All Forum Posts by: Ryan Pemberton

I do some contractor work and always ask for materials plus 10% up front in writing. 

Coming from the other side of the coin, I've done jobs (and I do them well) where I fronted materials and got burned.   Once I was out the materials and time, I didn't have the money left to pursue a mechanic's lien because that is an expensive and timely process. With materials plus 10%, if I don't get paid in the end, at least I'm not out material money, just time. 

I'm getting away from doing that type of work and focusing on flipping myself now, but it's a road I've traveled.  Not all contractors are dirty crooks.  I've gotten several referrals from my work ethic and quality and I enjoy the work... But it's getting harder and harder to get material up front because of crooked contractors and skeptical investors.  

Ask your potential contractor for some referrals that he's not related to that took a chance with him. Talk to their past clients about their experience from start to finish.  Ask about the proposed time frame versus actual time frame, etc. 

There's always two sides to the coin and being a contractor is risky, hard, and the margins are slim.  I don't think it's unreasonable for a guy to ask for some money up front but be sure you vet the heck out of him. 

Welcome aboard.  This is a great place to make connections and gain knowledge.  It's hard to believe this much information is available free of charge!

My lord this is a fantastic and insightful thread.  Glad I clicked it!  Thanks, everyone!

Looks great!  Good luck on the rest of your journey...also, put Journey in the juke box.  It seems to be a universal bar prerequisite.

I don't have a lot of experience but I don't think there's enough meat on the bones of that deal. Wholesaling, in my experience, is only appealing to most buyers when the buying price is 70% of the ARV (minimum). It doesn't look like you're anywhere near that.

It would suck if you got stuck with it, couldn't rent it or flip it, and lost your tail because your exit strategies fell through.  That would leave a horrible taste in your mouth regarding real estate and nobody at BP wants to see that!

My advice:  Generate a ton of leads and go after the sure things with ferocity.  You'll find tons of deals with a lot of room to spare.

One thing I've seen a local apartment complex do that I hope to employ one day (once I make it to a buy and hold status), is provide a move in goody bag.  It's just left in the apartment prior to the move in date.  

Essentially, it's a gift bag with a roll of toilet paper, roll of paper towels, some granola bars and candy, a trash bag, a small gift card for a local restaurant, and some bottled water.  

It's all very useful stuff to have when you're going through that initial moving phase that can be a little stressful.  I thought it was a great idea..and all for probably less than $20!

Just wanted to share that!

I came across a nice house with tall grass in a nice neighborhood.  The house is in good condition but there was a utility disconnect tag on the front door.  After doing some research, it turns out the homeowner (a single, elderly gentleman) passed away last October.  He has no wife, no living parents, no children, and no siblings.  A little more digging, I found out that his cousin has been "willed" the house.  

I've managed to contact the cousin and have a meeting with her and her husband to discuss selling me the property next week (when her husband returns from a fishing trip). It's ARV is around $120,000. It looks like it has around $50k in mortgages and probably needs less than $1,000 in repairs from her assessment. She had no idea she was going to be "stuck" with it, as she so eloquently worded it.

Obviously, they don't want to mess with it and the house is in a good neighborhood that moves homes for sale very quickly.  I think this is a great opportunity with high motivation from the sellers.

Here's my question(s):

1.  If the mortgages are in the original owners name and he has passed, can the cousin sell it for payoff?  (remember, I haven't spoken with them about the details yet.)

2.  Is there some sort of "controlling interest" that is given to a next of kin when there is a death in this circumstance?

3.  Can I possibly assume the note through the cousin?  Or would I need to go straight to the bank(s)?

Anyone that has experience in this field and can shed some light, I'd love to hear from you.

As always, Thanks, BP!

-Ryan

Ever heard of an upper decker?

I've used Kilz on urine stained subfloors before.  I recommend the original Kilz in the white and red can.  The Kilz 2 is latex (I believe) and doesn't etch and absorb into wood nearly as well as the original stuff.  BEWARE:  The initial odor of Original Kilz is rough!  It will eliminate subfloor odors in pretty much any case, in my experience...and I've painted a lot of pee. 

I wish someone would reply to this.  If you find any other threads pertaining to this, please post a link!

Thank you.