All Forum Posts by: Jeremy England

Thanks.perhaps this may get complicated but If the home is titled to a living trust how does that work?  Are all the persons in the trust then considered in the income requirements

What are the tax implications of a retired senior living on ss, but owns their home outright and wants to get a heloc to invest in real estate?

For instance.  Get the heloc, , fund a deal as a private lender, upon disposition gets a return on that money. Lets say 5-10000 every 6 months, on top of the heloc cost.  

Id that short term capital gains taxed at 20pct?  

 Is there no contractors licensing in your state?  In Florida, you can't be your own GC in anything other than your personal residence.  Same in Alabama

I try to be as accommodating to the permitting and planning department as I know how.   

Reviewing their online procedural content prior to submission. The land development code will usually spell out exactly what is required for whatever it is you are doing.  Uploading all the documents requested to the online application on the first go.  

Inevitably, there is always some kind of hold up.  But we are talking days, not weeks. 

Each permitting department is different.  So I think its important to review any online content that department has put out before.

If they aren't online.  Well then just go down there and be polite.  Just ask around and people usually will help you out.  

As a builder/investor, I'll give you the perception from the contractor perspective.  When they hear "investor friendly" this is what they perceive.

Investors want it done for bottom dollar, so they find the cheapest contractors.  And most times they aren't even contractors, but unlicensed handymen.  So professionals have to compete with lowball pricing.  Demand is high, so they don't want to waste their time. They've read all the BP books on negotiating and to be frank, we don't negotiate.  The price is what it is.  It costs nothing to NOT hire me.  

Investors often don't want to pay before they refi or sell so the contractor is waiting for the money; and they are more likely to be stiffed by the investor who made a poor investment to begin with. 

Investors often claim they will provide repeat business, but there are so many new investors who have no track record of that. 

Investors want contractors to give free estimates on multiple prospective projects.  estimates take time.  Time is money 

So what is someone to do?  Make it clear you'll pay for the contractors time to quote the project.  I'm talkin general contractor who has to price out multiple types of materials, multiple trade subs, deliveries, etc. A whole house gut rehab costing about 50k shouldn't be expected to be estimated at no cost.  If you are dealing directly with tradesmen yourself such as painters, plumbers, etc etc.  Then most times this should be free. 

Insist on an actual contract with a payments schedule in it.  If they don't have that, then you should question who you are doing business with.  Any professional contractor has a contract with clearly defined scope and clearly defined payment schedule. 

Don't add to the scope of the contract without the expectation costs should be added.  

Time of completion should be defined in the contract.  You add to the scope, you also add to the time.  

Speaking of contracts.  If an investor insisted I sign HIS contract rather than my own.  I'm walking away.  

If you want more professional contractors, you need licensed guys.  Maybe your state doesn't have licensing.  If that is the case, then it is what it is.  You should be vetting them anyway.  Do they have court actions against them?  Online reviews?  web page?  Legit businesses will have at least a small web presence these days.  

Know your state laws when it comes to licensing and contracts. In Florida, if you contract with an unlicensed contractor, that contract isn't enforceable.  

Third party inspections are expected.  Its your prerogative.  Never built a home that a buyer didn't bring one in.  But what does the contract specify?  Is there a finish schedule?  Has the contractor not performed in accordance to what's in the contract?  Are there defined quality standards.  I specify in my contracts that the home will be built in accordance with the NAHB performance guidelines.  That gives a defined, quantifiable standard of quality.  For instance, if the concrete cracks, it must be more than 1/4" of displacement before it is considered defective and calls for repair or replacement.  

I know Im late to the party on this post but I just finished a duplex in Pensacola.  

You need to look up the land development code in Houston and figure out what you can build by right in different zones.  For instance, in Escambia county FL, I can build a duplex by right in the Medium Density Residential zone but ONLY if the previous zoning prior to 2005 was R-3 or higher.  So its sort of confusing, but there are online GIS maps that give the current and prior zoning designations. 

AS far as a cost estimate, you can ask some local builders who have built duplexes.  Its texas, so no licensing required out there I hear.  Like the wild west in the builder space.

 How do you mean?  Like using someone's SDIRA to fund the build?  or the SDIRA actually owning the property?  I'm not sure how that works. 

 Can you explain waterfall structure on profits?  I haven't partnered with any investors on specs and am looking for ways I might do that.  

 Whats the split?  I50/50?  Are you getting a fee or waiving any builder fee?