All Forum Posts by: Jeremy VanDelinder

@Joe Splitrock Good explanation. Glad you were able to get things fixed back up and keep your tenant. Good job.

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We will meet at 6:00 (or whenever you are able to make it) at Hurricane Grill and Wings in Round Rock. This is a casual time of networking and helping each other move forward in our Real Estate investing.

Event is open to veteran investors all the way through rookies. If you are a real estate investor or would like to be, join is on Tuesday for our monthly meetup. It's always a great time of networking, advice and brainstorming!

I'm sorry you are dealing with this. In addition to being and investor I own a restoration company that specializes in fire damage, so we help you with a lot of weird situations like this. I'm glad to hear you have a professional company to remediate. 

A few observations: Both @Joe Splitrock and @John Underwood are onto something--getting them out is the right away is the thing to do. With all due respect to Joe, it is a huge mistake IMO to let them stay--too much liability and health and safety risk (they really should not even be in there without masks) involved and will massively slow down your remediation and repair process. 

If there is potential damage to the electrical system, there is reason to shut off the power if it is not already off. This action may "force their hand." In normal circumstances it is not legal to shut off the power to force out a tenant but if it can be demonstrated that you must do so for safety, then that changes the equation (although I would consult an attorney before taking that step--I'm not an attorney and don't know the laws of your state. Besides, you want someone to have your back if things go sideways.).

Beside that--code enforcement or some sort of expedited process would be much preferable to the whole eviction process--go through the eviction process if you need to but I would try to do it faster than that. 

I understand both the investor/owner side as well as the restoration perspective, so if you need any advice or have any questions I can answer as you go through this process, feel free to reach out. Again, I'm sorry you are dealing with this, but you will grow as an investor through it.

I'm an investor and own a restoration company. 

This is dependent on state law. Do some research or talk to an attorney as to whether your state allows "Assignment of Benefits." The insurance will pay the last installment (called the RCV--Replacement Cost Value) after all repairs have been completed. If there is an "Assignment of Benefits" contract those funds can go to the new owner, but it may not work otherwise. 

The other "work around" is forming some kind of a partnership where his name is still on the property but you pick up all the costs and then dissolve the partnership and move it to your name after you have it rented out. (This could get complicated--consult a Real Estate Attorney)

Let me know if I can provide any further help. 

Here are a few to research. I manage my own, so I don't use any of them, but I've done business and personally know all of these to be good people: 

David Boswell at Ambasador Property Management: 

Ryan at Stetson Property Management: 

Tim Morella at Real Property Management: 

If you contact any of them, please let them know that I sent you! Good luck.

Edit: BP won't let me post contact info. I will send you an invitation and send their contact info via PM

@Isaac S. (For background--I'm both an investor and own a restoration company) The short answer is no--you don't return the difference back, but it's a bit more complicated than that. My first question is "why did it cost less?" The RCV (Replacement Cost Value) is designed to be the retail price for the repairs to be done to professional standards. Can you save some money from that amount? Perhaps, yes. Should you? Perhaps not. 

Part of the service of a professional restoration company is to be sure that the scope of work aligns with the insurance company and to negotiate on behalf of the property owner to be sure that the repairs are being done properly and fully paid for (less your deductible). If a company does that, then their bill should align exactly with their insurance settlement. Why would they accept less? or "What did they leave out?"

On the other hand if you are not using a restoration company, you are performing that role that yourself. Good luck--you might get a fair treatment from your insurance carrier--some adjusters are honest and knowledgable; some not so much. If you get a good settlement and GC the project yourself, you may be able to save a little bit--but it will cost you in time and effort. 

One other consideration: Your initial payment from the insurance carrier is called the ACV (Actual Cash Value) and is a portion (usually 2/3 or more) of the total settlement. You will not receive the full amount (called the RCV--Replacement Cost Value) until the replacement is completed. If you choose to keep the ACV and never do the repairs, that is your right as the homeowner--they will only pay RCV once replacement is complete. 

So the answer isn't a simple yes or no--Hopefully that helps give some contexts.Please let me know if there are any other questions I can help with.

I'm a restoration contractor (and investor). All of the above is correct and your contractor should be familiar with the process. 

We will meet at 6:00 (or whenever you are able to make it) at Hurricane Grill and Wings in Round Rock. This is a casual time of networking and helping each other move forward in our Real Estate investing.

June 8!! It’s the second Tuesday of every month. Hope to see you there.

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