All Forum Posts by: Ron Ramsden

As you progress with painting walls, trim, ceilings in the future pick a color for each and stick to it thru all your units as we found when someone moves out we can just paint what is needed (sometimes just one wall in a room) and their is never any guessing on colors and sheens. Our go to paint the last few years has been Benjamin Moore Scuff X, hard as a rock and wears well

As a painting contractor you will have to paint the entire ceiling especially if it has not been painted in the last 6 months or so with quality paint.  Spend a few extra dollars on a better or best ceiling paint (flat) for best touchup and less flashing

As a contractor and an investor I feel you pain but for as a contractor our labor cost has gone thru the roof if we can find the help.  Just this week our unemployment rate went from 16.75 per $100 from 6.75.

Our paint has had 3 increases this year alone.   
and remember we do not complain when our house go up in price

I am a past rental owner in Lawrence for many years.  Great opportunities in the past but the prices have increased so purchasing might make sense in one of the neighboring towns. Methuen, Haverhill, dracut, Lowell

Hello All,

I am back in the investing game and would happy to attend a virtual but not in person at the current moment

Background:  I was an investor earlier in my life and just sold my painting company.  I found a 4 family that is currently vacant and needs extensive work which i could do most as I have the time and funds.  I asked for advice from My financial planner who i have known for years and he would be interested in investing into it as well as a friend of his which would fund the purchase price.

I would like it to be a three way partnership as them funding the property and myself funding the same amount in the renovation. My question would be how do I account for my labor as an investment?  If I fund the 150k cash out of pocket for the renovation in materials and work I can not perform (electrical/plumbing) How do I account for physical time and labor with this deal?

Thanks

A little background first.  I have been an investor/landlord many moons ago but wish I knew then what I know now.  I currently have a home and vacation home.  I am also a painting contractor with crews for the lat 19 years, so I do not mind getting my hands dirty.

Story :  One of the GC's I work for and have known for 19 years is retiring and liquidation one property a year.  Last year he sold a 2 family and paid a lot in taxes so his accountant suggested selling another this year and financing it.  We were on another subject and offered a four family to me with a downpayment and finance the rest.  The place is in good shape as I am not worried about the property or the tenants.

Question:  I am very interested in the property and when I ran this by my investment guy he mentioned he was interested and wanted to know if I wanted a silent partner who can assist with money.  He has been very successful financially and is well connected so this might open up future doors if it went down that path.  I have never had a partner on a real estate deal. ( I can swing the down payment and any other monies if needed my self).   The house will be around 500K,

Your input is valuable and requested.  

Thanks

Ron

Hello, sitting on the sidelines watching for a bit.  Just moved to Merrimac, MA from Methuen and it is good to see people from the area

After talking to many investors, homeowners and flippers as well as customers that I have serviced over the years I wanted to share a view from a contractor on some of the issues I have heard that were concerns.

First off I am an investor and contractor and  have been investing in multis for over 30 yrs (stared at 20 yrs old) with multis and a couple flips as well as a vacation home.  Some of the concerns and issues i have encountered and my two cents, whatever that is worth may assist with your dealings with the next contractor you encounter or need.

Preface is that we are in a dire need for skilled help and as the blue collar/white collar debate over college seems to escalate contractors will continue to have more work than they could possibly handle if they run a legitimate business.

1. Your buying a house or thinking of placing an offer but you need a contractor to give his/her opinion on it.  PAY THE MAN..  If you need a contractor's opinion or a write up or quote on a project pay them for their time.  They may credit it back to you if you hire them but the experience they bring to the table could be worth so much more.

2. Timing on work.. Plan ahead as long as you can.  Pease do not wait to call us the week or two before you need us. As for an example it is the beginning of May and we are currently scheduling for end of August and most times we can not "squeeze you in", everyone's project is important to them.

3. Deposits and contracts:  I can not speak for all contractors but if we do not have a signed contract and a modest $ 500 deposit we do not schedule the work.  This works both ways and is for the best of all properties. as for another example I just had a client discuss starting a project a few weeks ago and we talked about the date to start but he never sent in the deposit and contract so he as never placed on the schedule by my project manager.  Guess who called that day wondering when we would be arriving?

4. Be as specific as you can and demand the same from your contractor.  The more details the better.

5. If there are unknowns to work thru, discuss a time and material project.  Ask for actual copies of receipts from building supply houses and discuss head of time if you are paying them "time" to pick up the materials and what if any is the mark up of the supplies.  No surprise and being on the same page is best for all.  A great app for this is Hubdoc or group me for discussions as well as running basecamp for the projects.

6. Payments:  I have to be honest the clients that get top priority re ones I do not have to chase for money.  It is funny how a check that is mailed to me takes sometimes over a wee but my bills get to me in a day.

If your contractor is not utilizing contracts, payment plans, providing insurance binders ect maybe it is time to find a new contractor, but be nice to us we are a vanishing breed

a friend use to use this carrot to receive rents on time (the first):

1. tenant would have to deposit the rent by the first of the month on their own and if the first is a weekend or Saturday they had to make the arrangements so that was credit to the account by the first.  

2. If January thru November was on time being deposited then December was rent free.

It worked or him with about 10 townhouse condos