All Forum Posts by: Joey Chrisman

Yeah I mean I have a few relationships with different subs from previous work I have done on my own house but becoming a contractor might cost just as much as hiring one and getting the insurances/tax/legal set up.  Not too mention the experience that a general contractor would bring over what say my knowledge is for dealing with permits and code.  You could always hire a bad general contractor or one who uses bad subs.  

Hello,

First time flipper here.   I am interested in buying property and rehabbing it/changing it drastically from what it is now.  In Scottsdale most houses can't really be flipped profitably say by just adding some lipstick now.  Basically this project will require permits being pulled and an extensive rehab.  My question is how do most flippers/rehabbers in AZ operate.  I'M guessing many people, especially first time flippers do not have general contracting licenses but according to AZ law it states that if a house is built to be sold within 1 year of it being completed the owner/builder needs to be a registered contractor or hire one otherwise it's a class 1 misdemeanor.  It seems like there is a lot more liability than most people see when dealing with construction and flipping places.  Especially if say one of subs who may not be licensed or have insurances gets hurt on your flip.  I guess I'm just confused because on here because many people say to not hire general contractors  as you can figure out the process your self.   Without a general contractor license and not holding the insurances needed you run a lot of liability risks that nobody tries to sue you and your business.   It seems for any extensive renovation that needs permits pulled you need to either be a general contractor or hire one and the sub contractors that are used in building the project need to be reported to the city.    Anyone on here have experience in AZ doing extensive rehabs and how the law works for remodels?    

Well looks like we all got duped. Glad I only invested 5 K. **** definitely hit the fan and I am glad I never got any of my friends to invest in this debacle. I was pretty hesitant to begin with though and kinda thought I might lose the money. I first invested 5 k with them in may and rolled in over once and then got a check for 7800. However I invested another 5k that was to be due for the return on the 12th. I am just curious with the SEC and everything if they are going to make the investors that came out with profits return monies? My net loss is 2200 now, which is small compared to what I was thinking about investing and now I am very glad it is only 2200. I don't blame the losses on Gene or Pinnacle. All of us on here were the ones that signed the check to em, so Its our own damn fault and we should just eat it and take responsibilty for our actions. I mean hell it definitely sounded to good to be true and that it was. I guess since their assets are frozen there is now way in hell I will be seeing that return. oh well I will live on.

I invested 5k with them blindly after talking with one of the reps in May. I reinvested the 1st return and in Sept I closed the account and cashed it out. Recieved fed ex package with check. Total Pay out of 7812.50. Not bad for 3 months time. My biggest problem with the company, many of you have noticed this, is the lack of honesty in discussing what the risks are with this investment. Unless they are getting the foreclosed property for dirt cheap, it seems like it would really be hard to make a 25% return so fast. I mean that is some pretty damn expensive financing. Also what happens if the projects don't sell? Where is all of their cash coming in from besides investors? With interest rates rising it will be harder for their buyers to get financing, I would really like to see their cash flow statement. I think that is the biggest risk, is that their cash flow dries up and they are not able to pay the investors their so called promised returns. However they have been lowering the rate of return, it used to be every 30 days, then it went to 45, and now it is at 60 and they say it will likely go up to more time next year. I am going to get a company head and invest some more money, but I am definitely not going to bet everything I have. Just look at this way invest small to begin with, take your principal out once ya double your money and then leave the profits in and forget about it. If ya loose it then your still at break even, if the company doesn't fold and there around for 3 more years it could be worth alot if it is continually reinvested.