All Forum Posts by: Jay Orlauski

I've hear it said many times that why not just pay someone $60 / an hour so you can continue on with more valuable tasks to do with your time - after all - we didn't get into this business to stick our heads in the toilet. That being said - I have a hard time giving up control and money to someone else for doing a job that I know damn well I can do myself. If I have the time and know how to do something - then I will do it. The other day I  gutted the sink and garbage disposal to get to a clogged drain  - what could have cost $100 and time scheduling appointments and 24 hour notice - I just fixed it with about 45 minutes of work and it was no big deal  - plus i got the satisfaction of knowing I didn't need to call anyone to do it for me.  Could I have been making $500 an hour instead? possibly - but was I?  no. Not at that moment I wasn't -  I had some free time and so I rolled up my sleeves and did it. (hint: it didn't even require a tool) 

There are times though when it makes a lot of sense to let the professionals do their thing - I will install fans , electrical outlets , toilets, garbage disposals, shower heads and other menial tasks  - but when it comes to outdoor ( high voltage) electricity , large trees, A/C work, and things of that nature  - I let the pros do the work.    

I generally will use contractors for contracting work - stuff like installing sinks and cabinets , rehabbing house and framing work  - installing AC units or hot water heaters ( though i did this once myself)  - basically for general construction. 

Hope that help some - 

I have some stories about contractors , but that could take a whole thread  -  I've had them not for show up for days at a time while promising to come over "tomorrow"  -  I've had them lave tools at the job site to get stolen ,  I've even had them steal money from me  - I've learned to put a time limit and a schedule together and have them sign it - make them responsible for completing tasks on time or get paid a reduction on the agreed to price. I've used this successfully in the past - but also lost a contractor who thought he could complete the job , but was too busy and ultimately walked away when he knew he would not finish in the time frame agreed upon.   

Personal referrals are best since you will be dealing with someone who has a known track record.   We have a few contractors that come to our meetup group - they are a great resource for helping to price out rehab jobs and time frames. My favorite contractors are the ones interested in investing in real estate - they tend to look at the project through a different set of eyes. 

Be careful of "contractors" who don't have a licence - they may seem cheap up front but can cost you thousands of dollars if things go upside down - also - you can only recover up to $500 from a handyman who is not a licensed contractor  ( at least here in California) - so if they muck something up - your not going to have an easy time recovering your money.  

ALWAYS  get at least two quotes until you are comfortable with your guy and can trust his estimate - otherwise always get a second opinion - maybe even a third opinion. Once you've worked with your contractor long enough and have seen his estimates play out  - you will have a better idea of how close he is to the mark - many contractors will low ball you just to get the job - then once he is knee deep in it - more expenses suddenly rear their ugly head ...this happens to all contractors - but the good ones will have accounted for the unknowns up front and should come in close to his bid unless something major has been discovered -  

best of luck to you - let me know if I can connect you with anyone

Hi Kyle - Welcome to BP - look at that - you came to say hello and are leaving with a bunch of homework and reading assignments ... that's Bigger Pockets for you - always looking for ways to push ourselves to learn more.  Being part of this site has been a lot of inspiration for me and I have met some really great people here - 

I look forward to hearing about your first few steps into the arena - keep us up to date and let me know if I can help you with anything in Fresno - I've been here for 17 years so I am a little familiar with the area and would be happy to help you locate something or give you some insight on any particular areas.  

Make it a great day!!

Welcome Rosy - there is a lot of talk going on about downtown Fresno right now and several large projects already under way.  Many believe there is still room for growth as we start creating the infrastructure to make Fresno into a technology hub of the central valley. Fresno is no longer just an agriculture economy -though it is still at the heart of our commerce - we are starting to attract big names like Amazon and Ulta Beauty.  There has been a buying frenzy here as investors have been snapping up everything and rehabbing / repurposing buildings. 

We discussed earlier today that it has taken a long time to rebuild downtown Fresno because for a long time nobody wanted to be there in that space and now the people in my age group are not interested in being there - but the younger generation doesn't hold the same stigmas and see it as an opportunity  to take advantage of wasted space - this also open ups avenues for housing in downtown because it becomes very walk-able as more of the area is developed. So the downtown area starts looking more and more attractive to investors  - I think there is still some great opportunities for capital appreciation downtown.   

I looked up that form - a very interesting side note to it is that it specifically mentions that it must be under contract to sell to a natural person who intends to live there for at least a year after the eviction. Good news for Jason is that since he wants to 'house hack' by living there - this could work in his favor. Also seems to imply than an entity like an LLC would not qualify and thus require a 60 day notice. What's your take on that?

Here is the list fro the form: 

OR 3.

All of the following apply. Your tenancy, if any, in the Premises is terminated 30 days from service of this Notice, or on ________ (whichever is later).

         A.   Landlord has entered into a contract to sell the Premises to a natural person(s);

AND B.Purchaser intends to reside in the Premises for at least one year following the termination of the tenancy in the Premises;

AND C.   Landlord has established an escrow with an escrow company licensed by the Department of Corporations, Department of Insurance or a licensed Real Estate Broker;

AND D.   Escrow was opened 120 or fewer days prior to the delivery of this Notice;

AND E.    Title to the Premises is separately alienable from any other dwelling unit (i.e., it is a single-family unit or condominium);

AND F.     Tenant has not previously been given a notice of termination of tenancy

@Chris Williams - thanks Chris - that's  good to know. I didn't realize that it didn't apply to M2M tenants. I will look into that - 

@Tony Wooldridge - don't give up - it takes a lot of guts to step up and put yourself out there  -we only grow when we step outside of our comfort zone. I get the impression that you met a few people through this process even if you didn't have a big turnout. Cherish those relationships and build on them. It is only flop if you give up -  -  please don't give up - I look forward to seeing your group gain momentum and start growing. -  I wish you all the best !

@Ronda R. - that's happening right now in Fresno  - Downtown revitalization is a big thing in Fresno right now and there are some developers who have some big plans for expansion to take advantage of the new demand. Feel free to reach out to me if you're interested in hearing more about it. 

Hi Kiki - I'd be more than happy to help you out. There are still many good deals to be found in Fresno - you just have to be willing to get creative about how you find them - all the low hanging fruit is gone. If you are willing to do some marketing though - there are some distressed properties that need a white night to save them. Are you looking to invest in SFR or multi-family units? Feel free to call me on the number listed in my profile and let me know what some of your investment objectives are and I will see if we can align them with what's available out here. Some of the places outside of Fresno have plenty of opportunity also - I know that many investors are starting to look outside of the area for deals as the market is getting really tight in Fresno. If you do pick up some rental properties - I have access to some some really great PMs that I can introduce you to when you are ready for it. Give me a call or a text when you have a chance and we can talk a little about how you can grow your portfolio in the Central Valley. Make it a great day!

I just realized that the second set cash flow calcs have the incorrect Cash on Cash calculation because it doesn't take into account that you have been living there there for over a year and so you wouldn't have those startup expenses - the amount you spend in year two will be different than you spend in year one since you wont have closing costs or down payment - that calculator is meant for running the numbers of a purchase - when I send you the file , you can play with numbers all you want to see what it would like after the first year.