All Forum Posts by: David London

Was definitely not disclosed and I came to know about it because their billing made a mistake (my guess) and broke it down into 2 charges...took them about 10 days to clarify...when I'm done sorting my issues with them I'll try to post a more detailed account...yet another learning experience. 

@Steve Rozenberg Thanks for the exhaustive question list! I am actually pretty sure I looked at NARPM after I listened to your BP podcast...unfortunately it doesn't seem to be too popular in PA and only one name came up within 20 mile radius and just few more within 50...will check them for sure. BTW loved your podcast episode...I think I already listened to it about 4 times on all my latest trip to my property and then again today...Full of great advises to digest slowly and repeatedly!

Quick question. Is it common for PM company to charge the contractor they recommend referral fee (10%) without disclosing it to the owner?

@Jim Brown Are you trying to sell it yourself? I would consider working with a broker...Most good agents will come to give you consultation for free...and a good one can really help.
I own a small coop unit I rent on the UES...used to do it all myself...then met an agent through a common friend who made a great impression very friendly and professional...let him handle the turnover of my apartment and he managed to get me about 15% increase of the monthly rent...When I was doing my open houses I would always got a trickle of people come by...he managed to get 30 people in the door on his 1st open house and 3 application within the week...What I came to realize is that good agents manage to drive much more foot traffic and create a sense of urgency for buyers/renters...In my case he got in a professional photographer who made the place shine...If you DM I can send you his contact...but any good agent from one of the reputable companies in Manhattan can give you a good advice.

If your coop allow you to sublet for a year I would seriously consider doing so (If it cover holding cost)...Fall-Winter is the worst season to be on the market...if you can have the place rented and then put it on the market around March-April you might be in a better position...again best to consult few good Manhattan agents. Only thing to make sure is that you put in the lease that you will hold showings and OH in the spring.

Good Luck!

Looking for an alternative to my current Property Management company in Bethlehem PA. 

Looking for either a good local Lehigh Valley (Allentown/Bethlehem/Easton) company or larger company who Ideally operate in Philly as well since I plan to explore that market as well soon.

Any help appreciated. 

@Jermell Shavers The contract I have with my GC is a very lean one (almost embarrassed to share it)...about 6 lines written by the GC...knew already at the time it wasn't the best contract but was so cornered time wise and so didn't wanted to waste more time negotiating it. I Did insist on having the GC specify an end date. 8/15...It does include is License which I verified at the state dept website.

Contract state:

1. GC will follow attached plans & SOW (which I produced).

2. GC will supply all material and labor.

3. Additional work or changes to SOW will be on a time & material basis.

4. 25% contract deposit due at signing. Draws as needed for project and remaining balance upon completion.

5. Job will be completed no later then 8/15/19...(unfortunately I didn't insist to specify what will happen in case it doesn't).

PM & GC said inspections should be tomorrow and after that work should pick up speed.

Any suggestions for clauses I have to include in my next project?

@Robert Saunders Thanks again for the wegollook.com tip...checked them and it is for sure a great tool if you operate in a new market where you don't have yet trusted contacts...they have a min of $500 and charge $65-85 for each visit (applied to the 500)...just wanted to share as it might be useful for others in similar situation.


 

@Jamila Thompson Reading your bio it seem to me you have much more to offer then most newbies...the background in civil engineering is for sure a great start...the other asset you can offer is obviously your time and 'just out of college' energy...I would start by offering to go to view properties for investors you would like to work with...this is one of the most time consuming parts and there will be always more properties an investor would like to see then would possible physically...you could probably accompany them for few times to get them to explain their criteria and then have them send to you places they would like you to see...or being proactive about it and find for them properties that match their criteria.  

I would also suggest you start to go to all the open houses you can possibly manage in your neighborhood (or other specific neighborhood) even if you cannot remotely afford anything there...a big part of finding good deals is learning to evaluate properties relative to the market in which they are located (try to be focused on a narrow geographical area in the beginning)...visiting a lot of places will start train you to notice potential added value of places...the various discrepancies between the ad and the actual place...all skills which are transferable to whichever market you will decide to focus on later.

Feel free to DM if you have any questions 

Thanks to all for your great input and ideas.

GC now say new electrical inspection going to happen tomorrow..PM will be there as well...some salty Saturday morning texts managed to at least establish a new attainable milestone...have to wait and see.

@Chris K. Totally agree..for sure this GC was not the right fit unfortunately apart from another GC who's senior crew member was on opioids none of the other GCs even showed interest so the one I ended up with still seemed to be the better choice...I started this weekend combing through the License lookup website of the Pennsylvania attorney general making a list of local GCs to start lining up alternatives.

@Luciano A. Will surly look into the Simply Safe cameras...was actually hoping people will respond with specific brands and system they use..as both you and Chris point out as an investor it's hard to get the best of the best so we must compensate in other ways..Thanks.

