All Forum Posts by: John Arendsen

As a distressed property general contractor, RE broker, investor and property manager who has been specializing in mold remediation, rehab foundation, drainage and structural issues for 3 decades I'd have to agree with Johnathan. 

When we are contracted by a homeowner to repair mold related damage we never give a firm quote. It's always done on a T&M basis or we don't sign a contract. I'd rather walk away from a deal than be plagued by it and worse to lose my shorts on it.

You just can't determine how much damage has been done i.e, drywall, paneling, plaster, insulation, structural components i.e. framing exterior siding and even fixtures and appliances, etc. until you've done a thorough inspection. 

This generally involves a certain degree of destructive inspection which you would be responsible of repairing unless the homeowner, bank, law firm or in some cases insurance company is willing to pay you to do the reparation of the destruction you had to administer in order to determine the degree of damage.

I've had decades of hands on experience doing these types of repair projects and many of them have ended up costing tens of thousands of dollars. Some have exceeded 50k because as we got into the project we kept discovering more and more damage i.e. dry rot, framing deterioration, decomposition, etc. 

Not trying to make a mountain out of a ant hill but these things happen more often than not. So trying to determine the ARV on a mold issue is a lot more complicated than just stainless steel appliances, new flooring, granite countertops a paint job and a new lawn which are all fixed costs that can be easily factored into an F&F..

What you think can be a clean 50k ROI could end up costing you your shorts. Take the advice of those who suggested that you get a licensed, bonded and insured mold remediaton specialist to do a complete and thorough inspectin even if it cost you a couple of grand for some rudimentary destructive inspection. It will probably be the best investment you could make on this property. Just sayin..........................

Ross McKenzie

Am I missing something. I know I'm a newbie on this platform but I thought this was a BUSINESS (CAPITALISM) PLATFORM. I didn't realize we all deserve trophies.

While I don't believe in raking a little ole widow over the coals there are those homeowners who have been quite derelict in their homeownership responsibilities and commitments and frankly have let the home fall into ruin and haven't been diligent on their financial contractual responsibilities. For those I show no mercy as the last time I checked PROFIT IS NOT A DIRTY WORD.

Jonathan Wilks

Thanks for the heads up. Appreciate the feedback.

Rick Harmon

Didn't really appreciate the snide and sarcastic comment. All my hats fit quite well thank you very much. They have all worked quite harmoneousilhy together for decades and have made me lots of $$$.

Don't feel as though I owe you any explanations but for the benefit of others who may read your rather brash and unwarranted reply it goes something like this.

I started as a general contractor in 1986 doing rehabs and retrofitting on MH's and due to some of the trades I was performing on them was required to get a MH contractors license as well.

During the 1994 Northridge earthquake I started storing totaled MH's and derelicts at my construction yard then started dishing them off to ranchers and brokers from Mexico and was thereby required to obtain my manufactured home dealers license due to the volume of business I was conducting.

I then used my dealers and contractor's licenses to purchase new MH's directly from manufacturers, installing them on lots/parcels and reselling or rent/leasing them. When I started buying MH's in resident owned park communities or on private land and reselling them I obtained my RE brokers license once again because of the volume I was doing.

I've been a developer by default as when I do purchase a lot/parcel and replace an old home with a new one or purchase an empty lot/s and develop them out I either sell them or keep them in my rental inventory.

I've been dealing in distressed MH & site/stick built properties for 20 years and do a combination of all the above so I think it prudent to keep all my licenses and qualifications current and in good standing.

Lastly, I've been a construction defect, park management/owner harassment, drainage and fraud expert witness, Industry expert for the California State License Board, consumer advocate at large for various TV, Radio and printed media outlets as well as a forenencis expert and consultant for myriad state attorney's general, district attorneys offices, county, state and federal agencies for over 20 years.

Interestingly all the aforementioned entities have retained me for any/all of my credentials during this time.

Great podcast. I think I've been a member of his linked in forum for quite awhile but never really been too active on it. I'm going to start paying a little more attention now.

I'm a seasoned general & manufactured home contractor & dealer/developer, Real Estate Broker, investor and property manager. I've been thinking about purchasing probate properties in the San Diego, South Riverside (Temecula, Murietta, Hemet, Palm Desert/Springs desert area and South Orange County. Any tips or suggestions on how to find probate properties on fast turnaround all cash deals?

Nothing wrong with rentig to college students especially if their under age and need co sigs  from Mom and Dad. Great insurance. If not just get 1st. last and a juicy damage deposit (if permitted in your jurisdiction) Furnis cheaply if at all execpt fo low end appliances (not including small appliances i.e. toasters, mw's, etc.)

One thing you need to bear in mind is that unlike personal reserves, windfalls, earned income, savings, etc an LOC is leveraged capital that you'll be paying interest on. I remember not too many years ago in '08-'11 when the whole fix and flip thing started steaming up and folks with limited funds, especially leveraged funds, via hard money lenders were jumping into the fray like a leaky sieve only to be stifled long term turnarounds on the flip side.

In the first couple of years, and I'm talking the San Diego Market only, the rapid fire turnaround time on F&F was as fast as 30 days, then 60, then 90 and soon some flips were taking as long as 120-160 DOM before flippers were revisiting their capital and repaying their hard money lenders. 

It didn't take too long for HML's to start getting a little spooked and calling their notes putting many investors in peril and some OOB altogether. Just sayin.......................

Eva Salas

 "Mine sucked! Drunk, off-topic, expensive with even more up selling...deplorably manipulative!"

 Can't tell you how many seminars end up this way. There's good seminars and then there's those not so good ones. You have to exercise as much due diligence choosing viable mentors as you do purchasing your first investment.

The very first principal they teach you when you are studying for your RE license is "REAL ESTATE IS LOCAL". If you go to a seminar and some so called guru is painting the entire industry with one broad brush that's the first signal to bail. 

What's happening in Cali definitely isn't happening in Fla! I'm not all that impressed with siminars as they tend to be filled with a lot of hype and acute hysteria. The truly best way to get plugged into what's happening is to GO LOCAL.