All Forum Posts by: Emilio Ramirez

Why not boise? 

If I were to invest at a distance it would be places where I have boots on the ground. Primarily other places I've lived before, know the neighborhoods and have some kind of network.

Do you have experience building? 19 duplexes plus a subdivision build out is no small feat for a first timer. What about flipping it to a builder? 

One month late and on budget is pretty good in this market. Unlicensed would concern me a bit. Who pulled the permit? Who is the builder of record? Are there contracts? Is he insured? Is the insurance adequate? Who is carrying the warranty? If you are paying the subs directly, you could be seen as the builder of record and subject to construction defects laws which in Colorado can be onerous.  

Cost per sf is a good metric for penciling a project but like most cost questions on this site the real answer is, it depends... :) 

Commercial contractors vs residential contractors are generally more sophisticated in their systems, methods and definitions so a general standard is more easy to identify and discuss.

Residential contractors and the residential industry typically have a more random definition of what cost per square foot means. Regardless, the simple equation of quantity x unit cost is attractive for high level proforma but you need to specifically define what the quantity represents and what the unIt cost includes. In other words... you need to ask your realtor those details when they throw out numbers like that. Based on the $100 - $150 range you got I don't think your realtor would be able to answer the question. So... you need to ask someone local who can answer the question. Hint: contractor or other investor building that type of product in your area.

It's easy.... 

ARV = x^10/sales price plus the interest rate of 5 divided by 3.14... :D

Or just ask this guy

Hmm... ok. Can't seem to link video. Google search "determining arv" and first video that comes up is Brandon telling you how to do it.

Polybutylene had some failures back in the day but if it hasn't failed by now you're probably good.

LP siding had big problems in the 90s but there again most of that stuff has wasted away and the new stuff is pretty good if properly protected with paint.

Not a construction material but any house used to manufacture meth or even grow weed will have potentially 10s of thousands of dollars in remediation.

And then of course there's the occasional house I come across where someone deep fried a frozen turkey...  :D

@Nathan Veech Hey Nathan. Are the lots already split? If so, then you could potentially build one sfh on the vacant lot while living in the fixer. After the first home is finished you could move in, do your house hack and tear down the fixer and build the next one. That would help with your living costs, if that is your goal. If the current house is in the middle of the property and it needs to be torn down before splitting the lots then you will have to move else where while the lot split is happening. Need to get a handle on construction costs. Any luck finding a GC?

A general contractor will handle a construction project from start to finish. This is a simplified version of how they work, but Sometimes they simply manage the process, hire all the subs and buy the materials. Sometimes they do all the work themselves and buy all the materials. Sometimes it is a combination of the two where they do some of the work, buy some of the materials and subcontract some of the work. Sometimes they simply provide management. Sometimes they simply provide labor. and on and on and on... 

Some will be very rigid in how they work. Others will be more flexible. For example. Some will only want to hard bid a project. Give you a price and not break anything out. Others will be open to you buying some of the materials, have an open book accounting system and maybe even let you do some of the work. It all depends. There is no hard and fast rule. 

Biggest mistake an investor can make is assume a contractor is a contractor is a contractor. Just like all the different brands of soda, there are different brands of contractors. Maybe beer or cigarettes would be a better bad analogy! 

Definitely sounds like a tear down. How much work have you done and how much invested?

Drive around the neighborhood. Do you see any new construction? If you do that's a good sign. Stop on site and ask for the GC or Builder. 

Know any realtors - ask them

Have any friends - ask them 

Have any coworkers - ask them

Is there a local real estate meetup? Go there and ask them

That being said... you will need to be able to sort out the folks who are trying to help from those who think they're experts from those who might be. 

I recently did a remodel for a very similar project in Winter Park. Awesome place in my opinion and growth opportunities are tremendous. A preeminent ski area in colorado that still has land to develop. Guy who owns the property had the same idea. 

In order to get an str permit he said you needed two local contacts that could be at the property within 1 hr. Seems directly created to discourage self management of strs by folks in Denver and to promote the use of locals. I think the unintended consequence is that it has promoted the use of management companies local or remote who can easily make those local connections to meet that requirement.  The management company he picked provided all consumables including bed sheets and towels. They charged 40%of gross! I don't remember if that is all bookings or just theirs??? I believe he has negotiated that down after his first year with them. He got  bookings all summer but he didn't have rules on minimum stays so only weekends were booked plus a couple full weeks here and there. I'm not sure how the fall is going and this will be his first full ski season. Will be interesting to watch. 

I do know a couple from boulder who is self managing their condo.