All Forum Posts by: Steven Mitchell

Am I the only one who thinks this isnt worth it?  Youre under 1%. 1% isnt really working in todays environ now that money has gotten more expensive.  If there is any deferred maintenance that the inspection doesnt catch (and in my experience, the inspection is next to worthless and they cant be held liable) then its going to be even worse.  There are much better finds out there, hold your money till you find something worth buying.  

the wholesalers in my area are very inexperienced.  Im sure theyre always taking on new blood to show them the ropes.  Id reach out to the big shops in  your area and start at the bottom and learn how to do it for 6 months.  A true wholesaler who can find value and pass that on to the investor is a rare unicorn.  

How are you even making money in turnkey right now?  Money has gone up to 5% which doesnt cash flow on the 1% deals  theyre offering.  

Thanks for the responses everyone.  Im just trying to avoid being unreasonable.  Ill pay them upfront and do 3-4 draws based on key tasks being accomplished, holding back 10% for after the punch list based on what Im reading.  

Hello,

A little background.  This past year we have run the gamut of GC's.  A fellow rehabber was taken for 23k.  The GC just took the money and never showed up.  I had a few bad experiences culminating with this last one - we hired who we were told was the best GC in town.  The 80 day rehab has now ballooned to 8 months due to him spreading himself too thin and using me as his unwilling free hard money lender.  Now we are suing.  Anyways.  Its been less than ideal.  

We are now starting a new project.  We are now that girlfriend whos been beaten by some dude for months, and now our next relationship gets to deal with our baggage.  LOL.

Ive been told by a rehabber in town that its not realistic to have the GC sign anything that commits them to penalties if they run over, so thats off the table....right?

How do you guys structure your contracts?  I dont see myself giving anyone 50% up front anymore.  Is it realistic to think we can find a GC who works more hand to mouth?  Who can afford materials and labor without us prepaying?  We want to be fair, but we dont want to find ourselves in the position of them having all of our money again, and us not having any recourse.  

Thankyou for all the responses! Sorry for asking sucha  searchable question

Hello,

We recently bought a property we need to be managed.  When signing the contract, we noticed they charged 10% of gross and 50% when they find a new lease, which we agree with.  However, if we fire them before a year is up, we owe them 675$.  When asked about this, they said its because they usually charge 100% of the lease fee, so if we fire them they need to recoup that.

Is that a standard provision?  I feel like this is giving them all the leverage, so if things go south I wont fire them due to stiff financial penalties.  But we also dont want to be unreasonable.  

If they dont work out, what 5 questions would you ask a property management company to vet them?  If we have to find another.  

Steve

@Aaron K. Yeah we looked it up on the internet, its a show and go for sure.  

@Betty Cruz it has a lockbox on the front door, any realtor can go show it

Any ideas guys?  The house next door just sold for 300k, we cant get any bites here at 229k.  My agent says its because the foundation is shifting, so when little problems crop up like the backdoor recently wouldnt close right, it scares the agents off and it doesnt get shown.  

I dont understand how minor repairs can mean a 70k swing in value from the next door.