All Forum Posts by: Ted L.

The hardest part is finding the deal. It’s pretty tough these days to find something on the MLS and make a good profit. So who would find the deal? Then you are outlaying all of the money for the project. Are you buying with your cash and then providing all materials with your cash? Are you physically going to purchase the materials as well? Is the contractor only providing his own labor? Or will he also be paying for others to assist? Are there subcontractors involved? I really think you are better off just working alone and hiring a general contractor and paying them their normal rate.

Buyers want a finished product. Paint them all “revere pewter” by Benjamin Moore.

I actually did this for about 6 years and it was very successful. It was on a slightly larger scale with each tenant having 2-6 employees. We had a very unique, beautiful space in a small city downtown. I think what worked well to make it successful: 1. All the tenants were creative companies and the space echoed this. Exposed brick, bright colors, lots of glass. 2. All of the tenants were compatible with similar values and it some cases there were synergies among them that allowed them to work with each other on projects. Some of the tenants were actually clients for the others. 3. We said “No” to companies who would not fit in culturally. 4. The most profitable tenants were satellite offices of large companies. It worked especially well when the parent company was based in a high rent city.

This is certainly a different way of looking at things. To summarize you are basically paying near market rate with maximum leverage and praying for appreciation. I have a hard time relating to this living in Upstate NY. We haven’t had the huge leaps in appreciation like you see on the west coast. What do you do if the market takes a dive? I appreciate your goal of staying hands off even though it runs counter to many of the discussions on BP

I’m not an agent so I’m not going to give an opinion as to what is legal or ethical to agents. It’s very simple. The selling agent took time to show you the property. It’s absolutely the right thing to do to have them make the offer on your behalf. Trying to cut out an agent’s commission is very short sighted. Furthermore, if the listing agent knew that the selling agent showed you the property and is on board with cutting them out of the commission, what kind of person are they? Are they really someone you want to even do business with?

Walls: revere pewter (Benjamin Moore) mixed by Home Depot in Behr premium. Trim white, satin

If materials are involved I might have a different opinion. You pay when the work is completed. I have a great painter that I subcontract a lot of work to. He told me: pay me when I’m done with something, it will keep me focused on getting the job done. He specifically didn’t want to be paid upfront. From my experience as an architect, investor, contractor, subcontractor (I have worn all of these hats), the best way is to pay for work the moment it’s completed. Don’t expect the contractor to finance your project. Simply break the payments down into small chunks. If 10% of the job is completed in a given week, pay 10% of the job right then.

First, upgrading your long flight is necessary when you are 6’4”, even if there is a cost. If there are other perks besides space that’s even better. I’m not sure if it’s saving or earning but credit card points can provide a really nice little income stream when you have personal and business spending to accumulate points.

I have found that Lowe’s has the best prices with sales and coupons. You can often find a coupon and combine it with the sales that occur around holidays. That being said, local appliance places have better communication and you can actually talk to somebody about your delivery schedule and when something will be in stock. You can develop a relationship with someone that actually knows what they are doing.

I look at everything when walking the property, then make the offer. I have never used an inspector or inspection contingency but I know what I’m looking at.