All Forum Posts by: Account Closed

Hi Everyone,

I have a property with a retaining wall in desperate need of repair and I need a reliable contractor. The wall supports my property's driveway and is approx. 50 feet long and gradually increases from less than a 1 foot to 10-12 feet in height (imagine a right triangle). I have a contractor but he has been unresponsiveness over the past several weeks and I need to find a reliable contractor that could do the required work according to my engineer's drafted plans.

Any solid references for a contractor that is reliable and can get the job done efficiently and effectively would be greatly appreciated.

Thanks!

George Sarianos

Any feedback would be appreciated. Thanks.

I find most of the desirable areas in Philly have already gone up in value and consequently offer cap rates well below 10 percent. Student housing around Temple University can potentially offer higher caps but you have to be selective block by block given the neighborhoods surrounding the school. Good luck!

Hi everyone,

I was wondering if anyone has used this company for financing? Here is the company http://aurelianlending.com. 

They seem to have good financing programs but was wondering if anyone's used them, specifically the unsecured LOC program. What your experience has been, etc. etc. They almost seem too good to be true.

Any feedback would be appreciated. 

Thanks,

George Sarianos 

Thanks everyone for your replies. Given the neighborhood, the 6 acre lot would be divided into three 2 acre lots and each lot would have a 2,000 single family home. I think what really hit home for me (from your replies) was the fact that a 10 day due diligence period doesn't fly for land development (which makes sense).

@Karen Margrave I really like the idea of partnering with someone that knows about sub-division and land development. Unfortunately, my network only includes other investors that have done traditional flips. Do you have any contacts in the Philadelphia that have this experience and might be interested?

@Matthew Paul What would an option on the property look like? I understand the concept but how would I right that up in a contract? Would it be a clause within a purchase agreement for the existing house or is it a separate agreement?

The estate is selling these 2 properties separately, so I'm looking at the house on the 2 acre lot this afternoon. I'll also have a better idea of what the 6 acre lot looks like.

Hi Everyone,

I'm looking at a potential purchase in the suburbs of Philadelphia. It consists of 2 pieces of property: (1) a 2 acre lot with a 2,000 sq. ft. home and (2) a 6 acre lot of land (no buildings on it). Since I've never bought land to sub-divide it nor have I done any new construction (I've only done standard fix and flips), I have a few questions. I'm hoping to get the community's perspective.

1. In talking to a number of contractors, new construction in the Philadelphia area ranges from $100-$150/sq. ft. What I don't know is what is typically included this price. The main things that I'm curious to know if they are included are (a) foundation work (digging a hole for the basement and the foundational concrete work) and (b) driveway/sidewalks.
2. In terms of new construction in a sub-division situation, the costs that I am coming out with are as follows. Does this list look complete and/or accurate?
   • Interior design professional (not sure about the cost yet, any feedback here would be appreciated)
   • Architect (to draft up the house plan)
   • New construction (cost/sq. ft.)
   • Foundation (if not included in the new construction #)
   • Driveway and sidewalks (if not included in the new construction #)
   • Landscaping
   • Deck (if the neighborhood calls for it, but not sure yet)
   • Permits (if not included in the new construction #)
   • Sub-division cost
     • Engineer plan write up (estimating $1,000 - $2,000)
     • Township fees and costs (not sure how much this is yet)
     • Lawyer fees (is this applicable?)
3. When I buy properties, I always include a 10 business day due diligence period to bring out my contractors, get quotes etc. etc. not unlike most of us on Bigger Pockets. What I can't figure out is how do I get all my ducks in a row within 10 business days for this type of question. It is reasonable to expect to get all the individuals involved in question #2 to get me concrete numbers and deliverables in 2 weeks? I've never done this before so I'm not sure if professionals like architects and interior designers work that fast. Not to mention how long a township's procedures are to actually get a sub-division approved. If not, what are the core things I need to do during the due diligence period prior to purchasing this land?
4. What else am I missing?

I'm hoping to given an update as this progresses. Thanks in advance for your opinion. I do appreciate it.

Thanks,

George Sarianos

Congrats on your 1st deal! Very happy to hear success stories. Keep up the good work.

Lauren - Welcome to BP. I'm fairly new to the business and new to BP as well. My biggest lesson learned so far is not keeping tabs on my contractor. I've done 1 flip since starting (we have 3 projects right now) and during the 1st flip, my partners & did not set a schedule for weekly meetings with the contractor at the property. There were weeks that went by without checking in. In the end, we made a good profit but our holding period was approximately 9 months, of which it took 6 months was for the rehab to be completed. Although it was a complete rehab, it dragged on longer then needed. I now plan on having weekly meetings with the GC in addition to laying out a timeline to manage against. I hope this helps. Good luck and make sure to check in with the BP community as you progress.

Fair point about SOWs. I can't say we put together a detailed scope of work but instead gave them an idea of what we wanted to do throughout the house. I will do an SOW on the next property and report back. Thanks everyone for your input/feedback. It's been very helpful.

Emilio R - What is "lump sum by trade"? Also, what is a reasonable payment for a detailed bid? Great suggestion on taking notes and included it in the contract.