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All Forum Posts by: Landon Thomas

Landon Thomas has started 6 posts and replied 30 times.

Post: Seeking a General Contractor in Montgomery county

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

@Brett McCurdy

I might have a suggestion you could try.

When I'm looking for subs, superintendents/GCs in a new city, I contact the building department to see who is pulling permits for like type projects. It's all public record, so if they give you any push back, ask for their FOIA (Freedom Of Information Act) form and most can turn around permit info to you in a day or so. 

Now this method gets you honest/permitting contractors, but maybe not immediately the handyman you are looking for. Start a discussion with these companies, and most everyone probably knows the 'Old Guy' that's looking to maybe scale back his hours at the end of his career.

I've never had to hire a FT handyman myself, but I know I would be looking for that Old Guy with all of the experience.

It's definitely a lengthy process requiring a lot of calls, but I think you will find you end up with quality leads, rather than the quality you likely got off of CL.

Post: First house under contract!! Help with rehab scope?

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

@Aaron Mikottis

Congrats! Looking forward to your updates. 

Maybe your not showing it because you are only inquiring about SOW, but remember your contingency. 10%.

Post: Your Project Manager | Pay Structure and Incentives?

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

@Ashley O.

I spent some time working for an architect as his sole PM in his design build firm here in Chicago.

I'd imagine answers to your questions will vary based upon the character of the individual PM. Some people have the mindset of just getting by month to month, but larger thinkers will look for something more comprehensive. Since you're a one on one partnership it should be easy enough to understand what motivates him. 

-Does he think of your business on a project by project basis? 

-Or maybe he has a larger out look and would prefer to have a bonus structure based upon annual net? 

I would think that the latter would be preferable since your PM wouldn't just look to get the job done, he would also be looking to be an advocate for you and your company. A salesman of sorts.

Maybe just give him the option?

Post: Perfectly Nasty Hubzu Deal

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

Eh well, I'll give it a good effort, let my realtor see if he can find a good contact as well.

Post: Perfectly Nasty Hubzu Deal

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

Watching a Hubzu auction that ends tonight. Its base bid is too high so it will likely expire. The place is perfectly nasty to scare most away and I would like to have it at the right price.

Anyone ever try to contact the listing agent shown or even the bank to make an offer, post expired auction? How'd it go?

Post: adding / creating mother-in-law suit at personal residence

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

@Brandon Turner

 Really interested to see how it turns out, are you the next Panama Matt? 

@Walter Pape

I am looking at an 8 bed, 2 flat tomorrow with a advertised "basement mother-in-law suite". Zoning shows R3 (two family residence). This deal will only make sense if I can figure out how to get it rezoned as R4 (Limited General Residence) and split the basement as a legal unit. Definitely look into zoning as others have suggested. I haven't experienced what happens with zoning violations, but I'd prefer not to find out.

@Wendell De Guzman

I spent sometime downtown working with a design/build firm. I have a couple of contacts. One specifically in the Lakeview, more specifically Roscoe area. I'll reach out to them, not sure if they will go that size, but they have done 12 units and sizable mix-use. I'll PM if we get anything back.

Post: Newbie from western Chicagoland

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

Brozny! Solid name. Thanks for the intro, looking forward to seeing you around. 

Post: Car Share Services - Way Better NOI than your Rentals?

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

$100/door and your good! They've all said it, but what if your asset is depreciating? New industries create new questions.

Car Sharing, its like Vacation Condo Rentals for your car. Because you've already hit it big investing in real estate, you have an extra Tesla... or two in your driveway? Well there are plenty of shared economy applications that allow you to earn extra cash off that battery powered ego machine(s).

Really though, what if you tried to make a car sharing service into a investment model? I researched a bit on:

-what vehicles where popular on these car sharing services, 

-which had lowest acquisition vs rental rates spreads, and 

-what areas of the country seemed to have highest demand. 

**Disclaimer** I have my own thoughts on why this likely would not work, but I'm interested to see what others think on the growing industry of 'Shared Economy'.**

So, NOI looks to meet the $100/unit requirement, would you still invest into a depreciating asset if it cash flowed?

Post: How do you keep a GC motivated to get the job done.

Landon ThomasPosted
  • Developer
  • Elmhurst, IL
  • Posts 31
  • Votes 7

@Michael NotoRight on. Being a rather green GC myself, I can already see getting stuck in my own ways and often thinking 'that client has no clue what they're talking about'. Everyone only knows what they know and we can all be stubborn. Schedule delays are an area that may require some tactful finesse. 

You have to recognize the character/attitude (as Michael said) of your GC, just as I have to recognize the character within my subs. Maybe look into hiring someone you jive with better next time. Maybe next time find the GC you don't mind or fear saying 'WHAT THE...!?' to him, knowing that he can take it and return with a response that is both constructive and professional. 

@Karen Lindstrom  In the meantime you still have that GC to motivate before you reconsider working with him again. This is a method I have taken when working with my subs who are delaying. There is a lot to read between the lines and it really comes down to your effectiveness in communication and persuasion:

1) Accepting Your Own Mistakes: 

Start an honest discussion, maybe accepting some responsibility at first for whatever you may have done that caused a hiccup in the project (no matter how small or insignificant it is in comparison to their delays or mistakes). 

2) Offering Help: 

Then ask 'What can I do to help out?' offering to do some leg work on orders or maybe clarifying an RFI or something with the architect. Just something small is fine.

3) Let Them Call the Shots:

Next, ask him 'While I'm working on that order and the RFI for you, and if you had a week, could you write up a schedule of the remaining milestones?' Don't approach penalties attached to those milestones in this first conversation. 

4) Friendly Reminder:

Follow up a few days before you are to meet about the schedule and ask if your meeting is still on to review it (give him a chance to write it up, because he will likely wait until the day before). 

5) Finalizing Schedule:

While reviewing the schedule, add a few days to a milestone here and there to show that you are giving grace periods to them. If you don't agree with how long something will take, ask their opinion why it will take so long and maybe verbalize that you just don't understand everything that goes into a particular phase. After hearing them out then ask if they are really sure there is no way to reduce it.

6) Post the Schedule

Both of you sign on the schedule, post it on the front door and mark off the days that have passed since your last visit (Notice **days**, plural, more below). 

**Bonus Item if you're feeling chipper** Bring them donuts or a sandwich now and again, because your $20 spent on lunch will return happy, better quality, harder workers.

7) Missing the Mark

If they miss a milestone, ask them only then if you need to establish penalties. They will likely recognize that they are the ones who missed the milestone date that THEY set, and likely correct course. Just as @Steven J. pointed out.

8) Backup Plan

While all of this is going on, maybe start talking with some other GCs, maybe start some conversations with other BP members to find investor friendly types in your area. Have an established relationship with a GC so that if you have to you can break and settle contract with the failing GC and not miss a beat moving on to the next. (breaking a contract clean and quickly requires another long winded post... won't go there for now :)

As a final insight and a definite no-no, as repeated by many homeowners/investors... don't do daily site visits or spend hours on end on the job site. Although you own the property contractors want own their work. If the owner is onsite constantly they/you will find more to worry about, causing more chaos. Construction is like child birth, you definitely don't want to know everything that happens during labor. The difference is you inherently trust just about any doctor, but you have to find a GC you trust.