All Forum Posts by: Tatiana R.

Almost! :-)

Some delays on closing due to easements and water arrangements which is typical for the island. Easements and water have been on Hawaiian style (hand-shake) agreement for over 20 years. Just takes time - a lot of time - for paperwork to get done in Hawaii. No rush. "We geffum."

What did you decide to do about renting your property?

This amount is absolutely correct for California. I don't know what it is in Washington, but I would not exceed this amount if you don't know. A reliable contractor would not ask you to exceed the legal amount, fyi. The deposit is there for the Contractor to be assured that the owner is vested in their services. Yes, that deposit does come off the cost of your project. We consider it the first step in our Draw Schedule.

It may be used for initial supplies, but - please consider - if your contractor's banking situation is so tight that they NEED the deposit, I would be leery. I would be concerned that if they don't know how to budget their personal life, what are the chances of them doing a good job budgeting my project?? Expect to pay what the law requires and no more.

Be sure to check your contractor's license number prior to handing over the deposit. After that, you should (as you explained that you do) have a clear outline of what work needs to completed (Draw Schedule). Hope this helps.

Best $$$ to you!

Welcome to Bigger Pockets, Lupita!

We work in L.A. and from Westchester & Culver City down the South Bay area to Palos Verdes. Let us know if you move into fixing up your potential rentals!

Best $$$ to you!

Hi Mike, You got some great advice in this thread! The Scott Pad site is great!

My guy is a contractor. I keep a grid for each project to track projects so that as different trades are completed on a project, we can bill out. I just want to remind you that every project is different and elaborate on how to keep your project running the smoothest and fastest!

* The down-and-dirty estimator: On average, we calculate $10,000 per week of construction. That is our efficiency goal.

Billing (the completion of a phase in a project) gets delayed most by:

* Changing your mind. Make a plan and stick to it. A month long delay on a fancier door to arrive, different tile layout, the trim isn't as fancy as you thought, etc. etc. I have been blown away by how long things get delayed with goofy changes that really don't add to the ARV. Make your picks before you start. Don't get emotionally attached as the project moves forward.

* Subbing out to various subcontractors yourself. As was mentioned in the thread, you want sub-contractors to work together well. We rarely work with investors that sub their own trades out anymore because of the delays it causes which cost the investor AND the contractor lost profits. For example, the drywall guy gets a cold so the painter gets delayed and starts another job or the electrician didn't show up earlier in the day so we couldn't install the appliances but that crew has to be at another jobsite the next day so we can't get them back until next week, etc. When you find a contractor that you like, let that person manage all the subs. If you can project manage all the subs yourself and don't have anything that needs permits - rock it!

Best $$$ to you!

Welcome to BP!

For investors strictly in the Los Angeles and Orange County areas of California:

We have currently had two successful rehab investment partnerships and are looking for more!

Jeter Construction of Huntington Beach, CA provides contractor services where we float the cost (materials, labor, and management) of the rehab and the owner floats the cost of the house in exchange for splitting the profits on the sale: 50/50.

Yes, we are picky about the jobs we take. This is the first time I am posting in the Marketplace so any questions you have will help me in narrowing down a more concise guideline. I apologize for any inconvenience as I learn to efficiently post here.

Here are some general guidelines to help you know if your project fits our criteria:

• We are currently focused on SFR, but may consider up to a 4-plex.
• The numbers on a sample home would be: Purchase price: $150,000 - $250,000, Rehab costs of $25,000 - $50,000, with the house selling at $250,000 to $350,000 respectively.
• If you are a novice flipper, the easiest way to know if this type of partnership works for you is if your real estate agent has told you exactly what needs to be fixed and offered the same range of increased value. (We do not do handywork. If your rehab costs are less than $25,000, we probably aren't the most efficient match.)
• If you are a seasoned flipper, please view our facebook page for some examples of the work we have done in the past: from Palos Verdes, to Beverly Hills, to Compton and Redondo Beach. If the numbers work, we want to make a profit partnership. www.facebook.com/jeterconstruction

  Please send me a private message if you have a specific project to discuss.

  All questions and advice regarding this post are welcomed!

  Best Business $$$ to you!

$25,000 sounded insane. I'm glad you passed on the "deal"!

 Howzit, Frank,

I grew up on the Big Island (living in CA now), but we are presently in escrow on a property there.

The best I can say is that I agree with the previous post that you should have someone over there draft the lease. Are you going to have a property manager? That would be the person to go to.

From personal experience, I can say that Hawaii is slow-moving, quirky, and -for some unknown reason- thick on the red tape. It's best to go with someone that knows what they are doing "Hawaiian Style".

My guess is that your realtor doesn't want to put a lease together because that is not what they do? Yes, they don't want to be involved? I think it is best to have someone that can check on your property regularly if you are renting out of state. A property manager would be your best contact for drafting the lease and monitoring your new purchase!

Hope that helps!

Best $$$ to you!

Hope this helps.

Best $$$ to you!