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All Forum Posts by: Martha Chavarria

Martha Chavarria has started 4 posts and replied 36 times.

Post: First Wholesale Deal...or almost?

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

For several months now, I have gained so much perspective in these forums and have been reading so much about some of the deals that have been in place. Many of which have been on the residential side.

So, having said that...this one's a bit of a twist, given that it's classified as a Condo, however this space can be utilized as an office facility. So, the comps we ran were of that of a residence. My team and I have put this deal together and wonder if the figures make sense given the type of property it is. Seller is motivated due to lapse of insurance coverage 3 days before Sandy hit. Very unfortunate, however, by selling this property, he's actually breaking even. Very close call given the circumstance. We have researched that there carriers who would insure the property for liability and flooding, if it should ever happen again.

Any thoughts on this deal? Given the history, conditions and figures, how attractive is this deal?
Thanks in advance!

Property Description:
Handicap accessible elevator to office space. Parking garage is included. Damaged by Hurricane Sandy and will be sold as is. No heavy construction required.

ARV: $480,000
Max % of ARV 70%
Repairs: $64,064
Closing Costs: 2% (covered by seller)
Holding Costs: $1500
no other expenses
Assignment fee: $15,000
Max Offer: $250,027
Profit: $229,973

Post: NY/ CT Investor Friendly Title Companies & Closing Attorneys

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

Alan Langer Alan, I'm big on researching...so when I come across something or at least someone that can help find that answer, I'll let you know and post it. In the meantime, where have you been looking?

Martha

Post: NY/ CT Investor Friendly Title Companies & Closing Attorneys

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

Alan Langer Hi Alan, isn't it interesting? I'm finding the same thing. I'm based in NY. Hopefully, someone will be able to let us know.

Best,
Martha

Post: Newbie From Phoenix AZ Here!

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

Phil Halleen Hi Phil! Welcome! It's great to see a fellow contractor from Brooklyn and from AZ! So beautiful over there...truly gorgeous! I'm a newbie as well. It's a great community here...you'll learn a lot and great people here to give great advice. Like you, the rehab and flipping I found attractive given the nature of our work. Looking forward to seeing more of your posts.

Martha Chavarria

Post: Offical intro, and first deal story!

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

Nick Leboeuf Hi Nick and welcome and congrats on your deal! This is a great community here. I used to go to school upstate. The winters were pretty crazy up there. Haven't been there since. Looking forward to hearing more of your journey...it's inspiring. :-)
Martha

Post: got a contractor

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

J Scott "Not to be trusted" I recall adding a few more words in addition to this. If I generalized it, (which was not the intent), I would've included myself, no? The truth of the matter is, there are many good, professional and hardworking contractors and some (sad to say) are not. Since I grew up being around them more than half my life, I've seen a lot.

Due to certain market conditions, cities, municipalities and counties operate differently from one another. Home improvement services in NYC is no exception. On daily basis, there are hundreds and thousands of work being done in all trades at the same time. From commercial to government (city and state) agencies, non-for-profits, schools and residential all in one city block. Of course, with these major groups, subgroups exist. But, I'll just concentrate on a small scale on the residential side.

Let's start with the consumer. Between 2009-2011, there were a flood of major complaints by consumers who retained contracting services in all boroughs and surrounding areas. These complaints varied greatly from over-extended jobs, not finishing on schedule (talking months here, not weeks), over budgeting unaccounted for materials, to name a few. Many operated without an agreement and proper documentation. So technically, they can run off from the job and face no liabilities. Leaving consumers handing over thousands of dollars spent on a job that wasn't completed. By that time, these consumers have exhausted their home improvement funds. The Dept. of Consumer Affairs had to step in and set forth regulations and monitor certain criteria. (I'll get back to that in a minute)

On the building manager's side, some have also made contribution to some of these circumstances. Like contractors and everybody else, many are good and some not. People from all over the world come to our city because of endless opportunities and rightfully so. To a certain degree, some of the building manager's have created a slight "bidding war" among contractors who are newer in town and desperate for work. This is unfortunate, because they can be taken advantage of. In addition to that, it has been known that, building managers expect to get paid a percentage under the table at the owner's expense, compromising the value of the job and a contribution to other contractors being undercut. Not good.

This is just a small part of what occurred, which is why the city set forth regulations and requirements for obtaining licenses. Some need two licenses, an HIC and HIS (Home Improvement Contractor/Salesperson). Pass a written exam, be fingerprinted and photographed. The system is linked with the NYPD to verify any criminal activity or fines that may hinder us getting those licenses or when something occurs on the job, they'll know whom they're coming after. :-) Every job must be bonded or in a Home Trust escrow through the Dept. of Consumer Affairs. This helps to protect the consumer, in case a contractor cannot for whatever reason finish the job, the city would send a replacement.

