All Forum Posts by: Jim Goebel

@Adam Craig

There may be other investors in your location that can speak to this, however the folks who facilitate those auctions can probably help you out in this understanding.  I'd recommend reaching out directly to them.

@Andrew S.

@Nathaniel Hovsepian

So, there's the utility shut off, located usually by the street, and then often an inside main shutoff, sometimes 2 of them, on both sides of the meter.  In your case, if you can't see the incoming main pipe, that'd make me at least evaluate the feasibility of getting that access, installing a shut off valve if not there, and leaving access for future use.

Where's your meter?  Usually that's a logical place for your in house shut off valve.

If it cost me more than $500 to do this work, I'd just buy the utility stopbox tool and keep that handy (on site, labeled in a safe spot), going outside to use if needed.  At least with the local water utility here, you can buy the same tool they use at the municipal supply house.

I'm wondering if anyone is aware of service providers, and also, how this would work:

We have our eyes on some auction properties (IE: county auction) - we have funds within a self directed IRA custodial account, and we also have funds outside of this available for these purchases. The rub/trick/challenge with buying these properties through our custodian is the time requirements to get funds to the auction (this is a sherriff's auction) - as they have compliance requirements that eat up some time for review, and I don't think the 3 hours to get funds will work.

I don't think we can buy the asset ourselves with our own funds, and then transfer over, because it would look like a contribution; I'm not 100% sure on this though.

For us, we could guarantee the purchase outside the IRA in the event it didn't get through the custodian's compliance review. If we're bidding on the house, we'd happily have it under the IRA, or outside of it.

We've done one 1031 exchange, and I'm wondering if any niche market/service providers can offer services somewhat like this?  I know we've gotten funds from our 1031 provider to buy an auction property.

Any perspective here would be appreciated.  New to this but would love to figure out a way.  Where there's a will there's a way, I've heard!  Might be an opportunity for someone with the right skill-set and aptitude.

Everyone here can make what they will of your comments. Plenty of people in business have no issue offering transparency into how they do business - including their costs, among other things. My advice to others : don’t hire Matthew Paul or folks who ask for what he’s asking for -

I would not hire you for my block wall project (or others) because you wouldn’t share how much you’re paying for materials and would want a deposit. 

@Matthew Paul

Your advice states your position, which helps yourself - not aspiring or established investors on this site.

Further, you are admitting my exact point - which is that without disclosing material costs, you as a contractor get to obfuscate your labor/profit.  This is not in your customers' interest, of course!

@Matthew Paul

Anyone in business comes across new stuff.  There are seasoned investors and there are those on their way, and there are folks who will never make it there.  We're 13 units in, and have taken on extremely aggressive projects.  That said here we are with something new for me - We have a bowing foundation block wall and are weighing anchoring it, or re-laying a new CMU wall - I haven't paid for this work before (the anchoring or the laying new block wall), and I will be insisting on paying for materials so I know what I'm paying my contractor for their labor.  If it's not in line with what labor should cost, unless I'm in a huge pinch - I'll continue exploring other options.  You recommending an investor NOT doing this, or taking this approach, is not acting as a fiduciary for that investor.

It's important for the audience of this discussion to understand that your perspective (although good to hear), is on the 'other side of the table' and you are, after all - on a real estate investing site.  If you want to go join a forum inundated with contractors you'll see a great deal more trolling, pissing matches over meaningless code interpretations, and poor interpersonal communication skills, which not to broad brush, is much more of the norm statistically speaking in the 'contractor' world.

Regarding contractors using stolen materials, or stuff they have in inventory - I've seen it, now at least 5 times.  These might not be licensed, bonded, and insured types, but these are folks out hanging their hats as contractors - for better or worse.

@Tina McDonald

There's a large discrepancy in answers you'll get to this. Most lawyers will preach the value of an LLC (not surprisingly, right?). That doesn't make them wrong, though. For us, we have insurance that we use and count on and own our stuff under our names.

You'll also want to understand the implications of moving to an LLC on your financing strategy. If you never want to leverage that property, this is probably not an issue, but my understanding is that for a bank to lend with a property as collateral, they are often going to want to see the track record/credit history of that LLC as an operating entity. It becomes a bit of a chicken and egg thing, when you're starting - because at the end of the day the LLC is only as good as its ability to protect you, and if the deed's recorded under the LLC but you're paying the mortgage out of your account anyways, that's not likely to do a ton of good when it comes time to 'be protected' - see 'piercing the veil.'

@KC Conti

I understand (recently) that's the deal in multiple states.

I'd think it would likely be enforced on a complaint basis, or if other brokers wanted to go after you in an effort to keep you 'off their turf.'

Without reading the specific law, I don't know and I'm certainly not a lawyer but I'd bet you can do a lot of good and offer plenty without it formally falling under the 'property management' legal definition.  I'm sure others on here will have more perspective on this.  

@Matthew Paul

@Christine Krizenesky

Matthew, are you serious?  You're asking what does the material cost matter to a customer?  On a site devoted to real estate investors!!!  I commend you for at least disclosing that you're a contractor but you can't expect people to take you seriously, in saying stuff like this.  You are after all posting on a site dedicated to real estate investors, and owners.  If you are an owner or real estate investor yourself, you of course can appreciate the value of having transparency into material costs, including but not limited to:

#1: You get to see where materials are from (sometimes tells you something about their quality, whether or not they're stolen or re-purposed, and of course, if the angel of a contractor is not marking them up 200%+)

#2: You get to negotiate on what's SUPPOSED to be the 'value-add' of what a contractor is offering: their time and supposed experience/skill-set.  Meaning, the contractor cannot 'hide' their desire to make $200/hr by obfuscating a time and materials quote where material costs are not shown

#3: Related to this OP's original question, which is: what is fair, if anything, for a deposit - well, if you as a contractor has NOTHING invested, vs. if you have to front $3,000 to come out and start work - this is a completely different scenario and that transparency would be fair and reasonable.

@Steven Ko

I'm not sure.  It's your land.  I do know that many municipalities have sign ordinances and a permitting process.  Beyond that thought, I'm not of much use, but I'm curious on this.