether regarding contractors, "professionals", unlicensed activity, or otherwise do everyone a disservice. It can be time-, effort-, and in some cases funds-intensive, and not all areas pursue/enforce equally, but letting these people off the hook over and over simply creates more of the same. 

**Ok, off my soapbox for now.**

@Randy H. sounds like you've got your ducks in a row, congrats! I know you said you won't be scammed, but be aware there are many types of scams and a lot of private money scammers floating around, even on BP. If something seems off, especially in light of your offer of very good returns, just be careful. If something seems hinky, just check with the community here and I'm sure you'll get plenty of help. Good luck and let us know if we can help with anything!

@JD Barrera, the prices vary quite a bit by contractor. I will say that lowest bid is not always best, look for licensed and insured contractors to provide bids when the time comes, and utilize very clear and detailed (itemized) scopes of work. Don't pay much out up front on the work. Mileage will vary significantly by contractor, and hopefully you'll get some good input from others here to help with your specifics. Good luck and feel free to reach out if you need anything.

@Jay Hinrichs, you're incorrect, there are at least 3 or 4 contractor licenses required in Texas for certain trades (tongue in cheek). Seriously though, a bit too much deregulation in my personal opinion, but I could beat that horse all day and I'm pretty sure we're on the same page there. And yes @Account Closed, there are quite a few reforms I could think of that would be great. Unfortunately, enforcement of current standards is the biggest one. Remove commissions and you have zero motivated realtors who actually care to learn their jobs (in my opinion, anyhow). Get rid of agents owning or brokering investment properties for friends or family and I'm pretty sure you'd only have three or four people in the state who own real estate. Also, the MLS feeds to public sites such as Realtor, Redfin, etc, it just doesn't include all the data and not necessarily in realtime, but plenty to get a start on. Low inventory will always create the same problems with acquiring property. As to the broker, I'm a fan of there being a broker because when the agent goofs up, the broker can a) backstop and b) is on the hook. There are plenty of shady dealings in real estate, but the vast majority of them are conducted by shady people, not specifically because of shady laws or regulations. Do I like the way everything is set up? Absolutely not, but if you look beyond real estate, you'll see that it's just as prevalent in other industries, just with a different flavor. Some places are tougher on it, some less. Enforce standards, no need to arbitrarily create more rules and regs.

@Adriana Jimenez, bigger/"retail" contractors will almost always be more expensive, but I honestly have yet to find a smaller contractor who would a) show up, b) do the job right, c) not bid low and then keep trying to tack on all kinds of additional costs, d) know what he was doing, e) not subcontract all his work to other contractors with questionable skills, ethics, etc...and etc. To my way of thinking, the better branded the company, the more they have to lose. Require proof of ACTIVE insurance (to the day, if possible), not just their license. Once you count all the wasted time going through small contractors, letting them know theirs subs aren't there, renegotiating contracts, explaining how a contract even works, etc, you could probably have paid for an actual retail contractor. At least, that's been my experience. VERY detailed, line item (with line costs) bids included with the contract, how change orders are agreed to and authorized, things of that nature can help you monetize progress in the event they slack off and get let go, but can also help protect you from bogus contractor liens (read: extortion, to my way of thinking). I'll also mention that I REALLY like security systems. Simplisafe makes a basic but very functional monitored system for a reasonable price, and it's very easy to install. You can move it right from house to house as you go. Shoot me a PM or ask here if you have any other particular concerns and I'll help with anything I can. Take care and most of all, invest smart!

I've done a few flips here in SA, and been a contractor and inspector as well. The core thread is the joy of finding the right contractor. Or the right contractor for the week. Or... Point being, finding good contractors here is an adventure. In the past couple years, there's approximately one out of the 50 or so I've worked with that I'd even consider recommending, and he just does AC. Half the others should really have been taken to small claims court (though that's often a waste of resources), and a few others weren't straight up prosecuted because SAPD either doesn't fully grasp or care, one or the other, about things like fraud, money laundering, and significant theft of service, etc. It's pretty unregulated (from a real world perspective), which can be great but often ends up being a pain. Here is a link to a post I did on vetting contractors here in SA, perhaps it'll provide some insight. Let me know if you'd like to go over anything; take care and best of luck!

@Susie C., that's great, I'm glad things seem to be working out. My only caveat is to continue doing your due diligence during the progression, as well (confirming work phase, quality of work, compliance as necessary, etc). It's not uncommon to have strong starters but veeeery sloooow finishers. Please don't take that as a grey cloud comment or cynicism, I've just run into it quite a bit myself, as have others. Treat it like a business and you'll do great. Keep it up and let us know how it turns out!

@Account Closed you may want to confirm if anything sctually took place at the house. I've run into a few places where neighbors provided inaccurate information. Checking police reports/filing a Freedom of Information Act request for the address should get you what you need, or at least further on your way.

I don't work out of CA and do not know the laws there (and hence what info may be available), but have you checked for a drivers license, vehicle titles, or done a debtor search through CA's UCC Connect? You may be able to find a viable point of contact through one of those. Alternatively, a PI may have access to info that you don't, even with TLO. Good luck and let us know how it turns out!