All Forum Posts by: Josue Velney

@Lynnette E. I know a guy that told me he has been chasing a GC in court for two years. The GC was licensed and insured. This GC did not have any assets in his name. Everything was under his girlfriends name. I honestly don't think that owner will ever get his money back. Giving up so much money upfront is bad business. 

@Matthew Paul an owner has the most leverage at the beginning of a contract. Once he gives 43 percent down the owner loses leverage. Momma didn't raise no fool!! If a GC does not like my terms that is fine with me. I will hire another one. 

@Alexander Felice I am a licensed GC and full time student majoring in construction management at Wentworth Institute of Technology. I asked my professor his opinion on the matter and he agreed with me. He would only give a GC that much upfront if he had a relationship. If a GC need that much upfront their business might have financing issues. Please believe I did acquire 39 units by giving out my money so freely. 

@Alexander Felice I understand what you are saying. The reason I am unwilling to pay 43 percent upfront is because I don't have a relationship with the GC. I have heard horror stories about general contractors running off with people's money never to be seen again. If you did decide to take the GC to court it would take years to get your money back plus legal fees. I currently have my GC doing the project. Win Win I get quality work on my terms. That my friend is good business. 

@Matthew Paul the GC my company hired does not operate that way. On a job that sizes he would not even ask to paid till the job is complete. If A GC has good finances he won’t need 43 percent upfront. Rule one, the person with the gold makes the rules. 

I recently purchased a 1402 Sq ft condo in Charlestown MA. I knew the condo association was reviewing bids  for an upcoming exterior paint job and repairing rotted wood. After closing on the condoI asked if they could send me the bids. As a GC myself I like to review that kind of stuff. I could not believe my eyes. A few bids came in around 45k which I was not shocked at. I was shocked when I saw one bid as high as 102k. The biggest issue I saw on the bids was everyone wanted 10 percent down the day the contract was signed and 33 percent on the day work would be scheduled to start. Long story short we I refused to let the condo association sign anything. I have always said you can trip over a good electrician and a good plumber but finding a good GC is like hitting the lottery. Nobody should ever put down so much money prior to any work being done. I understand materials cost money but 43 percent down is unrealistic.

Redfin has a great business model for the owner not the employee. I know a few agents that do lots of deals every year but don't make to much money. If you want to work your *** off and make no money it is a great place to work. 

@Jerry Quintiliano I would not worry to much about rates right now. The focus should be on finding great deals. Finding great deal is the most difficult piece right now. If you find a deal at a great discount it will make up for the rate. I hope this helps. 

@Sharad M. Great read!!! You are a great investor. Please let me know how the training goes this weekend. I started looking into the training and like what I see so far. I will see you at the top my friend. 

Great question, this questions is very similar to what comes first the chicken or the egg? In this example I would contact the seller. If you saw this for sale buy owner property who else is looking at it? Lock the deal down and find the money after. If the deal is good enough you will find the money.