All Forum Posts by: Mauricio Hernández

Hi; I generally built in Los Angeles SFV area and I see that many of the developers are putting wall display units (closets) with enclosed glass doors on the new construction homes that list for over $1.8M.

They make a great focal point, and they can cost you about $5,000.00 to build one with no cooling system (just a display).

I would like to hear your opinion in regards if it is worth the investment.

Thanks for the reply Dawn. So it seems like the only option is the lesser of all evils. I also found the HUD list of approved providers and came across Quality Builders Warranty (Liberty Mutual Company)

Greetings;

I need referrals on good companies that sell  builder's warranties. I was about to purchase one from 2-10.com but they have several bad reviews. And I have already advertise the home including this warranty. Thanks for your help.

I am purchasing a property to flip with a partner. Need advice on what kind of paperwork I need to indicate the percentage of ownership and the percentage of profit split. Can it be written in the purchase agreement during escrow or is it a separate contract written by a lawyer. Also how do we let escrow know that when we sell the house. I want to make sure that in case something were to happen to me my wife has the legal documents to back our agreement so she gets the money back Here are the terms:

Purchase price $610K

Estimated rehab and expenses $150K

Loan interest expenses $45K

Closing cost expenses $55K

Selling Price $990K

Profit $130k

The agreement is my partner puts $250K down, and I put $200K down and we borrow $310K.

The agreement is I'll manage the complete project and get 68% of any profit and he will get 32%. We both have the same risk in terms of our investment. As far as ownership since he is puting down $250K (55.5555%) and I am putting down $200K (44.4444%). I think the ownership should be accordingly to our investment. So worst case scenario if the house sells under cost we get our investment percentages after paying the first lien.

There will be other terms on our contract like need to open a bank account with both signers, plus a credit card, etc.

Again I need help in determining if we need only a legal contract or if there is a way that the percentages of ownership and profit split can be on the ownership records (title) when we buy and sell the house. in addition to determining if we can do this with out forming an LLC.

Thanks!

Encino calls for SS in my opinion. White can work against you in that area.

The response rate is great! Congratulations! How can I get in touch with Jerry for listings in my area?

I al an Investor from Toluca Lake Will try my best to make it.

I see margins getting thinner in Los Angeles and good deals hard to come by as I see that investors are either over speculating or willing to work for less in order to keep the ball rolling. Most deals on the MLS are getting over bid. I'm having hard time finding my next project. I am only on my #3 but here is an example of my last deal. Bought it for $500K put in $285K (addition and rehab, carrying cost) $55k closing cost. Sold it for $920k made $80K. That is with out borrowing otherwise I would have made only half of that. I'm happy I made money but for the length (8 month) of the project, and the amount of work and the risk. I don't think it was enough. And I have my own crew as I am the builder contractor. Definitely no room to hire a general. I guess those are the margins I have the get use to. One thing I need to mention I am truly enjoying this business and seeing the final product.

Hi; i am located in the San Fernando Valley. I started this business about a year and a half ago and I am working on my #3 project. I'm having hard time finding my next property. First of all there is not much deals on the market and when they come out they sell for much higher than what I think is worth to an investor. It looks to me that investors are over speculating on the exit price and paying much more than what is worth. Leaving little room for profit and basically no room if a loan is needed. (Prices are going up on the purchase but not as much on the selling) Basically working for a 7 to 10 percent margins. Which seem to be a bit risky and not enough for the length of the projects. I'm talking about large additions and teardown projects. On the other hand I see some developers doing 5 projects at the same time. I would appreciate if you can share your thought or any tips on how others are finding good deals in my area that I might not be aware of it. Btw Cash is not king anymore most buyers are cash buyers now a days.

Bill Gulley and jerry W Yes protection for being sued for any unintentional errors after the property is sold. Hidden molds or pre existing problems that even my inspector overlooked, or a wrong installation like Jerry mentioned. I have been told that if they can't get anything from the actual installer or sub they can go after me and they have 10 years after the purchase of the house. So my question is how can I protect myself from that. In regard to talking to an attorney for advice on protection would that be a real estate or a business attorney? Thanks