All Forum Posts by: Mohammed Washim

Investment Info:

Townhouse buy & hold investment in Atlanta.

Purchase price: $40,000
Cash invested: $35,000

2 bed 2.5 baths townhouse nearby airport

What made you interested in investing in this type of deal?

pricing and location

How did you find this deal and how did you negotiate it?

found it on zillow and spoke directly with listing agent to make deal

How did you finance this deal?

cash offer

How did you add value to the deal?

renovations

What was the outcome?

currently being leased to tenant for $1k/monthly

Lessons learned? Challenges?

where to start... contractor walked out on project, had to move in to property to cut costs on renovations, lawsuit against contractor, and many more

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did this all on my own without any help.

How does A church rental assistance program work? I'm about to lease my first rental and the tenant's church says they will cover $675 towards through their 501(c) (from my understanding, I don't think it'll be actual money but it'll be a write-off when I do my taxes next year)... and the tenant will pay $775... how does a program like this work? Does this mean, from my understanding, that I'll never see actually see the $675 or will the church actually pay me? I'm completely new to this situation, especially with it being my first rental... any help or guidance will be greatly appreciated, thank you in advance.

Investment Info:

Single-family residence buy & hold investment in Atlanta.

Purchase price: $40,298
Cash invested: $20,149

2 bedroom, 2.5 baths, 1184 sq ft townhouse

What made you interested in investing in this type of deal?

proximity to airport and property near airport will go up with all the airport construction going on.

How did you find this deal and how did you negotiate it?

Found it through zillow, trulia, redfin, relator.com and other apps

How did you finance this deal?

cash offer with partner

How did you add value to the deal?

split 50/50 with partner and found the contractor to do all renovations

What was the outcome?

an up to date townhouse in a quiet subdivision near airport.

Lessons learned? Challenges?

General contractor left project midway... and have had to deal with all the challenges you can imagine with getting the property fixed up after that and fling suit against the contractor and all its legal implications involved as well

What's the typical tone to pass judgment on a small claims court if your contractor failed to meet his end of the contract and it's been many months without any work getting done? If I take him to court, how can I recoup the money that I paid him to finish the renovations and never did?

After listening to the BP podcasts, I finally jumped in to purchase my first property with a partner from another state. I found a contractor through a friend's reference and went straight with him. That was mistake number #1, so ALWAYS GET MULTIPLE BIDS.

We wrote up a contract and scope of work and began and for the first few weeks, things were going smoothly then he hits me with a change order 3 weeks in, which I hear is very typical, so I didn't think much of it and gave him the money for the pertinent items on the change order. And that's when work started showing down and mind you that were agreed to a month for renovation with 50% upfront and remainder at the end. HOWEVER, as we were getting towards the end of the month, he ran out of funds and because I am an dummy, I paid him an additional payment towards the ladder half of the contract so we can stick to the timeline of a month for turnover. MISTAKE #2, STICK TO THE CONTRACT AGREEMENT, it's in place to protect you from the situation I will mention in the next paragraph.

Now, we're in mid December and im still sitting on exposed exterior and no kitchen, and a downstairs bathroom. MISTAKE #3, DON'T BE AFRAID TO LET GO OF CONTRACTOR ON FIRST SIGN OF RED FLAG, i.e. they coming to you for more money, or work showing down. So, BP family, should I continue to work with him to finish out the inside stuff or cut my losses and get a new contractor and go onto taking the current guy to court to sue him to recoup my money?

thank you, I was trying to avoid that route but I'll have no choice if the work doesn't get done.

I signed a contract with a GC  dated 09/19/2019 to start work on a project and deadline to be completed by 10/23/2019. he missed this deadline, asked for an extension until end of the month, gave it to him. Bu, now i's been 3 weeks later and He's still not done with work on the inside of the house nor the exterior, my concern is that I have already given him money and am too invested at the moment, gave upwards of 80 percent of total contract agreement because he requested two additional payment to be able to finish at the end of October which he did not. and here we are, with the house incomplete and I'm forced to live in unlivable conditions because because of his affirmation, I terminated my lease at the end of October and have been forced to live in unlivable conditions at my home, separated from family because I could not have them living with me in these horrendous conditions. does anyone have any advice to ensure that he completes everything from the original contract or how do I enforce that he is held liable for expenses for finding another contractor and expenses that I have incurred because of his delay in completion the project within the deadline. Can anyone provide me with a legally binding template so I cover my losses and make him pay for all hardship and expenses if he doesn't complete by the 27th of November, I gave him a final complaint letter with a deadline to complete the project, both interior and exterior work. I would like to know how to legally go about recouping my losses from the GC if he doesn't stick to this deadline of the 27th? thank you, BP.

you're truly an inspiration for someone that's new to REI in the Atlanta markets! congrats to you, sir!