All Forum Posts by: Mike Kinder

I'd consider a modular build. Today, they look like modern craftsman homes, and as a builder with 180 homes under my belt, I'm never building another home ground up again. They're built to spec and come pre-inspected. You still need to add your costs for lot prep, and get those rough in inspections, but they can come 85% move in ready. Also, depending on the location, most GC's will try to take advantage of location comps when making their bids. McLean to inside the beltway are often $200 sf. Be careful of builders who want you to pull your own permits. 

Any questions, feel free to get a hold of me.

Mike

Wacha mean it's not that easy? 

I've never had 30 years of squirrel damage in an attic, or standing water with mold winking back at me on all the walls and doors, as the spiders and mosQuitos invite me for dinner... 

I'm now a buyer in the Raleigh area from Virginia looking for the more modern Copperheads in crawl spaces, Owls in chimneys and flirting with bats in attics. 

Mike

I just saw the webinar, and had to do a search on ratings before it was over. It's a really sexy application on webinar, but even for the "Get It Now" price may not be worth it if you can't shut it off in a timely manner.  

Who knows this app for an opinion?  Freedom Soft?

@James Masotti You have it correct James. His SD IRA was the buying vehicle and 1st holder that I invoiced. It was the breaking down of roles and responsibilities that we neglected, but not such a serious issue; the deal dropped on me suddenly, and he and I had just met for this purpose.  It was clear I have the crews, and the time; he had the money and no time... his words actually.  After the work, there was little conversation between us for listing the house.  I tried FSBO, but a bit late in the year at October, and I offered up my realtor relationships, he ignored them.  He did call one of our known shared Brokers to list it.  We went from mandatory transparency to none.  He levied expenses from taxes and other holding costs with no invoices to post on the spreadsheet, and no sharing of closing data.  He was very  arrogant towards me, and showed very little respect.  In the end, I did get the money we negotiated, but he tried to leverage more deals into the payoff.   "Contractors are a dime a dozen" he says, yet two months later was calling me to get a quote for a gut rehab.  After what we went through?, he didn't have enough respect or trust with me to share the address, so I could inspect the property; but he sent me a listing of a "same as" property to use as the means to send a quote.  I just told him that I can't quote something I haven't seen, and have him hold me to it;  It was just dumb...  

Maybe it's my opinion, but the relationship in these matters is of utmost importance.  We have to be trusting, respectful and hopefully have some fun, in my mind.  I'm not getting paid until closing, and forgoing profit to the benefit of the deal; this in lieu of skin up front.  Investors get my expertise, knowledge and management skills.  

I'm asking if this is unreasonable...  It's a fair partnership in my mind, and the investor can reap excellent profits for simply paying for the deal.  Am I wrong?  

Please elaborate for me, the partner relationship of Builder and Private Money Investor, that is so elusive. ?  

One deal in particular: I had the opportunity of working 50/50 on net profits, with a private money investor. I post the checks and receipts to a spreadsheet, as a transparent basis for "at cost" renovations in lieu of "skin in the game". I found the deal, I bring the investor, and I bring the labor; the investor bought and paid for the whole deal in 1st position via Self Directed IRA.

As a licensed contractor, I feel that investores need a strong and trusting relationship with a contractor (Value Proposition). Otherwise, they are trying to project manage materials and crews in a process that they're generally inept. My skin is at cost numbers vs. Profit; usually 30% and more for retail. 

My investor, later in the process, began to feel that the deal was inequitable.  Never the less, we successfully finished the job and ended up splitting close to $100K.

I won't get into the "passive agressive" nature of this person that soured our relationship, but the investor came back to recognize the absolute need for a contractor, by no admission, but for returning with a request for quote on their own attempt of a total gut rehab with one of their finds.  

So, Do I Profit on the rehab, "and" put skin in the game, or do we work transparently as partners should?  

Lot Hack: Client took out a mortgage on an Northern VA Home and later, subdivides the lot. This to sell the second lot and pay for his build out of a new home, then build a second house on the other lot to a new buyer (speck or build to suit)

Q:  How does the client workout their current mortgage?  

We are the GC for this build out.  Client wants the GC to try and provide funding for the builds; which is why I'm asking the first question.  

Any ideas would help.  

Mike

@ Wilson:  I'm not trying to help anyone negotiate with the lender, the lender does not exist in todays environment.  I want the owner to sell the house to me, and get them out from under their default.  Prior to foreclosure, the owner is the only one who can negotiate with a buyer.  Alabama probably suffered more than the DC Metro area.  Many homes here are well into equity positions and getting foreclosed on.  $174k foreclosure worth $644K in just one case. 

@ Gino: Thanks... 

@ Schultz:  You were able to work with the institution that reinstated the asset on their books after they foreclosed?  I'm not a realtor, I'm a builder, and not in competition with anyone in WI, but thanks for the response.  I thought Bigger Pockets was for sharing...  ;-)~ 

Any others? 

I've been haunting local foreclosure law firms and finding auction dates with these foreclosures, but in stead of waiting for the auction, I thought I might approach the home owner in distress. 

Has anyone here found any success in sending letters or simply knocking on the doors of these distressed owners?

I feel like these distressed owners would be interested in saving their credit, getting some cash and moving on for getting out from under their "lenders". 

Curious minds...  Thanks.

Mike

I'm Mike Kinder, and new to Bigger Pockets here as a Pro, thanks to one of Brandon's webinars. I 've been a free member for a year or so, poking around, but bottom line is, I desire to make this my primary business. 

I moved to Northern Virginia from Southern California in 87.  Don't like the cold much but love the seasons; my inner conflict I guess...  My brother is a builder in California and is also in the larger bi-folding door business just south of Irvine. 

About me... In 2004, I sold a small tech company with other partners, and jumped into building homes (a calling) as a Superintendent for Lerner (Owners of the Nationals).  As a Super, I learned pretty much every phase of building a home, mostly on the finish end, and I use that experience to assess homes for repair values, scheduling crews and eventual sale. Upon the "crash" of 08, I got lucky with my technology experience, to capture a Project Management job in The Department of Defense.  These skills helped me to  recognize other elements for managing processes.  A couple years there, I had the itch to get back to building, so I went to a local meet up for RE Investment and met a pile of investors.  Lucky me, I know how to build a house and manage crews.  Today, I do this with other investors to fix their assets for sale.

Interesting that home renovation is a much different ball game than just building new, and I love it. 

Q: How many of you can get rid of 900sf of mold and evict several families of squirrels all in one house?  LOL; one of my first flips for an investor, had me doing just that.   

I have interest in many different areas of this "game".  I think I'd like to do Infill, buy and hold, as well as flip; all dependent on the situation the seller is in, I guess.

I've experienced all of these over the last couple years, but it's time for me to stretch my wings, and see how far I can go. 

My biggest need to date is, How do you find the deals? I need a plan to execute.  I'm sure it's on here somewhere... 

I look forward to meeting everyone that crosses my path, and make new friends as well. 

Cheers!

Mike