All Forum Posts by: Jeffrey Stasz

I'm a builder in Charleston SC and also happy to have a call if you'd like. The next thing is to get your trades lined up and get them going. Start with HVAC or Plumbing then roll in to electrical and keep going from there. 

You could also hire a GC to come in and finish this project. It will just depend on your lender. You should have a discussion with your lender and get really clear on expectations. Some are happy to keep extending as long as you're paying the note, others are less happy to do that. 

We are planning on going over the in's and out's of estimating as well as the common contract types and the benefits and draw backs of each. 

If anyone has anything else they'd like to cover please shoot me a DM or respond in the comments 

@Troy Gandee great market assessment. Curious about your outlook on the neck. We know it's going to turn but when? Seems to me like that place is all value where the question is when not if. 

It will depend on the area and corresponding category. Category 1 the house will need to be on the National Historic Register. Category 2 the house needs to be older then 50 years old and owner occupied. Category 3 is pretty much a free for all. 

There is no connection between parking and STR.

Parking is a zoning issue and occupancy load issue. If you are already zoned as a triplex then parking rules do not apply. 

If your engineer specifies TStuds at 24" the inspector should not have much of a say. 

They also make an uninsulated version which I think could be even better. The open cavity would increase the speed of electrical and plumbing runs and then you could foam or bat the entire cavity after the fact. Super interesting product. Now I just need to find a project for it. 

I've been looking at this product. I think it looks really promising. Would love to do a build with this product. 

@Paul Paquin Call Mark Dallas up in Hudson. He is a very good GC. 

I am a developer and a GC and I gotta say, I don't do these partnerships for a few reasons that I will outline at a very high level below: 

1. Skill/Value mismatch: In the current environment the value of a deal and capital do not generally equal the value of the skills and connections to execute on that deal. Many investors underestimate how much time and money goes in to becoming a good builder. Under most circumstances, a partner would get more value from the partnership then I would even if we invested the same amount of capital. I try to avoid unequal partnerships. 

2. Opportunity Cost: Current margins on build only projects are pretty good. If I am going to risk capital on top of that I need to see exceptional returns. Most flippers are not willing to make that split. 

3. Headache/Heartache: Any client/provider relationship can be difficult. It's even more difficult when the client and provider are financial partners. It makes overcoming disagreements very difficult. 

4. Goal mismatch: Investors are generally focused on maximizing returns (as they should be). As a developer and builder I am focused on returns and portfolio. That means I often leave money on the table to build a better product because the short-term returns do not outweigh the long term value of building a superior product and superior portfolio. 

@J Scott rightly asks "What happens if you need to fire the contractor" it's a good question. But also ask "what happens if the partner/builder needs to fire capital". It's asked far less frequently but in an economic environment where capital is more of a commodity then a qualified team of builders it is a question I believe should be asked more often. 

If you need additional GC contacts up there or want to get into the nitty gritty of deal structure shoot me a DM and we can get on the phone. I started my RE career in Hudson NY. 

Best 

Jeffrey 

As a person the regularly builds 1+ mm dollar homes I humbly recommend you think about your potential buyer. 

That buyer will do more due diligence and have more options then buyers in other segments. They will likely want to know more about the unit and the rehab and they will certainly know if you cut corners. 

Not all segments are the same. What works for a rental will not work for a starter home and what works for a starter home is not going to fly for a Million plus. 

If you're serious about this house and this price point, I think you really need to consider more then the drywall and take a deep look at the systems. From insulation to HVAC to electric. 

If the customer has the money to buy the house they also have the money to afford better lawyers. 

My two cents. 

@Greg Dickerson thanks for the spot. I called two subs and my supplier at ABC and you are right. I was high. Clearly we don't install a lot of Vinyl. 

@Dave Rav I own a construction company so any development work is done in house. 

I do think there is a difference between "extras" and ensuring the asset is protected. So, I would probably demo the old siding and upgrade my WRB prior to installing vinyl. That said, I focus on a very different market segment (mostly 800k to 1.5 mm on the residential side) so that dictates how I approach things.

Water issues are the number one cause of litigation in my line of work so I am very focused on water/moisture management.  We actually won't take on work unless we are happy with the WRB specs as the risk of litigation is simply too great. 

Hope this helps. 

Jeffrey