Off-Market Property on Cambridge, Somerville Line
Investor · Boston · Member since 2024 · 1 post · 0 votes
Hi All,
I'm in touch with an owner of a property that is mainly in Cambridge, partially in Somerville. It's not on market yet, so might be a good opportunity for the right team. It likely would need to be a tear down and rebuild situation, but there is a decent plot of land and friendly zoning to build on.
Let me know if anyone is interested. If we can get the right team together and the numbers work. We'd def need some good contractors.
Thanks,
Brad
Do you have numbers that can be verified? What are you plans, for financing? HML (Hard Money Lending)? What is your Exit Strategy? Since you need contractors, I suggest that you interview, at least three General Contractors (GCs) and ask the following questions. A GC will cost more, but will make your life easier presuming the scope of work is well organized, the project is properly managed, etc. In addition, I strongly recommend that you verify all licenses and Insurance Policies.
1. How many homes have you rehabbed and/ or renovated? What was the magnitude, of your projects?
2. How many projects is your company currently undertaking?
3. Do you work with Investors that need to adhere to strict timelines and scope of work?
4. Do you have multiple Sub Contractors, for similar trade skills, such as plumbers, electricians, flooring crews, painters, etc.?
5. Would you provide a copy of your GC License, your Certificate of General Liability Insurance, and your Certificate of Workman's Compensation Insurance?
6. Are you bonded?
NOTE:
To be “bonded” means the Contractor must purchase a Surety Bond, which serves as a form of Insurance to protect the Contractor’s Customers if he or she fails to complete the job properly or fails to pay for permits, subcontractors, or other financial obligations.
7. Are all of your Sub Contractors Licensed and have Workman's Compensation Insurance? Would your Sub Contractors be willing to provide such information, or would you be willing to sign a waiver stating "All your Sub Contractors have Workman's Compensation Insurance?"
8. Do your Sub Contractors have the ability to verbally communicate, with English Language Only Speakers?
9. Do you pull all necessary permits?
10. Do you provide a written warranty, for all labor? If so, what is the length, of the warranty? (a minimum of 1 year)
11. Do you provide all applicable warranties, for materials?
12. Who is in charge of the job site, to ensure timelines are met and the Scope of Work is properly completed?
13. How do you handle dirty work such as debris disposal and clean up?
14. Would you be willing to receive four draw payments that would correspond to four phases of the rehab project?
15. Would you provide references, from past clients?
If the General Contractor that you are interviewing does not provide you their GC License, their Certificate of General Liability Insurance, and their Certificate of Workman's Compensation Insurance, this should be a Red Flag, for you telling you to move on to another GC.
If the General Contractor that you are interviewing does not give you specific answers, to the other questions, this should be a Red Flag, for you telling you to move on to another GC.
You should contact their Insurance Company and verify all Policy information such as, but not limited to the Policy Number, Coverage Limits, and the policies’ date of expiration. In addition, you should also visit your state’s Department Of Business And Professional Regulation and check the GC’s License that it is current and valid. You should also check, if any complaints, liens, lawsuits, etc. have been filed against their license. Vet! Vet! Vet!