All Forum Posts by: Chris Miller

I called yesterday the Commissioner of Revenue office to pay for my business license since Portsmouth Permits department told me I had no choice if I wanted the permit. I begin to explain to the clerk my situation. Her exact words were that is insane. She said let me put you in touch with a person who might help you. So I talk with one of the head people at the Commissioner of Revenue office. He told me the permits office were making it more and more difficult for people. Some of the stuff he was telling me "off the record" was jaw dropping, then again its Portsmouth. He said no don't pay for the business license, It is not policy it is them making there own rules. He said the only time they should require someone to get a business license in my situation if the project was over $25,000. He said in my case the work is less and I am the owner. He said he will call over to them personally to tell them I do not need it and to issue me my permits. Both people I talk to were very helpful in the Commissioner of Revenue office and respectful the exact opposite at the permits office. So I call the permits department and as ask when I could get my permits I like to pay for it now. The lady said When I issue them I will let you know. SMH, I have been waiting weeks and still waiting after all this headache these people put me through. So will see today if I get them. 

Interestingly many of the Contractors I know and rehabbers all have the same feeling toward Portsmouth and are trying to avoid the permits department at all cost. They make there own rules whenever the feel like it and will tell you that. If you don't just do what they say and try to reason with them it seems the worse the get. Its crazy because we are truly the ones beautifying and uplifting the community why try to stop that?

Thanks everyone for your input.

Thanks Patti Robertson for the info, I guess I really have no choice but to get the Business license. I didn't want to give them another dime but do not want that to allow me to loose out on the sale. No other city required me to get a business license in there city and I have done work in all of them in the Hampton Roads area. Its crazy because this is a property I have own and it is Deeded in my name. They really gave me the run around. 

Kristopher Kyzar you are right, you would think they would want someone to help beautify the area instead of making it difficult. 

Let me first say I own a few houses in the City of Portsmouth I do not plan to own anymore there. It is in fact on my No buy area list. Tenant forgot to cut grass before leaving out of area I get a bill, Tenant car broke down and is in the yard while he works on it I get a bill, you get the point. 

I have a house that I applied for a building permit, after waiting for a couple of weeks I called up the permits department only to find out I was denied and they sent everything back which I included copy of the deed showing I was the owner, Class A license, Scaled Plans. Shocked I ask why I was denied when I showed proof of ownership the clerk says because that is not my primary residence and my return address was Hampton and she made the decision to mail me back my stuff which included plans, proof of ownership, my Class A Contractors license along with other documents  ect. { I never received it she didn't even give me a courtesy call to let me know I was denied}. I mentioned the Virginia Landlord Tenant Act and my right to pull permits on my own property she said she didn't care about that and she {the clerk} made the call because it was not my primary residence.  I ask to speak to the building official. CBO Told me they are trying to STOP FLIPPERS and I needed a contractor license and that they will not issue me a permit. I told her I sent my Contractors license with the application, she asked me to resend everything and that it is a requirement in the City of Portsmouth that It must be your primary residents in order to get a permit or have a valid Contractor license. I said no problem. I included my Class A license along with everything else and sent it back to her again. 

I then, shocked out of my mind get a call back after another week of waiting for them to tell me I am being denied for pulling permits. City Building Official then tells me I need to have a Business License in Portsmouth in order to pull permits. They will not issue me a permit and I need to go to Commissioner of Revenue and pay for my business license. I explained I have never had to do that anywhere else. She said that is policy . She did mentioned she researched me and can see I have not done any work in Portsmouth before but that didn't matter I still had to get a business license in Portsmouth. 

I have not sold a house, do business nor live in Portsmouth, I am now being forced to get a business license in Portsmouth even though I have NO future plans of having anything to do with this city. 

I have a buyer ready for me to finish this house and I cant even sell it to her until I get these permits. I am being forced to get this business license in this city. 

Any one else had to deal with this? No other city in the Hampton roads area and outskirt have made me do this. Any suggestions will be gladly appreciated. 

Thanks

Hey Adam, as was mentioned its a numbers a game that requires effort and hard work. You may have to go through 100's of potentials just to find 1 decent to good deal. But Marketing and patience and persistence is key. Try different avenues to get deals as was mention direct mail, signs, cold calling, door knocking, referrals, drive for dollars,  Get different lists and attack them such as code violations, absentee owners, evictions, probate, fsbo, pre-foreclosure and so forth. Then once you have those leads set up a system where you can keep in touch with the leads even if they say no or not now it can change later. Thinking back of how I got my last recent 4 flip deals, one was from a lead in 2014 where she called me off a sign, timing was not right at the time kept in contact with her over the years and she called me finally ready. The other was from a list of absentee owners where the landlord was tired and the house needed work, I called her off the list, cold called and became a good deal. The other was a referral from someone I had known for years knew someone was looking to sell told me about it and made it happen. The 4th recent one was a direct mail letter then finally they called off my post card.  Adam just wanted to show you it make take a variety of ways and persistence to find deals but there are out there. Marketing, sales, negotiating is essential to getting the leads and then you need the ability of converting those leads into deals. The 4 recent flips I mentioned the homeowners started out wanting more but we worked it out so it was a win win.

