All Forum Posts by: Scott Moulton

By saying "do not pay early" I take that to mean do not pay before the job is complete or punched out? I have been in the construction / design end of this business for a few decades. While you do not want to pay early as soon as everything is done and punched out and you can verify that everything is complete and correct - pay quickly.

Especially in this market if a contractor / sub-contractor has 6 jobs going, they're living paycheck to paycheck and all 6 of their employers are calling and screaming at them whose job do you think they'll go to first? The one who writes the check (upon completion / verification) immediately or the one who you submit a bill to and they put it in their "payroll system" that takes 3 weeks to issue a check?

Jay, from my experience, I’m personally not paying no contractor before completion of the entire job.

Now, I have paid some money upfront in the past, which is okay, but paying the full amount? No way.

Once the job is done, I have no problem paying right then and there via check or card as long as I have an invoice in-hand, right then, saying paid in full.

I understand your point though. I’m sure you can tell I’ve had a negative experience. No fault to the contractor...I take full responsibility for my stupidity.

I've wondered what the industry standard is for this. I had a GC spec out a $16k job for me here in St. Louis and really liked him and his company, but when it came time, he wanted 25% ($4k) non-refundable down payment before they would even think about touching the job. That seemed shady to me so I walked. He said it was because they wanted to weed out the people that weren't serious but that seems excessive.

1 Vote

Are ugly Christmas sweaters allowed?

4 Votes

Originally posted by @Michael Hacker:

We've moved away from craigslist as well and now use Zillow.

I've seen several people say they don't have much luck on Craigslist anymore. Why is that? Lower tenant quality? Less leads?

0 Votes

I've also looked at a potential flip in west county with significant foundation issues, about 25k in repair. I've been hesitant because I think it does affect the ability to sell it, even after repair. I've seen bad foundation work done only to have major settling issues again 10 years later. If you go for it and get the work done, try to get some kind of guarantee in writing from the foundation company that you can offer to prospective buyers. That goes a long way to curb their apprehension.

2 Votes

Congrats on your first investment property! Are you local here or out-of-state?

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Originally posted by @Jim K.:

The lottery is a cynical tax on the hopeless, the desperate, and the poor. I have been all three of these things and I flatly hate the lottery. One of my favorite things to do is imagine one or another of the people I don't like hooked on scratch-offs. I think the statistic is that 20% of the population believes that their only chance in life to reach a net worth of at least two million dollars is to win the lottery. But when your individual income is below $24,000/yr, there is a 38% chance that you believe this.

If I really, really don't like someone, I'll buy them twenty bucks in scratch-offs for Christmas and offer my sincere hopes that they win. I once saw a guy I detested at work win a hundred bucks on the tickets I gave him. I became his instant best friend, and and I know it sounds unreal, but he rushed right out to buy more tickets with his winnings. Surprise, he's even broker now than he was when I met him, and every now and again, he blows money on scratch-offs. Christmas is coming again, maybe this time I'll go for fifty bucks to get him really hooked.

This is great. Totally buying my former boss's wife some scratchers this year!

4 Votes

Very curious about this as well. I'm in the same boat...want to try and use the BRRR strategy to maximize my capital. They talk on the podcast and books about it like it's this simple thing, but I'm not seeing how it will work based on my conversations with lenders. Using hard money and waiting 6 months to refinance would be expensive. Even with my own money in it seems like I can't refi and get it back out easily. And this is all assuming you appraise and get your 70/75% LTV you need.

Funny you mention the bankers not understanding. I explained the BRRR strategy to the loan officers and 3 of my 4 were intrigued/confused by this concept. 2 of them said no appraiser is going to increase an appraisal that much within a few month time period. It all makes me nervous to pull the trigger thinking I'll get my down payment back.

If anyone has St Louis / St Charles bank recommendations that actually work with and understand investor strategies I would also be grateful!

John and David I'll let you know if I have any luck. I plan on contacting a few more soon.

1 Vote

Curious about this as well. This is the kind of thing that has kept me away from auctions.

2 Votes

Saint Louis, Missouri

I work with a local realtor here in St. Louis who also has her own property management company. She's been great to work with. I'll shoot you a PM with her contact info.

2 Votes

Wow great info Max, I had no idea any of that was going on there. Just goes to show the info you find online never beats an actual experienced local person.

0 Votes

Saint Louis, Missouri

All Forum Posts by: Scott Moulton

Scott Moulton has started 1 posts and replied 24 times.

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Post: Bad Foundation - NEEDS Piers - Future Implications

Post: Duplex on Winnebago St

Post: Do any of you play the lottery?

Post: Looking for lender w/ out 6 mo cash out seasoning in St. Louis

Post: Getting Federal Tax Lien waived for a Tax Deed Auction property.

Post: Property Management Company Recommendations in St. Louis, MO?

Post: Best Bargain or Too Good to Be True?