All Forum Posts by: Jeffrey Vegh

Hi all! I wanted to get everyone's take on how you handle management of property taxes and insurance in your properties. If you have a mortgage, the lender will likely open an escrow account to handle that, but if you purchase the property in cash, how do you manage those payments? There are no options currently to escrow those payments for you if you don't hold a mortgage. 

If given the opportunity to have your taxes escrowed, is that something that people would generally take advantage of?

Full disclosure - I'm working on creating an escrow product for non-mortgage homeowners and am trying to gauge whether this is something the market would want. I would love to hear the input from this community on whether this is a problem that you would like to see solved. Knowing that banks do not allow homeowners to escrow once the mortgage is paid up (or if there's no mortgage to begin with) is a huge gap and leads to a lot of people either missing tax payments or sticker shock when the payments are due (since most people generally do not know how to save appropriately).

The idea for my product would give people the same convenience as a traditional bank escrow account, with certain added benefits including: 

- higher offered interest rates (as opposed to close to 0 with traditional servicers)

- lower 'cushion' needed (meaning, less cash sitting in the account)

- ability to use multiple modes of payment (e.g., credit card, crypto, etc)

- ability to use the account as a general savings account with high yield as an option

Hoping to get some input/feedback. If given the opportunity to build your ideal escrow product, what would you want to see it have?

Hi Ivana, feel free to reach out! I live in New Rochelle and am a licensed agent. Would love to connect!

I think, theoretically, I like the idea of taking the construction headache off of my shoulders and having a vested partner take on that role, especially if it means equal risk exposed in the deal (him with construction costs and me with other financing costs). I think you're both right in that it is probably just better to hire them out. Thanks!

Hi all,

I have one fix and flip property under my belt that I did solely on my own (no investors) and took on all costs associated with the project, including all rehab costs. For my next project, I was looking into taking on investors. I've always liked the idea of partnering with a contractor, so that I wouldn't need to worry about any of the construction headaches and they would handle everything in a timely manner (especially since they would have a vested interest), while I handle all other costs/investments related to the property. Does anyone have experience with a partnership like this, or can shed some advice? How should a deal with a contractor be structured? The few hesitations I have about partnering with a contractor, as opposed to simply getting an equity investor and sub-contracting the project out, is that there's no way to know what quality materials are being put into the project (e.g., it would benefit them to go as cheap as possible) or if it would be better financially to just hire them, instead of partner with them.

Thoughts? Advice?

Thanks,

Jeff

Hey DeAnna, thanks for responding. It's in New Rochelle. Do you mind forwarding me the contractor's contact info? I'll contact them asap.

Thanks!

I literally just went through this process last week trying to secure a builder's risk policy for a deal I'm working on. I have some names/numbers to share if you're interested. PM me if you're still interested.

Do you also happen to have any contractors to refer in the area? I'm having a tough time finding a contractor that wont bankrupt me with their estimates. Someone reasonable with experience in investment properties/rehabs/flips?

I'm about to close on my first investment property, which is a short sale. There were some last minute issues that popped up on the bank's side, which we are working through, but it has delayed my expected closing date. In the process, because of the delay, the contractor that I had lined up for the work took another job since we didnt know when (if?) the deal would close - totally understandable...why would he lose out on work?!

If anyone here is in the Bronx, Yonkers or Westchester areas, does anyone have any licensed/insured and reasonable contractors to recommend that can work with me on my rehab? I'm pretty close to closing (maybe another week or so) and need to hire someone asap. Thanks in advance.