All Forum Posts by: Suzanne Griffiths

@Account Closed thank you for inquiring.  We are discussing with someone but will reach out if things don't pan out.

@Chris Seveney & @Jay Hinrichs  Messaged you.  Thanks for responding!

We have a project in Hugo, MN that is complete and on the market. We are looking for a PML that would want to do a short term loan for a portion of the equity when the property sells.

Please connect with me so we can discuss options further. 

sorry, it sounds like this thread got caught up on one point.  GC's taking deposits.  We as a GC and a sub never asked our customers for a deposit and won't pay one. 

I think our frustration has been missed a bit.

How are you finding creative ways to have sources of cash flow while building your business credit?

@Nathan Click will shoot you a PM

@Rick Pozos, yes contractors are part of the issues.  Being in construction for 20+ years as a GC and as a Subcontractor we have never requested a deposit so we don't pay a deposit.  We recognize the need to find contractors that are able to cover their costs for a max of 30 days.  That has been an identified issue and outside of asking them for a copy of their P&L or Balance Sheet we have experienced delays due to their lack of liquidity.  Which brought us back to Labor Only contracts and then purchasing materials ourselves.

In the Minnesota area we are experiencing a labor shortage in the trades.  Contractors are busy all year round and the ones that we have found have both quality and integrity and can manage a schedule are booked out quite a ways.  From what I know of the Texas market you have a larger pool of labor.  What is your experience?

We do often self perform (because we are able), but have the desire to scale and not work in our projects as much as on our projects so that we can complete more projects and free up more time to expand the business.

@David Barnett We are in Minnesota in the Twin Cities and surrounding suburbs. We currently have one rehab that is on the market waiting for it's new owner and one in renovation looking to go back on the market after the first of the year. Our current projects are a 30+% ROI. The business model we have established is a 15% ROI minimum but we generally are less aggressive on pursuing anything under 20% ROI.

Returns to PML's we are negotiable depending on the project, the amount of investment, length of time of investment and security required. 

When we sit down as owners and look at different delays that we have encountered we have found that capital could have solved our problems faster.  For example, you put your 20% down you get funding for the property plus rehab.  But really, you need to have at least an additional 50% of your rehab budget liquid.  Every sub and supplier you deal with wants a deposit, but your construction draw isn't going to fund until the materials are installed.  We could do labor only to eliminate the up front deposit, but then we would need to pay for the materials and then get reimbursed by the bank, again needing to have a good chunk of the rehab budget liquid. 

I know, there are reasonable answers to all of this and once we sell one of the two we have it won't be an issue....because we'll have the liquid capital to fall back on. So, we keep thinking, if we could just get a LOC that we could use for the couple months during rehab and then pay back with bank draws it would make this process sooo much easier. Unfortunately getting a LOC from a lender with just barely a year of established credit with our business has proven to be difficult. We had a private lender that was going to do it for us and then had a shift within his own business and had to delay.

@Joseph Lee yes, that's the one.  Couldn't bring it to the front of my memory.  It all depends on your price point and customer.  I'd use them any day for a rental or if you are renovating in N Minny or parts of St Paul.

We started investing in Real Estate in March of this year, with a 20+ year construction background. We have one flip that is completed and on the market and another that keeps hitting delay after delay. Each time we analyze we keep coming back to the need for more capital. We have been spinning our wheels trying to get a LOC or something to help us push these schedules. We have been working with a broker since September we have gotten multiple pre-approvals or approvals and then at the last second someone changes their mind.

Things are getting super tight, we have a ton of potential profit in these projects but don't seem to be able to leverage it.

Looking for any creative suggestion, advise, a credit partner, a PML, something to help get us going!  UGGGHHH