All Forum Posts by: Alvin Uy

30 days?  That cant happen here because city permit and requirements are pretty strict.  Plus foundation needs to be completely redone new for Protohomes structure requirement. 

Did the mod builder you dealt with do custom design based on your lot or were they predesign selections you had to choose from?

I’ve started to build ground-up multi-units for myself and its been a painfully long to get to completion with all these new requirements.  So I started looking for other options if I want to keep doing this.  A new friend suggested looking into prefab homes...   So i did!

Over the weekend, I had a chance to check out a presentation of PROTO HOMES at their headquarters in Los Angeles. ( www.protohomes.com )   I was always skeptic about prefab (offsite-built) homes before my visit.   I was concerned about quality and the appraisal value.  But this particular builder had me convince this might be a good option to consider for new developments in Los Angeles... especially for multi-family.  Unlike traditional modular/manufactured homes that have to be craned in... this company’s process is almost the same as traditional where they custom design your house the with their inhouse architect and the same materials as traditional built homes.. The only real difference is the process of being built offsite... and assembled onsite using their proprietary method.  They claim to get new construction completed in 4mos... and more cost effective ($170/sqft) compared to your traditional stick built homes.  They also claim that their homes will appraise the same as stickbuilts.   

That said, Im not a fan of their exterior modern designs but the process looks promising for future projects.   Anyone here have any experience working with this company or have bought one of their homes?   Are there other better prefab home builders/companies like Proto Homes that you can recommend in Los Angeles or in CA?    

I suggest some kind of interest only loan with no prepayment penalties.  However, many investors that do flip buy “All Cash” by using private money or Hard Money to acquire properties to close fast without contingencies in competitive markets.  

@Joe Mazur

Im seeing red flags off the bat. Having had experiences with flipping partners myself in the past.... a lot can go wrong. Doesn’t sound like your partner has much experience... and neither do you (i assume).

If it were me... I would not do this deal... PERIOD!

Anyone in SoCal, Los Angeles?  I need one too

Great advise.  

I should clarify... building 2 houses on the lot (LARD2).  Front house is already in progress full demo to the studs has been completed (with some minor framing/foundation work also in progress).  Back house is still in plan check, but ground has been prepared and ready for excavation/foundation.

Hi @Will Barnard. Thank you for your response.   Im a big fan of your work.  I've also been following you and taking notes.   

Unfortunately, getting rid of my partner is not that simple or an option in this juncture. This is her project and I was the "investor".  We were 50/50 on the financing, so she also has a lot of money tied-up on the project (mostly due to mismanagement).    She also happens to be the sister of one of my closest friends so its just going to complicate things (another big lesson learned here).

That said, after speaking to my partner over the weekend, she is open for me to run the show.  ( I should really say my wife and I are now in control... just in case she reads this. LOL )  For starters, we have taken over project management and the release of funds for construction.  This week Im trying to get this project back on tract, starting with getting the building plans approved. There are some issues with the getting permits.

I would like to get another GC... but not sure I can find another GC without doubling the construction cost / budget.  If you have any recommendations and suggestions, I would be happy to listen.

 Yeah...  I can't really get rid of her at this juncture since she has money tied up on this project as well.  Also, She brought me onto this project as the back up "investor".   Im in way too deep now too financially... so I have to see this through.  The good thing is, I have taken over control of the project so to speak since I posted originally... I guess we'll see how this goes. 

Well... we are 50/50 on finance and profit on this. She was in charge of construction, but my wife (realtor) and I are in charge for the design and sale of the property. A very simple arrangement under an JV LLC.... and so we thought.

The rub is in the way the construction and how the project is being managed and handled.  There's a long list of things that is not going right...  Mostly, her lack of communication, decision making, and project management style are not line with mine and my wife's ( i.e. her GC has an expired license and refuses to speak to me directly because I wasn't the one that hired her.  Her architect is cheapest she found but obviously is not very good and on top of that doesn't speak English that well... so now is charging on revisions).   There's just a lot of confusion.   Im finding she is not as experienced at this ground up/flips as she claimed she was.  Im finding myself double checking her work.  She's a terrible project manager (that would have fired I by now).  Also, it come to believer her GC is really driving the bus... and not her.  This is why things are not ran efficiently, the project is costing more than anticipated... a lot more... which now leaves us virtually $0 budget towards the design and finishings which is what really sells the property. 

When I call her on it, she's of the mindset that as long as the house has the same square footage and bedroom/bathroom count as those that just sold, it should sell for the same.   My wife and I specialize/live in the area and do not agree with this thinking because it is definitely not the case...   especially when it comes to selling a property that is over $1.8M in a very trendy / artsy community.  Its really gotta look the part.   Big lessons learned here.

Hi George! Congrats!!!   You have certainly define the entrepreneurial spirit at its finest.  I love your story and I can identify with you as a kindred spirit.  Not only are we both Asians... but even our last names are very similar! LOL!!!    In fact, I too, was on Shark Tank for a product I invented except I walked away from 3 offers including a $1M buyout offer from the Sharks ( I have a link of my episode in my profile).       

Strangely on the same path...   I am finding myself back in Real Estate where my true passion is.  Im new to BP... and doing my first ground up multi-unit project as well in Los Angeles.  Reading your post made me realize I was spending about the same amount $$ to build only 2 houses in L.A.    Damn... Im in the wrong state!!  LOL!!   That said, If you need investors... please let me know.  ;)