All Forum Posts by: Peter Mckernan

Hiring a GC unless you are going to eventually get your GC license is a time and money saver. A solid GC that will be at the project every day and handling any unforeseen issues that were not seen on purchase, managing the guys and getting permits done will save you so much time and money. I know that this is tough to think about when the GC could be taken 15-30% roughly of the project cost for their own business, but that is a number that you need to build into your numbers when running the analysis on a property. I would hire one and do for my flips. 

An example of this... I was remodeling a place (primary) almost three years ago. I was using a licensed contractor. We did not pull permits on the remodel and a neighbor called the city on us. We got red tagged and the projected stopped. The contractor that day went to the city and sat for SEVEN hours to get permits pulled while getting everything completed with the city to start the process again. He also met the inspector each time they came out and also made sure that the project did not get significantly delayed (before permits 6 weeks projected finish, after permits only took 2 extra weeks).

You can take it out as wear and tear for the property since it was still on the property and the tenants caused the damage. 

 I agree with James, but J Scott has some good flipping books you can read while getting flips done. 

A couple of things: I would like to know the laws of your state and local jurisdictions regarding tenant and landlord rights. The second thing is to get a property management software for all communications, bill pay, and rent income. I would also have close connections with a PM in the area or a realtor who is familiar with these situations (PM, tenants, their own rentals) to lean on in times of questions/concerns. 

Sounds like you are jumping into this with some construction experience already, I will keep on that path and buy something as a house hack @Nicholas L. said 

I would only really do a long-term hold with someone on the minority side of the equity split. This would be I own 70%, you own 30%, and I will make the key decisions and manage the property etc. I have had 50/50 JV deals with people (one I just sold last year that was held for 10 years). It was tough since I was doing all the work, worked through an insurance flood and all and the person still could tell me to sell or not sell, and got the same equity position as me.

After that experience, only short-term deals on flips (of course, have it padded if the market turns and hold becomes the only option). As for knowing what you are getting into something for longer years (i.e. LTR) then I would structure it as an equity play towards you versus being split if you are doing all the work. Clearly define the roles for you both in the OA as well.  

 I'm not sure; I've never heard of MV Realty. What is the cloud on the title, and for sure, most title companies and or mortgage companies will not fund a deal if there is something on the title that is possibly going to have repercussions to the mortgagor or title company.  

I would not use a PM company for the rehab process, they typically are good for light rehabs or sometimes do not even have the capacity for that type of work. I would search for a realtor that has a lot of properties sold under their belt and ask them for a hand for this type of thing.  

No, this is not, unless you need the money back quickly.. It is a good option to keep your money flowing in, and then get some capital out (down payment they pay you) to pay some other stuff. 

This was posted by something else (the same thing basically). It really comes down to what the contract says and what you signed too.