All Forum Posts by: Gary Parker

@Aaron Mazzrillo

I certainly stand by my mention of @Michael Quarles

I just absolutely love when I get on a thread and @Aaron Mazzrillo is making comments.

@William Hochstedler made some very good points. I am actually glad UDOPL is starting to fine people for improper permit. Since I have chosen to pull permits, it is in my best interest if more and more rehabbers pull permits. It more levels the playing field when negotiating purchase price.

A licensed contractor can also do or inspect work such as framing and Sheetrock that less expensive labor can do. Somewhat a grey area in Salt Lake County. OK it is black and white. Technically for a laborer to frame a wall the licensed contractor must be on premises while framing takes place at least that is what I was told.

Figure out a way to survive until your marketing works. I think a smart guy at 19 needs to stick it out until he figures it out. Some people make a ton of dough as an agent. And I agree with the Gary Keller books.

I am very glad I almost got a two year degree in accounting. I really like that it is much easier to talk with my tax guy.

@Josiah Halverson starting one rehab ago I started pulling a permit for each job I do. I have always hired licensed electricians, plumbers and roofers with or without a permit though. Yes in my past life I didnt pull permits. Since you are somewhat familiar with my Sandy rehab, let me tell you exactly what I will have to do there that requires a permit. The roofer pulled his own permit for the roof. The window people will pull their own permit for the window replacement. The only new construction in this house is new kitchen and bath electrical circuits and new hard wired smoke alarms, moving washer hook ups-some cast iron replacing-new shower/tub valves and a new shower pan and frame two walls and add a door. The first step is plans. You will need to submit 2 sets of plans to the city and pull a permit. I have an electrician who is also a GC so he draws my plans and applies for the permit. Then I have my plumber pull a permit. Most areas will want a licensed plumber and electrician. Really not sure if a GC in Utah can do plumbing or electrical.

In Utah a handyman can be licensed and their work limit is $10,000.00. This is not just their scope of work but the total job weather the handyman does the work or not. So if the total job is over $10K a handyman should not be framing or anything that will be inspected.

Now right or wrong here is real life on the Sandy job. I left for a 10 day vacation and have only had the roof permit pulled. One is suppose to pull a permit before any work starts. I am not going to hold the job up so as you know, demo has started and now done, framing starts tomorrow then plumbing and electrical. A shower pan needs two inspections, the material that makes up the pan and the sand mix concrete that goes on top. I will have the framing, plumbing, shower pan and electrical done when I get back, and I choose not to have the first shower pan inspection. Ill pull the permit when I get back then get the inspections done. Typically because I use licensed electrians and plumbers and the GC reviews the handyman's framing, there shouldn't be an issue. There could be though. If the city gets mad they can charge double permit fees and make me rip the shower pan apart.

The point I hope you see is that with 3 days a week you should be able to manage the job just fine. Yes you will go nuts the first time, but you are a smart guy. Sometimes it is easier to just go for it. You should be able to pull a permit as an owner then hire licensed subs where required. As far as insurance goes, each licensed sub needs to give you proof of liability and workers compensation insurance. If you hire a GC don't assume he his getting the proper proof of insurance, see it for yourself. Most every worker even licensed handyman will have no insurance or maybe just liability. As a company you can pay workers compensations premiums on the workers you hire.

Maybe start marketing an see what happens. If an easy deal comes along start with that. If a harder one comes along sell it to me or partner with someone.

Sometimes I wish I could buckle down and know exactly how many letters I send each month to a specific group or list. Some lists or groups may have 20 new names a week that one mails to forever, some lists may have 1000 names you check against new names once a year and everything in between. I do test new letters now and again. My thinking says testing is best saved for a more mature business where volume is very high. Even if volume is high, one usually has those lists that add relatively few people each week or month. Of course this is coming from someone that is struggling a bit thinking about how to move to the next level which is a whole 'nother story.

@Danny Chan how is EDDM working for finding motivated sellers?

@Lync Jones sub2 means subject to the existing mortgage. Ill give you an example of a purchase I made last September. The property was older but had new roof, new HVAC and an updated electrical system. The house was worth $140 as is and $160 with 8K in updates. There was a mortgage of $96K on the house and the seller HAD to walk with 10K. It was too skinny to do a rehab for me; however, the payment including escrow is $726 and the rent is $1295. So I bought the house for $106K plus some closing costs. The seller let me keep the mortgage and $726 payment and I paid $10k in cash. Keeping the mortgage is buying subject to the mortgage.

Having said all of that, in my opinion, one must be very careful with sub2 deals. I will only buy with equity, houses in good shape, no adjustable rates and i intend to keep the property. I want to have the equity so I have a higher chance of selling if necessary.

There are varied opinions on BP about sub2 and I would read them all if this type of investing interests you. Jeff Brown wrote a great blog about a year ago or so about this subject.