@Justin Sullivan Unfortunately multiple trips are not an optioned...more then maxed my vacation days this year and working also in AEC have to tend to my boss clients here in NYC..some of which floated the idea of firing us for similar reasons :) ...the college kid is an idea I like a lot...especially since there are both architecture and civil engineering dept in that university...will make sure to give them a visit on my next visit.

@Jermell Shavers Do this clauses really work?...in my mind they will only scare contractors from even bid on the job...at least the kind of GCs that will even pick an investor reno...I preferred a more carrot approach which obviously didn't work.

@Bryan Devitt ...Are you open to bid projects in NE Pennsylavnia ;) weather is nicer...photos? the guy practically respond to 50% of my text messages...photos will be too much to ask... 

@Caroline C. Agree on the no more then 30 days exit from management clause...I do have that...it is a fairly large PM company so my next move is to go and start contacting the higher levels within the company...it is also very hard to find PMs obviously...and yes I did start to work on the list again.

@Theresa Harris Had actually 10 guys to come and bid the job...over a period of 2 month...not all at once...the whole area is going through a little boom so it is a GC market unfortunately.

@Angelo Mart Noted..don't really want to go that way..but if worse come to worse then for sure...did started to document and organize my various communications with both GC and PM if I will have to go that route.

@Robert Saunders The wegolook option is great...Someone coming on my behalf to the place every 2-3 days should help make the pressure more real...similar to the student option mentioned above but require less leg work on my part. Will definitely do more due diligence next round...being very short on time I relied a bit too much on PM which didn't really worked for me...

@Emilio Ramirez The situation is somewhat complected as I think the GC took the job more as a favor to the PM then really needing me as a client...he is still getting a fair deal out of it as 4 other bids all came around the same number which was slightly higher (but still close to what I calculated)...He was behind on his previous commitments and started my job about 3-4 weeks later then promised...he then had to go close another full framing job before a week of rain hit the area...and then he relaxed while his plumber and electrician were taking their time doing the roughing...so he jumped to another job...Since the house is intended for student housing and by this stage we already missed fall semester...I guessed he relaxed even further.

Generally as an architect I always feel contractors are too optimistic...don't know if you agree as a GC yourself...and I guess one have to be to stay sane doing this.

Daily phones are not an option as the guy practically respond selectively to my phones...lets just say he is not going to be on my next job which is a pity since he does look like a good contractor (work wise)...unfortunately from 100 miles away good communication skills are a must.

Payment is an issue since I am doing it through the management company and they seem to have just approve his draws automatically...but I stopped them just before 2nd draw...firing him though is complected since I still don't have any other GC alternative...do you know any one in Allentown PA?

@Emilio Ramirez Any brand in particular for the GPS ankle ;) ...I'm afraid I'll discover more then I actually want to know!

Will definitely research the camera option..at the moment there is no internet service..and since we got stuck at the electrical roughing no electricity either so some logistic hiccups but probably could figure something in this direction.

The PM and GC are somewhat closer then would be desirable but I don't feel that this is the issue...I am grateful the PM did bring this guy since the 9 I found by various means all didn't work out...this are busy time and so I is hard to find good contractors...I think he is just busy with other jobs and since he figured we missed our deadline (it is student housing) then he just work on my project on his off days from his other promised deadlines...I am an architect myself and paid very close attention to prevent change orders...contract some is agreed and so far he received about 40%. 

@Cassi Justiz Will take your advise and start squick even more...it is against my nature...but I guess this is also a trait one need to learn to keep on track in this business.

Being an architect I made sure everything is lined up and so far happy to say none of the delays were caused by me...yet still 1 month behind with no end in sight...weather was part of his excuses so far...'was on another job...needed to close framing before rains'...etc..  

@Luke Carl Didn't bid all GCs at once...had 1 come during inspection period...come closing guy stopped returning calls...had 3 more which I found through my RE agent an Homeadvisor...all came very expensive...obviously since Homeadvisor is geared towards home buyers not investors...drove around town found 3 more GCs...two were on drugs...

Deal is good enough that even sitting empty for a semester I still feel it's a good buy and hold...I am more on the Rehab and Hold type...not really into flipping...which particularly with the market now seem to me like a game of hot potato!

Contractor is a month past deadline and not even half way done with job. (Only demo..rough plumbing and some rough electrical).
On my last visit to the site about 10 days ago there wan no progress from my previous visit 2 weeks earlier. 

Looking for suggestions on how to monitor his progress from a distance making sure he even get to the job-site.

I found the GC through the PM I hired with understanding they will check on him periodically which doesn't seem to happen as often I expected (what I discussed with them originally) and they obviously don't seem to have any influence on him sticking to schedule...contract state the deadline but doesn't specify what happen if job is not done by then.

I know renovation often go off schedule...at the same time it's hard to finish job without showing to the site!

This is my first out of state investment and had very hard time finding contractors...had about 10 contractor come and bid...some forgot to even show for their appointments...two where literally on drugs...one gave a bid 2x higher then the rest and equal to the cost of the house.

Any advise appreciated.