All Forum Posts by: Travis Sperr

 With all due respect - if you do not have experience in rehabbing property, a 1940's house that needs complete rehab is not the place to start. Our market is challenging, deals are not easy to find, but having all of the right resources is everything which includes the ability to estimate true construction costs or a member on your team that can. You may consider fine tuning your skills or finding the right people to work with (contractor, mentor, agent, lender, etc) before moving forward on a deal

I stopped referring contractors years ago for a number of reasons. 

@Sunitha Alli - I would strongly suggest you get qualified contractor bids on a project like this. Too vague of a description to offer any real value in estimated cost and the cost of construction is increasing significantly right now in our market. This creates a catch 22 - if you find someone available to put a bid on a property you don't already own or under contract on and they are available to bid the project - they are probably not the right person. It is challenging right now to nail down costs without experience in doing deals, especially on large rehabs. 

Yup this sucks - the worst part about these situations is that the contractor has all of the leverage. I am not sure that I agree with your attorneys advice (assuming he is a RE and not the guy that made your estate plan). If your contractor has provided the intent to lien the property you can't sign the affidavit at the closing conveying clean title.

If I had your shoes on I am first going through the contract with a fine tooth comb to find where you are protected - if it was his contract you likley are not - but never know how savvy the fella is.

Next if you are not complete i would give him proper notice (according to the contract and/or state law if applicable). Hire someone else to complete the project and move as you would. The lien if placed will stay on the property, but the title company will almost always allow you to resell the property as long as you escrow 150% of the lien amount. So the lien won't stop you from selling the property will just tie your money up. At that point I am going after him guns blazing - most contractors don't understand the escrow and will think when you sold the house they lost out, if he is represented that changes. Check with title but I believe once a mechanics lien is placed they have 6 mos to collect and release or move forward with a foreclosure (extremely unlikely unless he has significant financial resources). At the expiration you would get you money back - double check with title.

ultimately you will likley settle with him and pay more money that you feel he is due and less than he feels like he deserves. And from this point forward will have your guard up so high you will never go through this again. 

You mentioned you are in a partnership - make sure everyone is on the same page and has the resources to get through this.

You asked for hindsight advice - looks like you did it all right - my guess is that you may not have known all the right questions to ask and/or couldn't read through his BS. Also I didn't see that you asked for and called references or got multiple bids. 

Good Luck!

Years ago I stopped lending in Pueblo because of the challenges we had there - not to say investors can't be profitable there but it just didn't work for me. My first two questions when reading our your loan to value (how was the value come up with?) and where does the investor live? may not seem significant but it has been my experience that the closer the borrower lives to the subject the better the outcome - meaning that if an investor that lives in Ft Collins, but is only doing business in Canon City because of low prices I would pass. 

We meet once a month to bring real estate investors together. The meeting is free and is based around networking. This month, join us as real estate investor Aaron Lebovic teaches his class: Finding and Making Secret Off-MLS Deals Before, at, and After Foreclosure Auctions!

There are THOUSANDS of transactions in Colorado that take place and never hit the MLS. And now, many homes in foreclosure have equity! Hang on to your hats - this fast paced and action packed class will uncover 8 ways to find and make deals throughout the foreclosure timeline without touching the MLS. This isn't just about buying at auctions, but buying directly from homeowners, strategies on buying junior liens at deep discounts, and getting great deals directly from active auction buyers!

When: Thursday, August 10, 2017 @ 6pm

Where: The Ritz Grill - downstairs in the Elbo Room

15 S. Tejon St, Colorado Springs, CO 80903

How Much: FREE! Bring a friend!

Aaron Lebovic is a third generation real estate investor and an expert on finding deals throughout the foreclosure timeline (before, at, and after auction , with a lot of cash OR little money needed. He has personally invested in over 130 distressed properties. Check out reviews of his classes on Renav.com/reviews, you'll be AMAZED at what people are saying and WONT want to miss this class!

We look forward to seeing you there!

Recently used J&J tree care on two jobs- one small and bigger. Fairly priced but more importantly they answered the phone and showed up which is tough to find right now. 

http://www.jandjtreecare.com/

@Bill S. thank you for the mention. 

@Neil Hohmann I sent a PM. 

I've got a property that is currently vacant in Aurora that I'd be willing to let you run through. Contact me via PM or email address in signature (preferred).

Whats the address? 

@Barry Rupisan - you are likely seeing that they are a flat fee and pretty inexpensive, what I know is that their system is heavy on technology that allows them to do more with less direct interaction with the tenants. I believe they provide a tenant guarantee that is more or less an insurance policy against the tenant leaving or getting booted within x months of the lease. A colleague of mine actually interviewed the local manager and didn't find it to be a good fit because they wanted to touch base on repairs rather than just take care of them and bill later. Some people would love that arrangement - he felt like it defeat the purpose of hiring a manager. This was at time where there was some transition so things could be improved on that front.