All Forum Posts by: Account Closed

Don't offer anything and contact the municipality. They will try to reach the owner and if they don't get in contact they will most likely remove it and bill the owner. Most areas have blight ordinances or even better if you can prove it is a safety issue.

No. I don't believe the tenants broke the "joist." That's not a joist BTW. It's a beam that was unsupported and there is a tear where it came apart. Likely because there were too many fasteners in close proximity. If it would have split because of weight, jumping the lumber would have long "fingers" on each side of the break instead of being torn like a sheet of loose leaf.  - Said a Licensed Builder.

Now take this with a grain of salt because I, like most other builders, can put it together fantastic but rarely do we see how stuff gets broken. I'd personally be looking out for numero uno, amigo. Call your insurance company because the adjuster is going to have more experience then any peanut gallery. Then call the local building department to see if the home is occupy-able. Base your next steps from the adjusters recommendation. Builder's and handymen are not going to be very credible in court because their we are the equivalent of a tow truck driver at an accident scene.

@Jeremy Woods

Take a look at the book The No ******* Rule by Robert Sutton. He did a follow up called Good Boss, Bad Boss too.

Aw snap! Somebody gonna get hemmed up.

I coincide with @Matt Michaelson as our company has a 1/3 initial deposit then transitions into progress payments for the remaining 2/3. Now a caveat to that is the first progress payment is when the "materials touch the grass." So if the materials are 60% of the total cost (including their markup) that would be due relatively immediately sometimes even before deconstruction. Once the materials reach the site the homeowner owns them.

When you go to Walmart you don't pay 25% of the shelf price and say well let me take them home and see if I like how they fit in my cabinets.

Just something to consider because if the overall amount is small you may have a materials heavy job.

@Ronald Rohde

I knew there were jurisdictions where licensing for GC's wasn't required but I'm surprised that Texas is one of them considering its size. Learn something new everyday.

I can't imagine a legal system would let a homeowner be taken advantage of for over $10,000 with no adventageous recourse. With that being said maybe I did speak out a line and it would make sense civilly to pursue.

I would hope there is something more than tough luck to badage this wound.

@Justin K.

Your probably put of luck. Me personally I would not pursue it civilly for a few reasons. The amount of time your going to spend to go to court and frustration is going to be close enough or more than the judgement. More importantly is this person going to be collectable? If he works for himself probably not.

You may be better off just reaching out to the contractor's board for possible criminal remedies. In some areas there is a maximum initial amount a contractor can request.

Social media... Doesn't mean a damn thing. He could change his name or business page name anytime and poof all the reviews are gone. Facebook gives businesses an opportunity to verify their legitamecy but most small businesses don't bother. Even if they did most people don't know the difference that little check mark means.

@Robert Leonard

Thank you for the good catch. I actually reworked CapEx to $160 per month once I noticed that the percentage mindset was incorrect.

@Elbert Crosby I would like to expand into the city of Detroit but I think I'm still a few years out.

This opportunity is in Detroit so you know before you send the check in the mail...

I found this deal through a local REI group website and ran the numbers with some success. Cash flow would be almost $400 with very conservative withholding for such things as CapEx and vacancy, but how do I find $30,000 and at what percentage should someone only offering the money be considered at? Some things to consider, this SFH purchase price is only about 25% of the total amount needed to work, the remaining is rehab costs. A bank loan is not an option and seller financing isn't going to get me done because 3/4 of the project is rehab costs. I would like to use $0 of my own because I am leveraged with my construction company for the time being.

PS: I have a nice PDF courtesy of the BP Calculator rationalizing my thoughts.