All Forum Posts by: Grant Smith

I am currently in the middle of rehabbing my first property as well. I worked in the commercial construction industry and kinda knew the ends and outs of dealing with subs and what was needed but since I was working a full time job 45 min the actual project site, I knew I physically wouldnt have the time or freedom to just drop in whenever and check on subs and such daily. I ended up going with a GC which has helped me keep my mind at ease when I cant be there. 

I have since quit my full time job and work part time in residential construction with plans to aquire my own licences to pull permits and such. I still have the GC on because now he is almost acting as a paid mentor. I have more time to hang out at the house, see it get built and join in on the hard work on MY project. I dont plan to use one on my next flip purchases, but the on-the-job training i'm getting now, along with some tips and tricks from an experienced contractor, is invaluable to my future and the money i will save. 

I'd say if you have the time to be there everyday ( not all day but definitely checking in) maybe making some hardware and material runs so guys can keep working, and you have basic knowledge of residential construction where you kinda understand the basic timeline and task are needed for a certain project to be completed. You should have no problem being your own GC. and like @Ryan Shaw

 said, Be slow to hire and quick to fire.

http://www.meetup.com/va-preia/events/223615117/ Sounds like you miss this one by a day but if you can stay for the morning, Alan is a great speaker and always a fun meetup with great networking.

Thank @Joe Bertolino

 I have since talked with my contractor and he has assured me of what you have said but also said that since the damage looks like it will be a relatively easy fix with just some drywall and insulation replacement, he will eat the charges and not worry about insurance which will save me time i think as well.

So I have a question to find out my options and vent since I can't get a hold of my contractor at the moment. I am in the process of renovating a house in Hampton, VA and we are adding a dormer to the second floor roof and my contractor decided to open the roof and frame out the dormer this week. They didn't get the walls and roof completely framed back in and so they tapped the ceiling to try and keep the house water tight and prevent rain inside. Well we had a storm today and I came by after to check and quickly discovered water had leaked inside the back exterior wall running down to the first floor where there is a lot of water in the kitchen and bathroom and bedroom. I have a gc on the job and he is also the framing contractor. My question is. Whose at fault and whose Wallet pays for the obvious water damage repair that will be needed to be done now.(new insulation, repair plaster/drywall. Remove water from crawl space ) Thanks in advance

Look into FHA 203k loans.

There is tons of literature on this site about them but basically with a few added hoops to jump thru, you could get the purchase + reno cost rolled into 1 loan with you only coming out 3.5% + whatever % of closing cost you can negotiate. 

A summary of how I understand the process is that you will have an FHA approved appraiser come out and appraise current market and future based on repairs. You will have 3( i believe) contractors come out to bid the work(class A licensed, insured, the works) and once contractor is selected, they will add the renovations and purchased price up to be your total loan amount which will need to be under or at your approved about. (280k)

There are two different types of 203k loans with different repair cost limits and extra steps to take which are basically based on if their are any structural repairs needed or just cosmetic. (obviously cosmetic is easier then structural). They will then hold money for repairs and disperse needed amounts as work is completed.

Hope this helps

In my experience, it is best to have a contractor pull the permits. Most the time this isn't even an itemized task that a dollar amount is put too. Just cost of doing business on the contractors end. 

But more importantly, cities and municipalities are a funny thing and a place where "its all about who you know" couldn't be more true. A good contractor that's active in your area will have or should have some kind of pull or advantage when pulling permits. If they have friends in the department, the paper work seems to be processed way faster than some John Doe walking in to get a permit. 

To get the best of both worlds, talk with your contractor and see if he would mind you tagging along up to city hall and meet some of his friends and see how the process works. That way, a couple deals down the road when you are GCing your own projects, you have the experience to know what your doing and the contacts to help get it done ASAP.

I am currently in the process of a flip in Hampton, VA about 5 minutes off i-64 which may or may not be your route thru VA to Georgia. Strawberries are in season and so are the blue crabs. Nothing compliments a good road trip like some great food.

I started at 23. Bought my first primary residence and refinanced 10 months later. After it appraised for twice what I bought it for, I did a cash-out refi to a 75% LTV and took out 37k after closing cost. Used that to buy my first SFH rental which is rented out cash flowing at about $350/ month after expenses. The rest of the refi money I have since used to purchase and help fund my first fix and flip SFH which is currently being rehabbed.

Take some time to sit down and figure out what your good at. Like @J Scott has said, focus on the stuff that makes you money and do that.(err or along those lines.) Figure out your strenghs and start surrounding yourself with experts in your weakness's.

Best of luck @Ethan S.

When I close on a property, my realtor and I always do a final walkthrough with the house and make sure nothing has changed since time of inspection. If in fact something significant had change that would break a deal, I would then be able to pull out of contract receiving back my earnest money or renegotiate an offer that the bank can either accept or deny. Don't quote me but I think this is just standard procedure with your basic REIN contract. This is in VA btw.

Thanks for the insight @Account Closed  . Exactly what I was looking for, a chance to see it from a different angle. 

And foolishly, now that all the 'related discussions' have come up at the bottom of my page, I see there is an abundance of discussions on this topic already.

This post can be taken down.