All Forum Posts by: Sid Leibowitz

Yes, I agree with Mike Reynolds also. It is all part of where you are geographically, the culture and the value of the project. I have to go back a few years when I was building a reputation to remember all the details of building a reputation. After some time you build a trade where you have repeat business.

In addition to Darren's comments. Try to study the criteria of FICO scores and try to strive to build on your current scores. This helps in future financing and credibility

There are many shady characters out there. A detailed line item estimate is mandatory and cut sheets of the materials or samples should be submitted to you as well when you vet the selected contractors so you have confidence that they are using suitable materials suited to the tasks that you will be expecting on the job. There should be no surprises when you see the materials and workmanship on the job. You should be going into the project with your eyes open in enough time to make revisions to the component in the project. You should not be saying "I didn't know that! after the materials are delivered. If they avoid your questions or make you uneasy in the process, trust your gut and get away from them ASAP. 

Is Certificate of Occupancy required to transfer title? Beware if compliance issues State laws can vary. Talk with local real estate attorney to prevent wasted time and disappointment

Great So, it appears all is on target. The last house I finished, we found out that the last owner installed a brick porch and a cement staircase to the basement from a storm hatch off the back of the house without a permit or inspections over 20 years ago. The work was done properly, just no compliance. He passed away 10 years ago and the house willed to his wife. Then another 10 years passes and she passed away where I bought the house from the estate. Then I cleaned it up and went to flip it and find compliance issues. I was lucky and found a buyer that was willing to take it with the stair and porch compliance issues. I still walked away with just under a million net on 400K out of pocket. I understand the construction issues and always still learning the compliance an code issues. 

Hello Mark. Your contractor appears to be on top of things on the job site. The compliance is another issue. This does not mean that the permits and other inspection compliance issues were not addressed. In New York we have many code and compliance issues in every direction that can hold up the sale or transfer of title at closing. Do you need a certificate of occupancy there (COO) at the closing? Have you discussed these with the contractor? Like is the plumbing and electrical work being done by a licensed contractor and are they insured? We always have the inspections done while the interior is open in case there is an issue and do not have to open up again. These inspections are time sensitive. Things may be different in Texas. I hope that you do not have to open up finished walls for inspection which would be an added expense in time and labor. Just curious.

Mark. This is my type of flip. Have you done an Excel sheet line item schedule so you can keep track of the work progress timing of each phase? I usually turn a construction project like this is 90 days from cradle to grave. Time is money in the flip cycle. If inspections are to be done in progression they have to be scheduled with the town building dept in order to not hit a road block. Do you have to have inspections in phases before closing your work in that need to be scheduled or do you stop the project while you wait for the inspector to catch up? 

I would call an a local HVAC company with a good reputation to survey see what they charge for  the components and see what they charge for  a service agreement on the existing. They should not charge for the suvey. They will be better to give you guidance on your unit and make suggestions.  

When I started many years ago I took a 4 hour sales persons course and took the Syaye eam for RE salesperson. I found a sponsor broker. I become a realtor as well and this gave me access to MLS and I was able to better study areas and markets. I was able to do comps and learned the terminology required to better understand the local law as and to mingle with the local real estate people and go to open houses. Later this enabled me to find some cost effective deals and move at my own pace. Like any industry it takes some time to learn your way around. 50k is not a vast amount where I come from to invest with, perhaps in area Texas. Land is a premium in New York. I believe that the best money spent is to take a salespersons course. It takes about 75 hours and get your feet wet with a local broker mentor. The cost for the course should be about 200.00 max. The state exam maybe 50.00 and you will have a license as well to start a career.

State laws may vary. Connect with a Real Estate attorney in your area. A broker is not able to be held responsible for a legal or tax advise if they are not correct.