All Forum Posts by: Kevin Martin

@Rachel A. How much were you thinking to pay cost plus x for a project like yours? I’m just curious....

Watch out for hidden costs....you still have to "develop"(Utilites, tree removal, driveways, walkways, landscaping, fencing, grading, filing, digging, hookups, ect ect.) the lot before they can place the modular. Depending on the lot that can easily be another 10-20k and that doesn't even include the foundation. The only benefits I see is timing. If I can pick up the phone and say I want a 3/2 1500 sqft house for around the same price as a stick build delivered and installed on my foundation in 30 days then that would get me excited.  I don't think the "final" cost are the same or even close but I could be wrong. 

I heard today from someone who bought some of their properties and he said he was getting a net 4% return! How does that get anyone excited? He did mention that it is ultra passive but 4% in RE? I think long term government bonds could match or come very close to that. They are buying anything and everything here in jax. Building new, rehabbing, buying tax deeds, ect etc...I like them because they are setting the comps in local neighborhoods that need improving but I would like to see how thier business model survives without such a strong market. 

The geology in Colorado compared to Texas is vastly different if I am not mistaken. I would assume driving or pushing a pier through sand and soft clay if much easier then gravel and rock. Probably is the reason for the price difference but it could just be because of supply/demand.

Please tell me where I can get a house for 8k with $1500 in rehab that rents out for $750/month! Does it come with a Flak Jacket?

@Carolyn Morales so you do a title search on every piece of property before you bid online? What happens if the property gets redeemed last minute....cost of doing business? I have a good amount of experience with development locally and if you are buying mostly land then I could see how a title search(along with zoning, utilities, ect.) might be more important with tax deeds than an existing SFR.

if you are going to build this in the middle of nowhere where the city/county doesn't care then go for it. If you need to get it permitted then just forget about the idea. Lol. Seriously I've been approached by a few investors for plans/engineering to permit a container home and the city shot them down very quickly. I know it can be done but I don't think it's worth the time and money to go down that path. 

it's is good business to collect a deposit for both parties. On the homeowner side I wouldn't pay any money until I have a signed agreement with scope of work, schedule, and verified his liscense. On the contractors side I want to see my customer committed to moving forward, knowing details of what they want, and getting the work done. Anything over 1/3 upfront in the construction business is too much in my opinion. If the contractor has his sh$t together and his references check out I would have no problem giving him 1/3 upfront. 

@Brandon Temples Yes I am an engineer and tend to overthink new things I get into but I typically try to look at the worst case scenario  work backwards. It might be worth it to start the quiet title process first while you are getting it ready to rent and get it out of the way. That way if you do need to sell it in less than 4 years you can do it as quickly as possible. Thanks for your feedback!

@Mark Fries Thanks for the heads up....I went on the city site today that lists all the properties up for sale and found a couple that might look interesting. Do most properties get redeemed by the current owners last minute? Should I wait until the day before the auction to look at what is for sale so I dont waste my time?