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All Forum Posts by: Drew Denham

Drew Denham has started 65 posts and replied 161 times.

Post: New to BiggerPockets from Saginaw, and Bay City, MI

Drew DenhamPosted
  • Grand Rapids, MI
  • Posts 174
  • Votes 27

@Gail Greenberg

Gail - I've bought lots of houses in Bay City. PM the details if you would like.

Post: First flip with a GC

Drew DenhamPosted
  • Grand Rapids, MI
  • Posts 174
  • Votes 27

Hi all, 

I'm about to start my 9th flip in East Michigan but the first with a GC. I've done the handy man route and I've been successful but there is really no way to budget a house when you pay by the hour (so i'm not going the hourly way anymore). 

I've received two bids and think the numbers work so i'm asking the BP community of what I need to do to protect my investment:

Ask and call on references of the GC?  

I would have him sign some type of legal binding contract. @Brandon Turner I think you mentioned in a pod cast you have a general form the GC's sign for your investments. Can you potentially share? 

How granular does the bid have to be? When I say kitchen remodel does that include hardware? Sink? Faucet? 

How much down upfront? I'm a bit uneasy handing over $10,000 to someone i've never worked with before. 

I live 2.5 hours away from the home so would hiring some sort of PM to look over/manage the rehab be beneficial? 

Thanks all. 

Post: Painter said he is getting a lien put on my flip...

Drew DenhamPosted
  • Grand Rapids, MI
  • Posts 174
  • Votes 27

@Account Closed

Thanks. I appreciate the feedback. 

Post: Painter said he is getting a lien put on my flip...

Drew DenhamPosted
  • Grand Rapids, MI
  • Posts 174
  • Votes 27

@Carol C.

@Robert M.

I took lots of pictures and I went back to Home Depot and showed the guy who referred him and "oh wow, I see what you mean now" - what a joke. 

He has a VM of me saying I would pay an additional $375 on top of the $300. Still doesn't matter? 

Post: Painter said he is getting a lien put on my flip...

Drew DenhamPosted
  • Grand Rapids, MI
  • Posts 174
  • Votes 27

Long story short, I was in Home Depot buying paint at the paint booth chit chatting with the employee and he said he worked with a "professional painter" for 20 years and gave me his number. I called him, we met, negotiated and decided on a $1100 bid to paint the house and shed. I told him multiple times upfront how particular I am about cutting in and how the last guy slowed the project down (not doing things in the right order). He said 2-3 days he would be done (I gave him 6). He asked for $300 upfront so I drafted up a contract of $1100, to be done by 6/30/17, paint top floor, main floor & shed,  $300 up front, signed by both parties. 

I start getting pictures of the job by some of my other guys - paint runs, using the wrong colors in the wrong rooms, he has is 9 yr daughter helping him, different women in there each night (basically a mess). 

Fast forward to this past Friday. I walk in 6 pm, he is no where to be found. So I call him, telling him we are parting ways, and that i would estimate he is 75% complete on the job and that I would pay him the remainder. 

WHAT I DIDN'T REALIZE is that he used two different colors ON THE SAME WALL (brown and grey). So I spent my 4th of July weekend basically re painting most of what he did. 

I contacted him again, explained everything he did wrong, and he said he is getting a lawyer and putting a lein on the house. 

What he failed to do:

1) Meet the signed deadline

2) Used two colors on the same wall

3) Cut in job not acceptable

4) Used the wrong colors for one room (he told me to write down on the walls what colors I wanted). Right off the bat he got it wrong! 

5) Runs down the walls 

I told him on a voice mail that I would pay him $375 more after I really inspected the house. Do I suck it up and pay him (and chalk this up as a learning experience) or stick to not paying him anymore? 

He isn't licensed... just some guy off the street. 

Thanks all - 

Drew Denham  

Post: Hudson and Marshall - Occupied Property

Drew DenhamPosted
  • Grand Rapids, MI
  • Posts 174
  • Votes 27

Hi all, i've never bidded on a cash only/occupied property and i'm looking for a little advice. I did a drive by the house and it appears there are still people living there and the auction is set to start in two weeks. If I won the bid, what is the process to get them out? Is it a normal eviction process? I read on other forums $500 cash for keys? i've never bought a property site unseen. What do you plan for? Assume the worst? Mold? Foundation problems? ARV is probably 170K.

My dad knows a relative of the people who are in the home so i'm tempted to pick up the phone and feel them out (see if they plan on staying, condition of the house, etc). 

Thanks! 

@Chris Armstrong

Thanks. Mindset as being thankful of having a good job? I get that. Right now I couldn't quit anyways. I look at it as life is too short to spend doing something you don't enjoy. I would rather be painting or landscaping (or learning a new trade) than looking at a computer screen for 8 hours a day. I just need to keep looking to acquire more rentals and find a crew to split up the flips. I might be in a different situation 1-3 years from now. Thanks for your two cents! 

Drew D 

@Michael Noto  deals have shrunk quite a bit in East Michigan but i'm optimistic i'll find something. How about you? Hot market? 

Post: First Duplex in C class neighbourhood

Drew DenhamPosted
  • Grand Rapids, MI
  • Posts 174
  • Votes 27

How do you know officially what class a property is in? I can snatch up 2-4 plexs in what I think are the worst parts of my town, $20-$40K purchase price.  

There is no spot in the city I invest where I would feel uncomfortable being around.... collecting rent, a different story. 

If I were to move on one I would use a property manager. 

@Nathan Gesner

At what point can you go full time (be a realtor, work on flips, and manage your rentals)? A years salary saved up? Multiple flips going on with enough rental income coming in? 

I have a well paying job (but don't enjoy it....), been a realtor now for a few months, have 3 rentals (positive cash flow of $700 per mo), and have three flips (only working on one at a time). I have a crew of 3-4 guys so it takes 2-3 months per house. I'm working on finding another crew of guys to work on one house while the crew I have now can do one (2 going at a time).  I really want to dive into it full time but want to be smart about it. I'm just curious to know what others have used for their criteria. 

I'm about to pull a HELOC of $100K on my PM and buy more rentals (then use the BRRRR strategy) to hopefully build up enough passive income in the next couple of years. I have excellent credit and a relatively low DTI.

Any feedback would be appreciated.