All Forum Posts by: Jon S.

Thanks for the information, that is helpful especially when you don't have a clue what it was, but wow can it ever be time consuming. 

I spoke with the lender, I told him it was quite challenging to categorize all the purchases and asked him if there was a certain way they were expected to be done. He said he has seen them categorized so many different ways, that any method was okay. 

So I updated the Pro account history to make sure all the purchases had the correct job site name, then downloaded the history for that job name into a CSV, opened that in excel, then sorted all the purchases by department, by category, and even by sub-category. I used either the departments or categories that home depot provided to lump sum the expenses into, and created a report from a resulting summary spreadsheet. I made two columns, one for labor, the other for materials, and if I knew the labor was x dollars for a specific job then i singled that out, otherwise it went into general labor. If i knew materials were for a specific job i singled that out, but otherwise it went into a home depot category. 

Apparently it was sufficient as the bank has verbally indicated they will be refinancing the property. Still waiting on getting a closing date. 

 Thanks Steve!

@Asad Shaikh

Very creative design. Wishing you luck in this. We have similar interests. I’m in Tampa and would love to observe this project.

@Dan V.

You were correct! I was able to connect QB and my HD card. It wasn’t connecting last time we tried, but now it is. Thanks again

@Scott Smith

Thank you

@Ashish Acharya

Thank you Ashish. Glad to hear this is not unusual. I will definitely have an attorney draw up the agreement, open a new LLC for the JV, and make it between my LLC and their's. All good advice, thank you.

Could this blow up in my face? I bought an SFR that I haven't renovated yet. I own it free and clear. I have $100k in it. It needs a full renovation of $$40-60k depending on how extensive the rehab is. My capital is tied up in another project, so the renovation would have to wait until my other refinance completes.

Meanwhile, another investor who knows my situation has proposed that they renovate it at their expense as a joint venture partner. They have overseen a couple of my renovations before and now they want to be on the investor side with me. They were on the investor side long before I was so they are not new to REI and renovations and I n fact they have been a mentor to me in REI. They would be fully responsible for the renovation labor and expense.

I would like this JV to happen but I have no idea how to structure an agreement contract. How can I structure this deal so that all interests are protected? How do we determine a formula for profits.

What about alternate scenarios? If the flip doesn’t sell how would that scenario work out financially for all parties? If it doesn’t sell and becomes a rental, then what?

What if they go over the agreed renovation budget?

They are doing some of the work, how is their labor calculated?

What other problems or red flags should I be aware of?

@Shayna Hatcher

I’ve had two tenants with felonies. They were both upfront about it. Both have been fine tenants.

But the bigger question is why don’t you have more inquiries! Is something wrong with your listing?

One had a rap sheet a mile long for drugs and petty crimes from their teen years through their forties, and they were still on probation. I was absolutely crazy to even consider them but a mutual friend seriously vouched for them, the interview went well. Long story short, rents always on time, apartment is well maintained, tenant is always pleasant, no problems. He has been a model tenant.

The 2nd one had one felony, and was going through a diversion program. His fiancé was employed, his employer and references were all good, her references were good, he and she interviewed well, and he and she have been model tenants.

The house fire is worrisome! Did they forget to turn off a burner? Are they smokers? Find out the cause of the fire. There are a lot of red flags here, so I’d be very cautious. Make sure you understand the details.

On the other hand if you had more qualified applicants you wouldn’t be asking this question. If I don’t have a few inquiries daily I automatically assume something is off with the listing. Price? Ad copy? Photos? Figure out what you need to change to get the inquiries flowing.

Final note, you could take the headache off yourself by paying an experienced realtor to screen the inquiries and find a good tenant. Some will do it for a percentage of the first months rent.

@Roger Steciak

Good articles! Thanks for posting.

Dan, thanks, I have to give that another try. Maybe Home Depot is allowing the consumer cards to work with the QB link again. Either way, with direct connection or with export file, this would be the best solution for future tracking. Much appreciated!!!