All Forum Posts by: Matthew Hubbell

Were you able to secure financing for your project? I agree, many banks have pulled back but many are still active, assuming lower LTC than you may be accustomed to these past few years. 

I'm a multifamily lender, actively financing projects nation-wide. I specialize in Fannie Mae, Freddie Mac and FHA debt. If you send me a message I'd be happy to chat about what we're seeing in the market.

@Theresa Harris Agree, it's too late in my opinion but he's pushing back. The scope evolved and we did more work than initially planned so even his first invoice for that unit exceeded what he quoted.   

Looking for advice on construction costs that a contractor claims changed…after the work was completed, billed and paid.

I recently finished renovating a property. My contractor billed for the first unit (#4) when renovations were completed in April 2022, invoice was paid immediately. He chose not to bill for the remaining work until the rest of the units were completed. His final invoice includes $8k of additional costs on unit #4. He claims the prior invoice mistakenly included unit #4 renovation at cost, without labor and a few subcontractor invoices that trickled in later. Keep in mind, his initial invoice which I paid 8 months ago, reads “here is the final invoice for unit #4.”

Had the contactor raised this oversight within a reasonable time period, it could have been easily resolved. At this stage (8 months later), I question his validity. 

This feels like purchasing a new car, driving off the lot and being told that the dealership forgot to charge for floor mats when you go in for your first oil change. End of the day, my goal is to improve the homes for my tenants and turn a profit. I believe in honoring contracts and don’t ask others to pay for any mistakes I make. 

I appreciate any thoughts on how to handle the situation and if I'm obligated to pay the new bill. Fyi, I won’t be working with this contactor on future deals, for this and other reasons.  

Thanks

I echo @Wyatt Johnson's recommendation. I recently closed on my first out of state investment and replaced the existing property manager with Sunlight. Amy has been extremely responsive and professional. There are more affordable management agents in Billings but from what I've gathered, they don't offer nearly the same level of service as Sunlight.

@Melissa Zimmermann Thanks.  With that project no longer on the table, do you still see the area considering other initiatives to attract new businesses and younger generations?   

Does anyone have a status update on the One Big Sky District in Billings? There was a lot of publicly available information leading up to the pandemic but I’m now struggling to find an update or amended timeline. Anyone active in this market have insight on where things stand or any aspects of the development underway? I’ve reached out to the development team but am waiting on a response.

Thanks!

@Griffin Goudreau Just sent you a note.  I'm in a very similar position and am interested to hear if you chose to invest local or out of state.  

@Dan H.

Appreciate your insight! I agree that you must factor the increased risk into offers during these uncertain times. 

Are local investors waiting on the sideline until some of the uncertainty associated with COVID subsides? 

Has anyone seen significant price reductions for properties left on market? If so, would you be comfortable moving forward with a transaction under the current environment even at a below market price?

@Anthony Horner @Twana Rasoul @Dan H., @Trevor Haney

I leveraged a similar service called Bungalow when I first relocated to San Diego in 2018. They manage a portfolio of rentals across major metros and rent only by the room. This was ideal for someone like myself that was relocating to a new city and wasn’t interested in living alone. Rents were also more affordable than if I was to rent a studio or 1BR in the same submarket.

This route took the hassle and uncertainty out of signing a lease from across the country. I selected an available listing and toured the property and my living space virtually. I was then put in contact with the roommates who were given 48 hours to reach out if they had any questions before determining if I was a good fit. My favorite part about living in this space was the diversity that this type of housing promotes.

Flexible leases required a small premium if you signed a term shorter than 6 months or went month-to-month. Utilities were included and the living areas were furnished (i.e. couch, TV, kitchen table). Tenants were responsible for furnishing their bedrooms.

Notably, there were two times within the year I spent in this home when at least one bedroom was vacant for over a month. Property operations in this type of housing really come down to management and minimizing turnover.