All Forum Posts by: Lorenzo Wright

@Jaden Adams

A couple things to consider.

1. How do you know that real estate is supposed to be your future and your passion?

I am all for pausing school while you gain some experience, but I think it's naive to say something is your future if you haven't done it yet. To me, it sounds like you might be in love with the idea of real estate. When the reality can be different.

2. Not all schools cost 100K. For example, for my home state, AZ in state tuition is under 10K a year, plus there are grants and scholarships. There are multiple continuing education solutions.

@Dylan Thomas

If I was the seller in this situation I would have likely walked away from your offer and ignored any future offers, especially after the 1201 AM antics.

IMO, putting those conditions in your offer just signals to the seller that you are likely going to be a pain to work with throughout the entire process, nickle and diming everything little thing along the way.

Sounds like you missed out on a good deal.

@Amy Zemser

Hey, I just spent a good amount of time investigating this because I got curious.

I found this through some crafty google searching which took me to the NewYorkSenate.gov site.

I am not a lawyer, just a land lord who likes to read the laws with my own two eyes and not be totally dependent on a lawyer.

Section 226-C

Notice of rent increase or non-renewal of residential tenancy

(d) If the tenant has occupied the unit for more than two years or has a lease term of at least two years, the landlord shall provide at least ninety days' notice.

https://www.nysenate.gov/legislation/laws/RPP/226-C

How your tenant knew this law is amazing to me. Good luck!!

I'd start with estimating the time/cost it would take you to do it, then double both (unless you have a decent amount of experience).

Next, I'd get some quotes from contractors with good timelines, then add 20% for overage. 

Compare the two with the expected rents and see which one makes sense.

I really like doing work on my properties, but I do have multiple years of construction experience. Sometimes I only do things that are going to save me the most like cabinets or tile, and then I'll contract out things that take a lot of time and are relatively cheap...drywall...I really hate drywall. 

The way I look at it, as long as you aren't out any money I would let them out of the lease early. That being said, there are a lot of factors to consider. 1, your time in dealing with the fact they are breaking the lease. 2, costs to place a new tenant (in Maryland going rate is 1 months rent). And 3, but often overlooked is the fact that now you are trying to rent the property in the off season. January/February is a lot worse than April. To offset this you can try and get the new tenant to sign a 14 month lease.

@Michael Ealy isn't that pretty much the definition of BRRRR???? Just on an MFR scale?

Are there bad contractors that are going to run with your deposit??? Sure, but for every bad contractor there is also a bad investor/ home owner that has not paid a tradesman upon completion of a job. Yes, a contractor can put a mechanic's lien on your house, but that is little recourse to putting food on the table.

As a former subcontractor, I usually requested a deposit on larger jobs, $10,000+, on little stuff I wasnt as worries about it. 

Now, as an investor I am still willing to put a small portion down up front, and then I work out a draw schedule. GC's should be used to working like this. 

Bottom line, if you have a good working relationship it will be less of an issue. If you are forcing your contractor into letting you buy materials and then refusing any money upfront I guarantee you are getting the special P.I.T.A. pricing.