The city has done a great job in all of this. I just feel terrible that these practices were done that led to it. Unfortunately, it's a big city and things still do happen. We just have to be committed in operating and conducting business in an ethical manner and look out for each other. In fact, it’s essential to create a cluster of great partnerships among our industry of GC's. It can lead to great things. With that being said, I have wonderful GC friends outside of my immediate area and they are amazing with the work they do. I consider some of them, my mentors.

So before jumping ahead and not knowing and understand fully what transpired (and justifying that by making a statement that's "ridiculous", simply staying with asking curiosity questions, or ask me to share an experience, you'll find out more information and all the pieces put together would perhaps make sense.

Thanks,
M

Post: got a contractor

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

Steve Babiak Hi Steve, yes...that would be so ideal, not having a bidding war. It takes one, perhaps two projects for a contractor/investor relationship to develop a level of trust and solid communication. Yes...it also understood and taken into account and consideration that the investor does not own the property just yet. I'm pretty fortunate this is an area that works to my advantage when I wholesale a property. Keeping figures realistic and close as possible.
Shequann Burrwell I'll be happy to help you with any questions you have. If you are looking at a property and not certain of what to look for and if you have a cap on rahab. With some information from you, I can tell you if you're going overboard or not...hopefully not, which is what we all hope for. :-) That's if you ever need a second pair of eyes.

Best of luck and congrats!

Martha Chavarria

Post: got a contractor

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

Shequann Burrwell Hi Shequann, I've been on BP for a very short period of time, to really get a full understanding whether it is taken into account or not. I own a home improvement business and being a general contractor, my time and that of my team is extremely valuable. Being part of the remodeling industry, I tend to feel that if a contractor offers free estimates, perhaps they are going through a promotion or simply put, they are lacking jobs.

On a personal note, I do not favor contractors who do not charge for estimates as a normal practice because they are not adding true value to their field and not to be trusted. When things go wrong, other good and hardworking contractors, tend to get a bad reputation. Depending on the extent of the job, a good contractor may take from 1-3 hours to do full on-site assessment (perhaps more). They may even have to bring in their crew to give a more accurate assessment on other areas at the same time.

Our approach is when we go to do a site assessment, we want to be able to answer all necessary questions and keep you abreast of our systematic approach. When we present the estimate, (right then and there), you know exactly what work needs to be done and how long it's going to take. We are extremely specific on a breakdown of materials and the different elements of labor. Our client would know every phase of the job, without having to be at the site. When a client or investor feels the need to "manage" a contractor, chances are, they hired the wrong one. Just keeping it real.

When I charge for estimates, I do let the client know that it will be deducted on the contract. I just think it makes good business sense.

So, the question is...how do I "know" that I will be getting good, reliable and honest contractors? Let me recommend you to find several contractors, and I promise you when you talk to them over the phone, you'll know right away whether you want to meet them or not. Once you have determined your final 2-3 contractors, you can schedule them for on-site estimate.

When they arrive, your first impression is a gateway of how they will handle your property from there. It is to be known that there are hundreds and thousands of dollars at stake. Does anyone really want to take that kind of a risk for only a couple of hundred dollars?
Perhaps not.

The good news is...if you think about it, you only have to do this once. Once you know that you have a good and reliable contractor, you will want them for most, if not all your projects. A special relationship is therefore created. In consideration, they may offer discounting incentives on your future estimates.

Hope this helps to at least know what to look out for.
Best of luck!

Martha Chavarria

Post: New Member/invester from Montgomery County MD

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

Kelly Melrose Hi Kelly,
Welcome to the community. I agree with Ned. For the past 7 years, I lived in the MD and VA areas, and there are quite a number of opportunities there. In fact, I don't think I ever mentioned this here on BP, but my brother and I were very close in investing in Baltimore. There's great potential there, which is why we had eye on it. Other areas, we were looking at was Prince Georges County, and Anne Arundel.

Best of luck to you,
Martha C.

Post: Newbie from Queens, NY

Martha ChavarriaPosted
  • Investor
  • New York City Metro area, NY
  • Posts 39
  • Votes 12

Emmanuel Russell Emmanuel, didn't realize the you had a solid background you have. Very impressive! It's no wonder that you are naturally aligning yourself on the commercial side of REI. I understand where you are coming from, since I tend to align myself in rehabbing, due to owning a home improvement business myself. For the most part, wholesaling and lease options are what I have heard to be a great way to start especially if you are looking to gain capital more readily. Though I have been preparing to do more on the wholesale, I started this week to visit some areas. I must say, it is not as easy as most people would think. But, it does open up a lot of opportunity. By the way, love to connect with you further, love to understand more of what you do.

All the best,
Martha C