All Forum Posts by: Stephen R.

@Brian Pulaski

He is licensed with the state and has a EIN. The contract calls for him to have insurance and says it must be presented upon request. The problem is I never requested it. (Don't worry it's already added to my list of mistakes not to make next time)

@Wayne Brooks

@Edward Schenkel

I do, or did, have a contract with him. The relevant language is:

 "Arbitration. Any controversy between the parties hereto involving the construction or application of any of the term, covenants, or conditions of this Agreement or any SOW will, upon the written request of one party served on the other, be submitted first to informal mediation and then to arbitration. The parties will each appoint one person to hear and attempt to informally resolve the dispute, and, if they are unable to do so, then the two persons shall select a third person who shall act as the impartial arbitrator whose decision shall be final. (emphasis mine) The arbitration shall comply with and be governed by the Commercial Rules of the American Arbitration Association. The cost of arbitration will be borne in such proportions as the arbitrator decides. Judgment upon the award rendered by the arbitrator may be entered in any court of competent jurisdiction."

There is also an injunctive relief clause that he agreed to.

I called an mediator who wanted $3,000 for a single day, but offered a $500 phone mediation to try to resolve it. That may be worth pursuing.

Am I correct in assuming that because the contract calls for arbitration that I cannot file suit in small claims?

I guess the approach will vary based on what my options are. If I can go to small claims I'm limited to $5,000. Arbitration will allow me to pursue the full amount which I would argue is in the $10-$12,000 range

@Michael Hayworth

Yes, my guess is he is hand-to-mouth, and the attorney voiced the same concern that even if I get a judgment I'll never collect on it.

And once this is all over I'm going to write letters to everyone but Santa Clause detailing what happened. The amount of business this is going to cost him will be considerably more than what he owes me. Plus, I am pursuing the burglary and larceny charges so he's going to have his hands full. And if he is convicted of, what in CT is a D felony, he'll lose his contractors license.

@Account Closed He bought about $600-800 worth of materials and left them at the house still in the boxes. I made the decision to fire him and changed the key code. He then quit but returned to the property, gained unauthorized access (likely through a window) and cleaned out the house of all materials. I called the police to have him charged with burglary but believe the officer wrote it up as a civil matter because he claims "the door was open" and the materials were his.

My home improvement contractor quit just as I was about to fire him. He originally quoted me 6 weeks for project completion, we're currently at 11. The backup contractor told me he's going to need another 5 weeks to finish. 

My contract includes a clause entitling me to liquidated damages ($2,000) in the event of a breach but I'd also like to recover the last payment ($4,000) that was made, specifically, for the purchase of materials. CT law limits small claims to $5,000 but I think an independent arbiter may be faster and cheaper. 

I'm looking for recommendations as I've never been down this road before. 

I have an out of state property under contract that I intended to wholesale. However it seems the occupancy risk has deterred many potential investors. I do have multiple written offers all asking for an inspection contingency, which at this point is not possible. 

So I asked myself "How can I make this deal work?" 

I have been in contact with a local contractor and real estate agent and am exploring a JV partnership to rehab the property myself.

I have looked into transactional funding but it seems the time constraints make this impractical.

I do have buyers willing to purchase once the tenant has been removed but hard money will not loan on that type of situation.

That being said, whether I chose to complete the full rehab or resell the property after the eviction is complete, I am looking for funding (short or long term) to avoid losing this deal. Nothing kills a business faster than a reputation for not being able to close a deal. So this is my Hail Mary pass. 

The property is under contract and due to close in a week. I would need $210,000. A current BPO estimated the as-is value at $329,000 and the ARV at $450,000. The estimated repairs are $65,000.

If you are interested in funding or partnering please reach out to me by phone or email 203-364-5850 or [email protected]. I will answer any questions and am open to any other suggestions or other creative exit strategies.

The original marketplace posting with pictures is below.

https://www.biggerpockets.com/forums/517/topics/46...

Marcus,

According to the listing agent the HOA fees for the O'Hare property are $60/m.

You also mentioned that you know an attorney in Miami that dealt with Brazilians looking to invest in the US. I have a Brazilian that would like to invest here. Please send me the contact info so I can reach out to him/her.

Thanks,

Stephen

Wholesale deal

Built in 2004. 

5BR, 4.5BA, SFR, 4,308 sq ft.

Gated community with private airstrip. Approximately 1 hour south of Chicago O'Hare International Airport

Estimate $65k in rehab. (Kitchen, bath, paint, light fixtures, flooring)

Current BPO as-is: $329,900 (Assumes occupancy and ~ $89k in back taxes/liens)

Comps: 

25305 S. Doolittle Dr.

6963 W. Gabreski Ln.

6824 W. Wagner Dr.

ARV: $450,000

Seller has initiated eviction of squatter. Seller to pay all eviction costs. Attorney estimates 4-6 weeks remaining as of 7/17. 

Property to be delivered with clean title. Seller to pay all back taxes and HOA lien.

Cash or financing.

Closing on or before 8/15/17

$215,000

Looking for a recommendation for an asphalt driveway paving contractor for a residential job in Stratford, CT. (Fairfield County area, Connecticut)

Thanks to all. I have the install scheduled for this Saturday. 

@Filipe Pereira. Even though it's Fairfield County, I'm looking at a sale price of probably $285K.

I'm still looking for some advice on how to adjust the SOW? Do I just price out a HE gas furnace and deduct the cost from the HIC?

I am changing the heating system from oil to natural gas in my current flip. I budgeted for, and included, a new furnace in my original SOW. I'm now considering adding central a/c as part of that process. The home has existing duct work and I was quoted $3,700 total for the install which would include a new 92% HE furnace. 

It seems like a no-brainer to me but I'm looking for someone to weigh in on how much of a difference it would make in the final sale price, or potential reduction of DOM, in a place like southwestern Connecticut, Fairfield County.

The second part of this question is: if I hire the HVAC company to do the install, including the furnace, how do I adjust the original SOW and deduct the cost from the HIC?