All Forum Posts by: Account Closed

Has construction started using a 203K loan?  Before you start shifting gears and considering DIY or another contractor, you might want to check with the 203K consultant for the project.

@maria car, consult your attorney... selling your property "Subject To" and with seller financing in the mix is not something to do without the involvement of an attorney qualified in real estate transactions of this nature.

@Marcus J Richardson, @Aaron McGinnis points out a couple of key things to be mindful of: 1) the cost of a W2 employee vs. the cost of a 1099 sub/independent contractor (yes, a PM can be a sub).  With a W2 employee, you'll have a plethora of soft costs and responsibilities that you won't have with a 1099.  But keep in mind that the IRS has clear definitions about the differences between a W2 and a 1099 worker. 2) "This is not a particularly easy job, and there's a lot of idiots running around doing it badly. You should take your time and hire wisely."

As for how to compensate your PM, that really boils down to the kind of person you want on your team... one who is compliantly motivated relative with their fear of losing their job or, one who is entrepreneurial, like it appears you are, and is motivated by rewards greater than simply earning wage?

Do you know if you have enough bricks on site to complete the veneer work?  Regardless, it may be more cost effective, since the existing brick is laid to the top of the foundation, to simply cap it with a rowlock course and install new siding above.

As for the fireplace foundations... by finishing them, do you get a return on the investment, directly or indirectly? You could simply pour a concrete cap over the foundation and allow the future owner to complete them if, and as they desire.

@Dan Chapman, there is no industry standard to partnerships of this nature.  I would encourage you to consider first and foremost: are all the partners happy with the arrangement?  If they are, then why do the percentages matter?

One could argue, that since the GC is "doing most of the work", he would be entitled to a greater percentage.  Equally, others might argue that finding the property and funding the deal are harder than the rehab, and therefore, that party is deserving of more.  There is no absolute.

And it seems to me that having labor in a project is akin to having money in a project, especially if it's his livelihood.

While you've shared the divisibility of the land, what are the permissible uses for it (i.e., what is the zoning)?  Also, does the overall lot currently have 800' of road frontage to meet the 200'/per requirement?

When evaluating the quotes you receive, make sure that they are all quoting an equivalent quality of paint (as paint can vary widely in cost). Additionally, keep in mind, that the bulk of a quality paint job is in the preparation, not the act of painting (e.g., scraping, peeling, caulking, minors repairs, TSP wash, etc.), so be sure you're comparing apples-to-apples.

@Ayman Elmasik, congratulations on getting your first deal under contract!  

Regarding the contract you'll enter into with your contractor, given that state and local laws may govern these, it would be wise to consult with your attorney about the questions and concerns you have to protect yourself.

@Susan Capeta, as both @Ned Carey and @Brandon Ingegneri mentioned, there is just not enough information to provide answers to your questions.  Fire can render a foundation unsuitable, so even a tear down and rebuild (on the existing foundation) may not be possible/practical.

And as @Manolo D. referenced, smell abatement is very real and not to be taken lightly. The last thing you want to do is make the  place beautiful, only to turn on a forced air system for your first showing and realize that the pressurization of the house squeezes out the smell of charred wood.

Also, I've heard of others purchasing burned structures that have been left for dead and have asked for the insurance proceeds to be a part of the transaction.  Might be worth looking into?

DC and Baltimore are very different markets and the pricing can vary.  Best bet is to have a licensed plumber take a look at it for you.

And as the others said, PEX tubing is a great option worth considering for rehabbing or new construction.  Special tools are required though and not all plumbers are going to be on board with doing it... the whole "old dogs, new tricks" thing.