As Henry Lazerow mentioned, you can find a great deal that may not be a good rehab project and better suited for buy and hold. So you may have to look at what is the best exit strategy for that particular lead or deal. Hard Money has its place but look at other avenues as well on financing the property. I had a deal earlier in the year where the homeowner agreed to carry the note until I sold the house. His only concern was he wanted to get enough for his daughter schooling. So he didn't mind carrying the note with no interest.  

Keep at it Adam deals will come.

@Lesley Resnick Thank you for taking the time to share your experience with us. This will help many.  I have a few questions that could be even more helpful for those looking to start or implement the Brrr strategy in 2019. Can you mention all together the things you would tweak in the process or do differently now that you can look back on it? Its great that you documented everything can help newer ones to see the changes and why you made some of the changes. Such as your original goal was 3/1 with rent 800 appraisal 75k but you ended with 3/2 126k with rent of 1,000. You were able to adapt to different circumstances and had the money to do so. This was good to see because this happens often and we have to be able to be problem solvers or plan for unexpected changes. 

 Other than listing the property what other avenues do you use or plan to use to find the right tenant?

What about this loan that made it the easiest one that you done? 

Thank you again Lesley

Welcome to Bigger Pockets @Brysen Kelly! Lot of great info and people here. Check out the webinars full of good content. You can go to meetup.com Type in TRIG for next meet up in VA Beach. or Preia for Hampton area. Feel free to reach out anytime.

Hey Sorry for delay @Ben Lobaugh, @Yaneli Amparo, forgot about this thread. I was air tight on my documents and consulted with attorney and had a back up plan. But things turned out better than I could expect. I sent a gift card, letter, and huge gift basket to them both. She called me back thanking me and wishing me the best. She mentioned that her lawyer told her it was best to work things out with me and may not be worth pursuing. I believe this to be due to the proper documentation and the cost they would of been faced with. She also knew it was the right thing to do. 

The house was a burden to them that was something that was mentioned to me and he made previous attempts to sell it. I help them move all the stuff out took some fixtures down installed storm door, I had did a lot to help them so when the wife came back with wanting to take the house back and get money out of it I was shocked. I didn't see it coming. I could only think maybe something dramatic changed they needed money and they thought maybe we could get money out of Chris, I thought that because he ask if he could stop by and take a look at the progress. So they seen the transformation of the house and maybe in there mind they thought here is away to get more money. But the end result was good. I paid the loan off and sold the home.

However looking back on this I was glad this happen to me as it open my eyes up even more as to what can go wrong quickly on a @ Subject to existing financing deal to no fault of the buyer. 

Most people when they think of  what goes wrong with Sub to deals the most I here is due on sale clause possibility. However there is more than that. The seller could get jealous or simply could want the house back. They could get a lawyer, file lis pendis and or cloud title. 

 If Buying Sub To its important to know fully what you are really getting into along with having the proper documentation, { I think its important to give them some money at closing when you first purchase and or paying closing, cost catching loan up  }, ability to be lawyer up so to speak, ability to pay off loan if needed whether sell, refi, ect. 

In the end it worked out good.

Congrats Leland for getting started. Continue to educate yourself. There is a lot of good info you will find on Biggerpockets on that subject. You can join meetup groups in your area, there you will find other investors and some lenders as well. Perhaps if you find a good deal you could partner up with a more experienced investor that can put up the money. Look at your inner circle, friends, family, associates ect. I started with my first fix and flip with a community bank that I was referred to by a friend who was a experienced investor. Usually lenders want to see how many deals you have done, how much skin in the game you can put in. Therefore it may be wise to continue to educate yourself and try the other means first i mentioned above. As Daniel Molina mentioned you want to know and understand numbers, terms and try to meet with other investors. Look at the webinars here on this site lot of great content.

Wishing you the best, Feel free to reach out anytime. 

Chris

Welcome Breon. I rehab for flips also and buy hold. I also wholesale,  Feel free to reach out if need help or a push to get rolling. 

Hello Tiffany, you can also join Preia by going to meetup.com/va-preia. The next meet up is Dec 13th at 6pm at 55 Town Center Way Hampton. That is the Peking Buffet Restaurant.