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All Forum Posts by: Alexander Parunin

Alexander Parunin has started 2 posts and replied 15 times.

Post: Avoiding city (building) inspectors and code enforcement

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10
Quote from @James Hamling:
Quote from @Cody L.:

@Bruce Woodruff

1) I don't invest in San Diego (because I'm not a crazy person).  I have a home here though (born and raised).  A nice fat $5m home in Mission Hills I'm happy to say. 

2) I'm not 30 but aww sucks that was a nice complement.  And yes, I bought my first 8 unit in 2007 using savings from my 9-5 as a down payment.  I now have almost 2,000 units and about $1.8m in monthly rent roll without taking on any outside investors.   So yeah, you should 'listen to this guy' (insert emoji here).

3) Correct, I don't pull a permit for anything "unless I have to".   Meaning if I'm adding a ceiling fan to a unit that has no ceiling lights (so we have to add a switch, run some cable), or swapping out a sink/vanity, or putting in new double pane windows to replace old crappy ones --- all of which need a permit -- No, I don't pull a permit.

But hey, congrats and good on you for being so obedient to the state.  We need people like you.

Sadly though, your government buddy Rick won't to crap to me as I don't do any work in San Diego.  So you and Rick can go threaten someone else.


So since we want to measure wang's here and get all aggressive on this topic, I will simply layout how this works, from someone who has been a part of doing thousands of flips across a multitude of states, countless municipalities, and operated fund level portfolios. 

The Building Code is written as a portion of law under Public Health and Safety. 

That means, when a person for the operation of real estate business knowingly, willingly and wantingly directs or operates modifications to a residential structure via VIOLATION of that building code, AND SOMETHING HAPPENS, be it 2 weeks, 2 years or 2 decades later, you my friend have now made yourself liable, not only civilly but also criminally if such applies. 

For example, say you ignore electrical code because you simply don't want to follow it. And sell that property, with your handyman wired ceiling fan. And that Handyman is "ok", so he almost does things correctly. So it's 5yrs later, and that "almost correct" wiring comes loose at the ceiling can due to vibration and now has an arch. That given how he wired to breaker, does not trip. And as he is "almost right" the can is in a manner that it starts an attic fire. At night.     Next morning as fire dept has put out the flames there pulling the 2 bodies from the rubble who sucumbed to smoke inhalation.    The fire investigators rapidly locate source of fire, and also the causality. Doing there investigation find it's thanks to NON permitted NON inspected items. Come to find current home owner did NOT do that, but they trace it right back to YOU. 

Next thing they find your with a whole bunch of $ and assets. Family of course get's attorneys, there devastated, people died. Those attorneys work with officials and next thing your getting notice of surprise inspections at a few sites, than a few more, and more and more because as they pull this thread they find more and more of the same. This accelerates, but you hear nothing so you blow em off as "what ever". 

And then.... It's a year or two later and out of the blue a knock on the door, but a half dozen officers with shinny new bracelets for you. You find yourself sitting on a few hundred charges of public endangerment. And the suites start hitting, wrongful death, etc etc.. Insurance carriers start canceling policy after policy, lenders start calling notes due. 

THAT'S REALITY. 

Your bragging how your playing Russian Roulette, and have not as of yet found a bullet in the chamber. YET.... When a person does such foolish things they forget, your gambling EVERYTHING, that NOTHING will EVER happen to blow open the door of accountability. 

Jordan Belfort used to brag of the same once upon a time just as you are here. There is a long list of those who got away with it for a long time, made ton's of money, until they didn't get away with it, and the whole house of cards came tumbling down. 

It's insanity to risk everything, on perpetual state of never getting caught. It's simple facts, un-licensed persons doing un-licensed work will NOT do things to code, it's exactly why they are (a) unlicensed or (b) doing unlicensed work.    Permits PROTECT those doing the work, it transfers liability unto those who inspected and passed said work. That's why no legitimate licensed person will do un-licensed work, there not dumb enough to eat that liability. 

And if you think your installers are "oh so dedicated" to you that they won't talk, lol, yeah just have 1 bad event happen that pulls that thread and find out just how fast they flip on you, throw ya under the bus, and clap along singing a song as they drive over you with it. Nobody is going to go to jail for you. 

Every year as a Building Contractor we would have various meet's where they would detail the persons they nailed in such cases. I remember at start of lead safe certification how many got arrogant and said how dumb it all was and there not doing that stupidity, and authorities warned there would be examples made. Next year, it was a list of those nailed and sued/fined into oblivion. 

