All Forum Posts by: Dennis Wasilewski

Sticky situation.  I'd probably try to have a 'come to Jesus' meeting with the contractor to explain that a mutually agreeable schedule needs to be defined & followed or else he will leave you no choice but to pursue a legal solution.  And communicate your struggles high & low on social media.  

Edit - The lack of permits is concerning... assuming that rough plumbing work at least should be permitted.

In North Philadelphia I'd rather be in Brewerytown, Francisville, Northern Liberties, Poplar, and West Kensington.  Immediately surrounding the university is too sketchy and with the transient nature of students I don't see it improving substantially.  In West Philadelphia I like Carroll Park & Haddington areas.  Outside the city I like the 'blue collar' suburban towns as well.  PM me or give me a call to talk in more detail.  Thanks!

Rehabbing rentals using borrowed money is kind of a keystone of this site.  Are you asking about specific markets or how to approach HMLs?  

Local credit unions and banks are likely to have lower minimums on commercial loans.  They may require you to be in the region, however.  I personally have a few commercial loans originated by a credit union that are under $75K (10 year term & 25 year amort) and secured by real estate/leases.

Better (safer) areas to find cash flow in PHL.

Looks pretty comprehensive to me and a solid deal. Based on your raw inputs I come up with 28%+ cash on cash return.  

Work through a title & escrow company.  I am not in Georgia but they should be able to assist with this or recommend a transactional broker to assist with the purchase and sale agreement.

You can register a LLC online or with an attorney. Financing changes if owned through a LLC so be sure to investigate that aspect as well.

Was there some sort of contract?  Was anything communicated during rehab when budgets were being exceeded?  

Do you have any sort of contract in place?  A project schedule with arranged draws based on completion?  Did you confirm with the town that permits were pulled?  With 2/3 having been paid, yet so little work done I would be very concerned about him ghosting you.  Might be time to sync up with an attorney and discuss options as I am assuming this is well beyond the scope of small claims court.  

For comparison, during this same time frame I had a crew of 2-3 guys complete a gut job rehab of a 2500 sq ft house, including two additions.

I'd incorporate a solid accountant/CPA.  Lots of financial planners are incentivized to put you into different types of investments.