All Forum Posts by: Mike Campbell

Scott;

1st always use the KISS approach to any project or deal, the more complicated you make it there more complicated it will be.

I have built for investors, custom homes and specs, all different in there outcome of how profit ended up.

Get three bids with their schedules and there plans, this will give you an average, call there references, I mean previous homeowners that the bidders built for, pick up the phone and call some trade’s, the construction business is a small world all the trades/suppliers worked or knows somebody that have worked for the GCs.

As for what to payout would be, my rule of thumb is, cost to build x 25%, the 25% covers my overhead, taxes, legal fees, mister Murphy ECT, then I verify that number with a CMA from a Real estate Broker, if numbers line up then where good if not the adjustments will be needed. Then of course the bank will require an appraisal to verify their end.

A quote from Napoleon Hills, Think and Grow Rich

He who helps plan the battle does not battle the Plan.

Good luck

Mike

When I’m building for investors, in the housing sector, it has always been a 50/50 split, I did all the work/management they put all the money, and nobody got paid tell house sells.

Ginny;

I make an Itemized record of all repairs and cost's, this includes everything, light bulbs,blinds, paint, cleaning behind stove and fridge what ever the costs to make the property ready to rent again. I guarantee you, depending on the tenant, the invoice will be higher the there deposit, let them challenge it, they will lose every time.

As per the urine smell, I bought a run down 8 unit apartment building, each unit was so bad the 1st thing that burned where your eyes, the 2nd was your lungs from the smell, each and every unit.

Pull the carpet and padding, then go take a shower, its grouse, then wash walls with heavy bleach water, then pour and scrub heavy bleach water in to sub floor until it is soaked. open windows let dry and air out for a few days. Paint floors and walls with oil based kills stain blocker a couple of times, smell gone. it will be harder for urine smell to penetrate that barrier.

As to the future of pets, My DAMAGE deposit is 575, if there is A cat or A small dog I add 475 for a total of 1000, this covers the cost of replacing the carpet. I have it written in the lease as well as the rules and regs attachment that they sign and agree to, if I smell urine they bought me new carpet........  The only people who take me up on this are people who take care of there pets. So far So good.

Good luck

Mike

I bought an apartment that had the Urine smell issues, pulled all the carpets poured buckets of bleach on sub floors and washed walls with it too, opened window's, let air out and dry for days. Bought Kills oil based stain blocker paint, painted walls and sub floor twice, all smells gone for ever, the building is an 8 unit. Problem solved 

 Yes the might be willing to pay $220.

I have explained to them that we will be building in the middle of town, connecting to exciting water, sewer and storm that have been there for sometime, like buying a house to flip, there might be issues behind the walls we cant see yet, because of that we might be a little high for CYA purposes .

We will not be putting in Phone lines.

Sewer & Storm including structures

Water mains and Hydrants

Dirt work, dirt removal and or bring in.

City has said they would be interested in paying for Court yard development, because it would be considered common area, Side walk, Trees, Grass and One year maintenance.

Management fee

The estimate for underground was made without structural engineering prints, purpose for that is we don’t want to spend thousands on a print to have the city decide against it.

Update to project;

Had meeting with interested party today; the cost of infrastructure is a little pricey for them.

Quick view of numbers;

Selling price 125k maybe 130k, 22 units, 1400 Sq ft

Cost of underground work currently 800k

To make the numbers work the infrastructure needs to be paid for by TIFF money and or other public monies

Tiff is only willing to put out 10k per or 30k for triplex

There issue is basically the city would have to spend more then what they perceive there ROI, yes property taxes, which the schools will receive most of, improving the surrounding neighborhood and the ability to control what is built there. Not enough for them.

Need help in figuring out how to raising public monies for infrastructure work, city is willing to use some TIFF money but not enough to make project work.

Update on “Professional renter” situation;

I took all of yours advice and hired an attorney, went to court, which took forever to get to, had a trial for Judgment, The tenet decided not to show and have his state appointed FREE of charge attorney tell the Judge a continues is need do to an emergency dental issue, thankfully the judge did not fall for that.

Received full judgment and a two day eviction notice by the court, By By looser

Important lesson learned for all, if you didn’t know all ready;

He was working with other tenet we are having evicted in same building; they planned all kinds of nasty things for us. He had planned on moving into their apartment the day of eviction, the law / rules say you are having them evicted from your apartment not the building, if the evicted tenet moves into another apartment in the same building you have to start the eviction process all over again. Yep isn’t that nice.

Well, we were prepared for that, had attorney write up a Non-trespass order, asked deputy’s to serve him, wish I had a camera to take a pic of his face.

Not only had the eviction, now he can’t trespass or I’ll have him arrested.

Will post eviction story and lessons on current eviction, wow some of these people have no shame.

 Karen;

I agree with your thoughts, RE: bedrooms next to the living space, would putting two garages next to each other then having the third by it self look out of balance to you.

Mike