All Forum Posts by: Karen Margrave

Since the market crashed in mid 2000s people on BP have been waiting for another crash. There's a saying in real estate "all real estate is local" If the local economy is solid, and broad based, if homes are more scarce and demand high, if rents are high, etc. those are the indicators to look at. There's no guarantee prices will drop, or that interest rates are going to get dramatically better anytime soon. Look at what is going on TODAY. Nobody has a crystal ball.  America as a whole has a huge housing deficit. Due to costs of materials, labor, and all the govt. regulations, building costs are extremely high, meaning fewer units coming onto the market, putting more pressure on existing housing. 

 I see that you ship throughout the country, but will they pass code in the various states? Do you provide engineering, etc. to submit for permits to the building department, or ? Can you please send me a price on your models? 

We're contractors and have never marked up materials. In fact have let our clients upgrade, etc. at the same cost we buy for. We figure a reasonable profit when we bid a job, and don't have any surprises. New construction is different, as there's a set budget. They can choose other materials or colors, if they work within that budget. On change orders, etc. that would be specific to a client, they'd be required to pay for those upfront. Contractors also want to control the quality of materials going in, and a client wanting to save money might get a lower quality that could affect the end product, and cause problems down the line, reflecting on the contractor. We had some clients that bought lighting at a flea market. It wasn't to code, and couldn't be easily adapted, so we told them we couldn't use it, a total waste of their money. 

@Amber Masterson Is the PM a licensed contractor? Check their license. Get bids from other contractors, and compare. Many states do not allow contractors to ask for more than a deposit, find out what is allowed in your area. You might want to offer to pay for materials as they're bought, but labor at different milestones. Communicate with the contractor, get everything in writing. You're doing business, watch out for yourself.

@Gigi Eleni you could probably have just replaced the dryer.

@Gigi Eleni probably not, but what does the lease say?

 Can you please text me a link? I did a search and there's a multitude of Pleasant Valley Container sites, in various states. 

The problem is YOU didn't ask nor confirm what the process would be in such a situation. Rather than ASSUMING, you should have specifically explained what the situation was, that you are a buyer and found a house on Zillow that is one of their listings, and you'd like to go see it, and make an offer. YOU should have had an agreement in writing regarding commissions, and how it would work in such a situation etc. BEFORE going to see the property, or making an offer. At the same time, the agents should have clarified what the process in such a situation would be, what commissions/fees, etc. would be, though they did send you an agreement, and apparently their terms weren't acceptable to you, therefore; they had no obligation to represent you. Yes, you can file a complaint against the real estate agent at the local board, and they may get fined. However; it will do nothing to help you get the deal done

Commissions are negotiable. Buyers have the right to negotiate price. Because of the confusion, and buyers thought they were being taken advantage of, there's recently been cases where large brokerages, and even the NAR have been sued. What's probably going to happen is that buyers will be paying commission for their side in the future, rather than the sellers paying both sides. Currently in most instances, the seller pays commissions that cover the buyers side, and sets pricing accordingly, and thus, commissions are included in overall costs, buyers don't have to add to the amount they come up with for down payment, etc. In the future, the seller may be paying their share of the commission only, meaning buyers will need to add an additional amount of cash they need to bring into the deal.

What are your numbers? How much will it cost to complete the work, and what would the ARV be? What is the value as it sits? The problem you have is that it's very hard to get a contractor to come in behind another contractor, as there's too much liability. Also, you should get lien releases from the contractor and any subcontractors that have done work on your property. How long has it been since any work has been done?

The simplest solution is to talk to the contractor. Tell him you know things happen, and ask what it would take to get things pulled back together to finish the job. If you have to put more money out for materials because he doesn't have the money to buy them, make sure you pay for the materials and have them delivered. Control your money and your job, don't rely on the contractor to do it, because obviously he can't. 

If it's not possible for him to do it, ask him for a detailed list of the work that still needs to be done, a list of the subcontractors, etc. and see if you can act as your own contractor, schedule the subs, and get the house finished. 

We live in CA, NOTHING is illegal here anymore, and if it is, it's never prosecuted. You can file a complaint with the Contractors License Board and that may help recover some of the damages.

@Kayla Givens Do you own the houses where you operate the SL homes? In one of your posts you mentioned the landlord. What is the typical rent you pay per month? How many beds per room, and how much per bed? Here in Redding, CA the sober living home that used to rent my house found a house, but it's full, and they're in need of another. The problem is, our rents here are so high, and most tenants in SL aren't able to pay more than 600-700 per bed. What's your experience there? 

@Zachary Ware What if the SL operator actually lives on site? Then basically you're talking about shared housing. How is that any different than someone renting rooms to students, seniors, etc. ?  I believe shared housing is going to become more popular, due to the lack of available housing throughout the country; and lenders, insurance, etc. will need to find ways to accommodate their use.