All Forum Posts by: Rick Bradd

K. Marie Poe Bill Gulley

This got a little more complicated after we called the assessor's office and now I need to do some more work, I am hoping you may be able to offer some guidance, I was unable to find a previous post with similar advise. The assessor was very helpful, so helpful he called building safety for us on his own.

The addition was never permitted, after purchase with the disclosed addition my wife hired a contractor specifically to bring the addition up to code, and also replace all the windows, add a new electrical panel, insulate and update a bathroom. Permits were pulled for all of the work, except for the addition. Since it was listed in the scope of work, and she saw the permits for the windows, plumbing etc. we "assumed" we were ok. This oversight was our fault.

Turns out the permit was never pulled for the actual addition, but they took it down to the studs, had the footings inspected and signed off on, redid the wiring, and closed everything up.

So, now we really want to fix this, get it legal and then sell the property, I have my eye on another property I want.

Can you tell me where to start? I am thinking we need plans drawn up by an architect, then an inspection? Will the inspector need to open the walls?

Thank you in advance.
Rick

Thanks Kristine,
I will call them in the morning, I was hoping it was going to be a one stop and done procedure, and I have a free free day tomorrow.

Oh we'll, thanks again!
Rick

An error, or unpermitted addition....

Both actually, we bought the house with a disclosed, but unpermited 40 sq ft addition to the master suite. We pulled permits and brought it up to code. The permits were signed off on and filled, no problem. But the records were not updated, plus the house has had 4 bedrooms since the day it was built in1964.

I did not know I could sketch a floor plan and submit it, that's kind of scary actually, but hey, I think that is the best I could hope for.

Now where are my crayons.....

Thanks Bill, I appreciate your time and advise.
Rick

I am not sure how to phrase this question, the county record for a rental I am selling is incorrect, it does not have the correct square footage for a permitted addition, and the number of bedrooms is listed as three instead of four. I want the listing to capture the missing 40 square feet and the fourth bedroom so I am going to visit the county recorders office this week.

So, what do do I need to show the clerk at the records office? How do get the actual square footage and room count in the official records? Does anyone have any experience they can share with me? I would really like to do this in one trip if possible.

Thanks in advance for your consideration.
Rick

Congratulations Bill, I always look forward to your posts, responses and good old common sense with a touch of humor. Your experience and willingness to share make you a giant among men in my eyes, and I am sure I am not alone in that sentiment, we are all better off for listening to your sage advice.

Keep it up!
Rick

Congratulations Will.

Here is how I would think a fair division would be between Jon and John Doe. I would divide this up into 3 parts:
Investment Money
Wholesalers fee
Project mgmt

Since both are money partners in the deal putting in equal amounts.
$235,000.00 ea. both are splitting the Investment money category.

Jon found the deal and deserves to be paid for that.
I would say this was worth what a wholesaler would expect to be paid. ARV (700,000.00)*70% (490,000.00)- minus 200,000 repairs = 290,000.00 - sales price ( 270,000.00 ) = 20,000.00 to Jon.

Jon manages the project using his staff and deserves to be paid for his time and effort. Since his company is the effective GC Jon should get the normal GC override at a reasonable discount, since its to his advantage, say 10%. Rehab costs (200,000.00) *.10 = 20,000.00 to Jon.

At the end of the day, Jon and John's investment money will both work at the same cost, so a fair split would be 50/50. so the breakdown as I see it would be;

700,000.00 Sales price
70,000.00 Commissions, warranties, concessions of 10%
630,000.00 total

200,000.00 rehab costs
20,000.00 project mgmt fee ( Jon)
290,000.00 purchase price ( includes Jon's wholesaler fee )
Net 120,000 divided among investment money partners = 60,000 ea.

Jon gets
20,000 Wholesalers fee
20,000 Project mgmt fee
60,000

John Doe Gets
60,000

Now, if I were the one wearing Jon's hat I would probably try and negotiate a larger fee for the project mgmt. If I were wearing John Doe's hat I would be happy to negotiate as long as we put in spending benchmarks to keep the project on budget and time.

Disclaimer, this is how the business I am in breaks down C.O.S, I have little experience (yet) in making a living at real estate.

just my $.02

And it's for sale or lease!

Slightly off the topic about Detroit, but I just spent ten days there on business and if you enjoy looking at archetecture as much as I do then I suggest you find a way to visit. Classic craftsmanship, awesome facades and just incredible details. It's such a shame that so many of these classics are empty, or burned out. Granted I was in the downtown area only but I love that part of the city. Especially the Wayne County building on Congress and Woodward (close ) with the copper chariots and tower.

I have been to Paris Fr. And still say Detroit is the second place trophy winner.

Ok, back on topic.........

Congratulations gentlemen, I appreciate the insight both of you share..

Actually, should be saying congratulations BP'ers, these guys are so helpful and willing to share we are the ones benefiting, good news indeed.
Rick