All Forum Posts by: Emilio Ramirez

The money is always the hardest part of construction. Is there a contract? What does it say? It helps to have these terms defined prior to starting the work. 

If there is no contract then it's hard to say. What is the total bid amount? Is all the tile 90% or just the shower walls? I would be pretty upset that the flooring material hasn't been ordered. That typically needs a couple weeks to acclimate before install. 

Alot of smaller contractors are hand to mouth and need weekly or bi weekly payments to keep their laborers going. That being said, I'd be very worried if this is the case and you paid them 32k upfront with half the materials not on site yet. I would try to get an accounting of that money. 

You know... sometimes the contractors don't even know what they purchase and what they are covered by. Best bet would be to call the surety and ask them. Looks like you have the policy number... shouldn't be a problem. If he's not covered... maybe ask him to find out how much it would cost to add the coverage? If he was willing. 

I charge for estimates a lot of the time. It helps separate the tire kickers from those who are serious about their projects. That being said, I am very up front about it and put a proposal together outlining the fee and the deliverables. I also credit the fee against the cost of the contract should they choose to build with me. However, I don't really do projects this small. 

Not sure where you are located but the construction market is a bit crazy right now. Lost too many tradesmen in the housing bust and there are not enough workers around to do the work. Prices are going up. And prices are all over the place. For example, I can put a house out to bid for framing and in Denver I can received bids as low as $4/sf and as high as $12/sf. 

Not sure why anyone is trusting their insurance company to accurately give them the money they are owed for proper renovation or to accurately estimate a construction bid. Contractors definitely have a bad reputation and it sounds like this guy pulled a slimey move trying to charge you after the fact, but I didn't know that insurance companies where about anyone's interest except their own. I've seen insurance companies underbid claims so they don't have to pay out. You typically have to negotiate with them to get proper payouts. Their are construction companies and consultants who make a living doing this. 

I wouldn't bother calling this guy back, but if he calls you tell him that you never agreed to a fee and he has no right to try and charge you. Tell him not to call back. I also would not trust the insurance company estimate to be accurate. Get at least three bids on the work and see how they compare. 

Best of luck!

Why would copies of the plans be included with the sale of the property but not the intellectual property rights? That sounds like you are including the existing plans as part of the sale for the buyers use which is attractive to the right buyer. As a buyer that would be very confusing and misleading. Did you have an agent or lawyer assist you in the sale or did you come up with the wording yourself? Again... I don't get what conveying copies of the plans does for the buyer if they don't have rights to use them? If I'm  buying a property and the contract states that it includes copies of the plans you're right to think I would expect to have the right to use all plans presented in the marketing of the sale and that it included conveyance of the intellectual property rights. Should have been clarified in contract. And if you got 250k over asking... what are you fighting for... maybe I'm misunderstanding your post.  I'm not a lawyer and this is not legal advice... blah blah blah...  

What kind of finish? That will impact the price. Assuming 4 x 8 sheets you're looking at about 88 sheets not including waste. That puts you at $70.45/ sheet. Seems pricey but that's why you get 3-5 bids. 

And... based on his breakdown... materials cost seems low and labor high.

This is a bit of a generalization but land from ft Collins to Colorado springs sells for a premium. Land in the ski towns sells for a premium. Land in tertiary cities sells for a premium. Anything else is rural. Rural land can be bought very cheap just like in Texas... so you really need to get more specific. If your sister wants to live like a hermit in the middle of nowhere with snowmobile only access in the winter, there are plenty of areas that she can buy for under 10,000.... :) I would suggest putting together a list of requirements for her purchase and then It will be much easier to chime in on specific locations.

Not to mention... Check out Tiny House Enthusiasts - Colorado http://meetu.ps/c/2vn3x/tBrzc/... on Meetup

and what's wrong with trailer parks. They're already a proven vehicle for delivering affordable housing. They exist within a set of established codes and regulations. You could market your project as a 5 star or class A park. There's plenty of investors interested in manufacturers housing.

For the record I think tiny houses are not the best option for developing new affordable housing. I would like to see something passed in Colorado similar to this... 

https://www.google.com/amp/s/w...

eliminate mandatory SFH zoning and now you're talking about affordable housing.

Also 4% seems low for an interest rate on a commercial property, but maybe in Canada? 

Your math doesn't seem right. If I do 4240 * 13.50 I get $57,240 which would put you at a 6.6 cap. Not great but if you truly have zero expenses then it's not bad. I would double and triple check what the tenant is responsible for. Usually if the tenant is responsible for all CAM and up keep, the Owner is still responsible for structural items and building enclosure plus exterior improvements. I would make sure that all of those items are included. 

The game would be to negotiate yourself to a better cap rate. Would the tenant be willing to sign a new lease as a contingency on closing. That happens all the time and could help with lending and downpayment. 

Lastly, by using your heloc, you are essentially buying with 100% financing and highly leveraged properties are hard to cash flow in general. I would also check to see what your monthly hold costs are if your tenant leaves. Can you hang on to the building if it is vacant for a year? I would look for a strip mall or warehouse that can have multiple tenants. That way if one leaves you are not footing the entire cost by your self. 

@Joshua Howaniec Hey Josh. Design Build GC here. Regarding your original post if you're looking to meet other contractors as  means of networking and/or drumming up more work. One good place to start would be your local AGC for commercial construction and the local NAHB or equivalent for residential construction. Both groups put on events that GCs typically attend regularly and it's a great place to meet those guys and exchange business cards. 

As far as presence on BP... as a real estate investor... I'm on here way to sporadically... as a contractor... I could give a rip. :) Actually have met two of my best clients on biggerpockets, one of whom, I am still doing business with today. I laugh every time I read a "How do you find a good contractor," post and feel like I should post a, "How do you find a good investor," post...LOL... :D

watch out for colorado senate bill 19-225...

https://leg.colorado.gov/sites/default/files/documents/2019A/bills/2019a_225_01.pdf