All Forum Posts by: Peter Mckernan

I would not spend the money on this for something you will be renting out.. If you are going to sell it later to capture the most money you can that is when you want to smooth coat/retexture. 

If you plan to call the city and do the whole permit process on the other stuff there is a high likelihood they call you out on the unpermitted room. I would get a quote from your contractor to see how much it would be to permit the room before calling in the city, or start the work on everything else. I would add that into your budget. The worst case would be you having a budget for 50K lets say and the inspector calls you out for the room that is in question and that is an extra 30K to do... You are now in a tight spot to finish it all. Quote from contractor, see how much it is and if you can afford it to convert to a permitted room and do the other remodel items in question. 

I would get a GC, there are so many times where if I did the deal and sub it out something would go wrong or I would really just lose the profit because it took too long to rehab. There are life lessons on taking the more costly road, learning and then down the road GCing it yourself. 

Yes these forms should or CAR forms should. If not I would do an addendum to the lease signed by all parties to confirm the rules are stated. Then when they hit the gate again you can reference what they signed and hold them liable. 

J Scott has a good one, and I would really get out to meetups that are local to your area... Also, I would be getting in touch with people currently doing flips in your area (by meetups) and going to visit their projects etc. 

If you do not have experience at all with fix and flip and this is your very first one. I would suggest you partner with someone that has done them before to go through the first couple with you. If you have been working under someone and have a good concert on what it takes, then I would think about getting a least that mentor that you have been working under give you pointers along the way. 

Best loan, HML, and best practice, buy the house at the best price verse the comps.

Years ago I realized tenants will ask for many things that are really luxuries, like high end appliances etc. I know this person is a different case due to some bad situations in life this still applies with him. Make sure that you do not let that tenant push you around, and stand firm with you being backed by the law. The last thing as everyone else said, higher a PM and get yourself out of direct communication with this person. 

No form..

1. Get a referral

1a. if no referral, use a third party to source, task rabbit, thumbtack, yelp 

2. Once you find a few, check state website for license info
3. Get photos of current past jobs
4. Go to a site visit if working on a project to check work
5. Verify from reviews online
6. If you really want to do a deeper check, get references to call and get their take on the workmanship

***if this person does not work, cut them quickly, and move on.. So many people just leave the contractor to do their thing and do not cut ties quickly when they are delaying projects or not doing the right work..***  

There are third party softwares you can use, property meld that is build into PM software. This is only scheduling, and then you have to verify what the problem is, what needs to be done, is it a certain type of trade and all.. Most of these days even with advances in technology there are still a lot things to weed through to make sure you can get the job done for the repair/items that need to be fixed. Manage the project and all. I would really make sure you are a pretty close second call with ease of handling these issues as they arise even with a company you hire to be put in place for repair requests and all. 

So there is some deeper looks to this.. Some options..

There are some sellers that do not want to go to market but want market money. That is where you say, sorry we cannot help you or you need to list on the market as-is.. That is where most the eyes are for people looking to still get market pricing for their home. The example would be really nice properties no pool in the market this property is in is selling for $575,000 and they want $500,000 or $515,000.. This is an as-is market example.. Someone will buy this one as a primary. This is not an option for wholesale or a person to flip. 

Now, if the person says, hey let's sell for $450,000 that is becoming a deal. This is where you get better odds of getting to wholesale to a person flipping. If you are bringing a wholesaler to partner with and get it offloaded, not a deal due to the wholesaler waiting their fee to and then that person most likely flipping it will need their margins too. 

I would do a couple things, find a contractor, or sub out the stuff at a lower price.. See if the margins are there. If you are going to do the flip I would also align with an investor friendly agent as Joey stated.. If you are going to give them the volume, then they might give a some concessions on the sale. The other things I would look at is, do these houses need 50-70K worth or work, or can you get away with 40K and make it a deal?