All Forum Posts by: Curtis J.

@Jim Brozny Do not sign anything with the contractor yet.   There are a ton of contractors who prey on insurance claims and make huge profits while you suffer with crappy work.  I'm biased towards this since I live in the SW where contractors constantly rip off unsespecting folks when hail storms roll in.  Due to seeing these guys rip people off all the time I have a deep down hatred for them that is rivaled by little else.  

I'm a licensced contractor in the state of NM, so my experience is here.  Although I'd assume its not much different there.

An insurance claim will normally cover damage minus depreciation, normally.  Meaning 10k damage will get you an 8k check minus your deductable, assuming 20% depreciation.  After all is fixed and you show a bill fo 10k you get the remaining 2k.

The adjustment should be a line item adjustment showing, material, labor, profit, and overhead.  Make sure what the contractor is doing matches this.  Do not settle for sub par material, this is where many will rip you off.  If the adjustment state cement siding, put cement siding.  If you have questions about a substitute contact your insurance company.  If they pay for x and you put b up they may not cover it.  

One thing the scammers in my AO will do is have you sign a contract before the adjustment is done.  This contract states that the company will do the work if the adjustment is approved, and enough for them to make a ton of money.  You sign this and then on the back in grey, gross example on my part, is a clause that you will give them 10-20% of your total insurance check if you back out.

One thing you may be able to do, depending on how big the claim is, is get them to do some other work around the property.  For instance when replacing a roof, it wouldn't be uncommen to get a contractor to throw in some free stucco repair or other misc repairs that are wear and tear items.  It never hurts to ask.   

Be sure and get references, from people who have experience.  The elderly neighbor who he called mam, but has no idea what a good contractor does is a crappy reference.  Look at their social media, some of them are dumb enough to have their employees leave reviews, avoid them too.

I hope this was more informative and less of a rant.  We've had a ton of contractors screwing people overe lately and it irks me to none other.

Good Morning, BP!

I'm looking at finding the best way to go forward from here. The situation is a little weird, at least to me.

We have a 4 person LLC that currently holds 2 mobile units on 4 developed lots total with no current debt. We live in one and rent the other for $900 a month with total cash flow of around $650. Value with mobiles around 100k-150k depending on comps you look at. For now, we plan on keeping the 2 mobile units and will assume for the worst case we will live in one of the two indefinitely.

I’m a licensed general contractor and my wife is a designer, modular dealer, and real estate agent.

We would like to place 2 duplexes, 4 units' total on the 2 empty lots. We have the LLC's current holdings, stated above, and once our old residence sells around 130k cash.

The 2 duplexes will cost around 300k to complete, with my wife and I discounting the units to below cost. The estimated value once completed for the duplexes will be in the 450k range with the provided land from the LLC.

The LLC has no credit and all shareholders in the LLC are self-employed. I would like to keep all costs as low as possible, of course. Would it be wise to fund the first duplex, with said 130k, and then get a loan? Or to get a construction loan for both and then a note for all 4?

Total income from all 5 units, 4 duplexes and a mobile, will be $5300 with utilities paid by tenant on the duplexes and LLC on mobile. Taxes and insurance will run approx. $550 a month.

I have run more financials on the property but I’m trying to keep this under a novels lengh.

As already mentioned become a pro at Lowes and Home Depot.  Lowes is minimum $1500, and called the QSP, and Home Depot is a little more.  Not sure on Home Depot since the one here is horrible and has never returned a bid.   I average about 18% off using the Pro bid program.

Some contractors do a lot of reno on stuff that is like new or in great shape and will give or sell it at a cheap discount.  Or the occasional wife changed her mind and its been used so we can't return it.

Get in good with the people at the pro desk.  I get one of the first shots on their clearance items which can range from cabinets, fixtures, light bulbs and all sorts of stuff.  It rarely aligns with my needs but when it does it saves big time. 

Interior designer wife said to put bigger shudders, paint facia, soffit, and shudders to match the grout of the brick.   Planter boxes below the window or set on the ground, and maybe tree or shrubbery centered between the windows away from the house.

@Mark Holencik  I think its really locatation dependent.  Most of the inspectors I've dealt with know their ****.  They may not be able to get the results building it, but they do great QC.  Most were in the trades before they switched to gov jobs.   Around here they will absolutely jump on the roof and if he's an A hole he'll look for any reason to make you tear it down.  

And by location I contract in several counties under some back woods dudes sometimes.  Some of the guys who know me won't even drive by, in other locations I better not do jack **** until the decking inspection is done.

Do you know any contractors in state that can give you advice?   Your state laws will vary from others.

No way would I pull a permit for someone elses work, not as the owner, and heck no as a contractor.

He either knew he didn't have a licensce or he is way to absent minded to own a business.   Likely his insurance is worthless without that licensce.  Mine is, as is my bond.

The permit and licensce are a way to help you not the contractor.  The permit showes that it was inspected and appeared properly done, the licensce shows that whoever you hired is supposed to know what they are doing.   You paid for a licensce and inspections, make him provide them.

General Contractor here.  I build new houses and rarely do renovations so decipher my answers with that in mind.  

1.  My builder's risk only covers new construction.  I have a different insurance we have to have on existing structures I believe it is one of my liablility, but not sure at this hour (for remodels).  It is very rare that I do remodels though.   Additions, I believe it only covers the addition, the rest is up to the homeowner if IRC.

2.  Builders risk only covers my estimated costs, not the market value of the finished product.  

My workmans comp ins requires that I'm on any subs insurance to make sure that I'm notified of any change in the policy or if its dropped.  If I don't have proof of this when I'm audited by my work comp agent I pay on all the money paid out to said business.

Your last paragraph I have no idea.  From state to state ins laws vary.

@ Yi Zhao  

Awesome, my mother used to sell tuquoise in SW NM.   She has some amazingly beautifull peices.   

It also says I signed my original post Reno_R.   When I created my account I though I would be capable of creating a new screen name so I put Reno_R and signed my post as that.  

Do revisions to your post after 15 minutes delete the whole post or add on to it?

@Lydia S.   Thank you!   

It's been pretty helpful so far.  But now im stuck in the "Tenant Applicants say the dumbest things" thread.   I'm gonna be here for a bit.