All Forum Posts by: Jonathan Tremblay

Purchase: 180k

Rehab: 50k

ARV: 290k

Work already started and the 50k is already bid on by a contractor, and the contractor may be willing to finish the job with the new buyer!

Work completed:

The back section of the house was completely torn down and rebuilt from the foundation. The place has been stripped out and cleaned. The framing has already been done for the new floor plan. The roof has been fixed, just needs a few more shingles. New windows installed all across.

Work Remaining:

AC, plumbing, electric, sheetrock on walls and ceiling, bathroom & kitchen furnishings, floors and doors, paint and siding.

Call or text: 404-374-9322

@Christopher Hopstock Had not thought about it that way. That's a great point.

Thank you so much, everyone for your input. You guys have no idea how much I value your input.

@Charles Kao  You are absolutely right, I made a mistake. Several. I realized after calling the permits office, that I could have made a simple phone call. I should have taken more time to research this contractor. The wholesale company that sold me the deal, sales 20-30 deals per month, and this is supposedly the best contractor they recommend... So I felt safe not checking up on him.... Well, I love mistakes, as they serve as the best teachers. I won't be making the same ones again...

@Tangela Shelton  Yea, it wasn't about feeling comfortable, it was just about trust. I trusted the reference from the wholesale company, and I trusted the contractor. I will definitely be ensuring that information is available online for future investors about this contractor and his business. 

@Account Closed  Yes, A month wasted is about 2k in interest alone.. it's crazy. But yes, I can't do anything about what has passed. I will move forward, change things up with another contractor, and make sure not to make the same mistakes. And yes, the "backend" seems so wrong. But it's all good, I will be getting my 12k back or making sure he doesn't con anyone else in the future.

Thank you all for your advice and information! It has helped alot!

Good morning fellow Investors!

So I needed some input into a situation right now from some experienced Investors. 

I purchased my first real estate deal that I will be flipping in 3-6 months with a contractor doing all the work. I put in everything I have into the deal. The contractor came recommended from a wholesaling company that apparently recommends him to most investors. 

So I hand the Contractor 12k for a deposit on a 80k job. I'm thinking, "What a great guy, since he isnt charging me the 20% deposit that most contractors have told me they charge". 

Today, we are now 4 weeks since I purchased the property and the contractor has changed the date of when the permit would be in our hands about 4 times. He has promised to send workers over for to the property to at least start clean up about 4 times as well, and no one has been to the property. 

So I ask the contractor about 2 weeks ago to email me the plans from the architect so I can at least see what is being submitted to the city. I ask him about 3 times, and he says he will, and I never get anything. 

Finally, I decide to call the city myself since the contractor refuses to email me any documentation of the process. The city tells me that NO application has even been started for the property, and we are now 4 weeks in! I get pissed, I call the guy, and I tell him to cut the sh*t. I tell him that I called the city and that he hasnt even started the process! He starts telling me that he is in negotiations for a permit with someone in the city through the "backend" in order to get things done faster. He tells me NOT to go to the city, cuz if I do, I could mess up what he is doing in the backend. 

He reassures me, says he is a reputable company, and he himself has 7 kids, and he wouldn't do this to me and my family. Frankly, the way he is talking, I want to believe him. He tells me to give him till Monday. So I give him the benefit of the doubt.

Honestly, I don't want to believe that he is maliciously attempting to rob me or anything of the sort. I talk to the agent that recommended him, and he says that right now, the contractor seems to be overbooked. But, I do feel like he is lying to me about doing the permit process in the backend, and instead of telling me that maybe he hasn't had time to even start the process, he has been lying to me this whole time about even starting the process, because I have NEVER heard of government employees bypassing the process dictated by the government, just to help someone out. 

I have sought legal advice and I told this contractor, if he didn't show me at least SOME evidence on Monday of the process, we will part ways. How do you guys feel I should handle it? Have I handled it properly so far? What is your opinion as a seasoned investor? 

Thank you for your time! 

Good Afternoon Everyone!

So I am finally going to do my first true flip. I am no facing a situation that I did not have when performing live-in flips, which is insurance for flipping. I know that there are special insurance policies that allow for vacancy situations. 

While I know I could call all the insurance companies, I figured, why do that when I have an incredible community of awesome people who must know the BEST insurance companies.

I am doing flips in GA, so I don't know if that makes a difference for this type of insurance, and also I am doing a flip that will have about 190 to buy and fix, and should sell for 240-245. Again, not sure if that affects which insurance is best for particular situations. Thank you!

@Curt Smith Yea, I am a member of GA REIA too and we actually met a few weeks ago. I have even tried to reach out to GA REIA and you to get help but didn't get any responses. Perhaps you should email me when you get a chance at jtremblay(a)roireporting.com. Thanks.

@David Nguyen Absolutely! And yea, too many contractors out there can make it with subpar service and work. Well, thank you, sir, I look forward to networking further with you!

Good Morning Everyone!

I wanted to find out from everyone if they knew any great contractors in the Metro Atlanta and surrounding areas! I am looking to start flipping on a full-time basis, and I was hoping to find a great contractor that can do it all and is not going to be change-ordering me to death for properties with an ARV of about 100-200k, potentially higher if capable. I will be starting out the contractor on maybe 2-4 properties for the first year, and potentially as high as 10-20 properties if the contractor proves they can handle it.

I will do my homework, calling references to ensure that I get the very best guys. If anyone has a great contractor who they think could fit this, I would really appreciate it. I will be flipping all over Atlanta, including Fulton, DeKalb, Gwinnett, Cobb, Clayton, Coweta, Douglas, Fayette, and Henry. Thank you.

@marvin, just thought you should know, I am closing tomorrow at 52k with all closing costs paid by the seller. Got a bit of a scare when the property appraised lower than expected due to improperly updated property tax records. Luckly the buyer understood and is going to close anyway. 

I kind of realised last night that the 52k could have significant effects on my taxes and I dont even have a cpa or accountant to consult on how I can avoid paying taxes on all that money. Then there's the tax bracket effects.

I lived in the property for more than 2 years, so I wonder if selling the note, essentially getting my principal , will avoid the capital gain tax. I also wonder if the amount will count towards my tax bracket. 

The crazy part is that I called 3-4 cpas in my area, and they all took my number and never called me back. Had 2 call back and say they weren't taking new clients or werent interested in working with an investor or small business owner. I was floored. 

Soooo, Im opening this up to the Atlanta community, can anyone recommend any good cpas that work in the atlanta area with real estate investors? Looking forward to your ideas and references. 

Wow, nice. Everything is easier with cash/equity on your side! :D Great job.