It's the downfall of hubris. Every time your doing this your only increasing your odd's of a calamity, and the eventual downfall. proving a pattern of intent and habitual actions. 

Again, Building Code is under Public health and Safety, that means violation of such is legally a violation of Public Safety. Go ahead, be that guy, enjoy it while you can, don't say you weren't warned.    

 5-7 million secondary market homes being sold every year in US. Around 8% on average are flips which make it on average 500k home sales.

Can you bring example of such case(s) anywhere in US that received public attention (was on news)?

Post: Avoiding city (building) inspectors and code enforcement

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10
Quote from @Patricia Steiner:

First, know the code.  It's posted online under Construction Services for the municipality.  What you don't know - like the dumpster thing - not only gets you red tagged but guess what else?  Placed on the radar.  That code enforcement guy - he'll be back.  He knows you're rehabbing...

Second, don't tick off the neighbors.  Make sure that your property is pristine on the exterior - no trash, no parking on the grass, no foul language, no 'guys' just hanging, and no dang dumpster.  Know why?  It's not who you see but who sees you...and once the neighbors see you and you have offended them, you're on the radar - yet again.  They'll keep reporting you and reporting you and reporting you.  And, that leads you to being the favorite target of code enforcement.  See how this works.

Permit, don't permit...a little story to tell you.  I had a client who decided not to pull a permit to rewire a MF property to avoid the $40k cost.  No, why do that when you can hire an active meth user who has never held an electrician's license to do it for $8k?  Even if you can forget that if the place burns down with tenants in it, you - yes, you - as the owner - are going to prison for a lifetime - yeah, let that go.  Consider the work ethic of a drug user...they come, they go.  What price can you put on your job being held hostage by a guy you can't find.  Can't permit it once it's started - no one will touch it.  Get another guy into finish it - not going to find that fool.  Sometimes what you think is saving you money is actually costing you a whole lot more than if you had done it right the first time.

Reputation.  Be the real deal.  Those who want 'to appear to be' are only fooling themselves. 

And, don't forget - you were outed by a dumpster.  


 Patricia, thanks for your exhaustive explanation.

So we have a choice to hire GC to pull permits for us or pull permit as homeowner/builder correct?

If we go with second choice, can we still use our contractors and hire GC only for consulting purposes to prepare for inspection/reinspection?

Post: Avoiding city (building) inspectors and code enforcement

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10
Quote from @Michael S.:

@Alexander Parunin - in the city of Huntsville proper, if you perform what is deemed to be "substantial unpermitted work" on a house, it is technically illegal to sell the property for the first year after the work was performed.  Granted, this would require the buyer to determine permits weren't pulled and file a lawsuit;  but you would lose the suit by default.  How do I know this?  I pulled a permit myself in 2018 for an addition to my house;  the inspectors office told me directly that either unpermitted work, and/or work that the final inspection was never signed off on, would result in the owner not being able to legally sell the property for one year after the work was deemed to have been completed.  


 So we have a choice to hire GC to pull permits for us or pull permit as homeowner/builder correct?

If we go with second choice, can we still use our contractors and hire GC only for consulting purposes to prepare for inspection/reinspection?

Post: Avoiding city (building) inspectors and code enforcement

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10
Quote from @Scott Mac:

Are asking for advise on how to break the law (???)


 Absolutely not, just don't want to attract attention to my projects. That is it. More like tax avoiding strategies if it makes sense

Post: Avoiding city (building) inspectors and code enforcement

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10
Quote from @Matt Devincenzo:

Pull permits for any work requiring one...


Great strategy! Thanks a lot!

Post: Avoiding city (building) inspectors and code enforcement

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10
Quote from @Carlos Ptriawan:

is this OO or primary ?


 Investment flip

Post: Avoiding city (building) inspectors and code enforcement

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10

We just recently started house renovation and got red tagged by the city inspector. I guess he saw dumpster while driving around or maybe neighbors complained. So we learned never leave dumpster in city limits.

  • Could you share your strategies on how to avoid city inspections/code enforcement on extensive renovations?

Much appreciated

Post: Wholesaler in Little Rock Metro Area

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10
Quote from @Hadar Orkibi:

PM me and i can refer you @Zul Budhwani



Are you still wholesaling in Little Rock area?



Are you still wholesaling in Little Rock area?

Post: Wholesaler in little rock?

Alexander ParuninPosted
  • Real Estate Investor
  • Las Vegas, NV
  • Posts 15
  • Votes 10
Quote from @Eric Metz:

There are a handful of us that aren't too hard to find if you're serious.







Are you still wholesaling in Little Rock area?