All Forum Posts by: Joseph B.

@Rick Baggenstoss and @Brandon Siewert Thanks for your input.  I have a GC in MD that doesn't take any money upfront and that is great.  This is too far away to use them.  So, I'm trying to build a team off of referrals.  I just don't know what the norm is and thought I'd ask. It is starting to look like there isn't really a norm.  

@Mike F.  yes, I have done a fair bit of background checks/research and have a project manager that has seen his work on other projects.  He is license, bonded  and insured.  I am contractually requiring this as well as workman's comp. although I haven't seen proof of WC.  So, I do feel fairly comfortable with his work.  

I just worry that if you give someone a big chunk of money then where is their incentive to perform.  

@Account Closed Thanks!  Its good to know that other GCs are following a similar pattern.  I was hoping to use a cost plus contract to keep better control on the costs.  I would pay the GC as work is done and he presents the receipts for the work -- rather than in big chunks where it is harder to see what I've paid for,  It seems like giving him a big chunk of money up front kinda defeats that purpose.

I've got a property that requires a pretty major rehab (asbestos siding, and needs new electrical, plumbing, HVAC, walls ....).  I have a general contractor that I think will do a good job.  I wanted to do the work as cost plus.  He is fine with that but wants 30% of his estimate up front.   That could be $30K or more.  It's not that I can't fund it that way, it just seems like I'm giving him an awfully big chunk of money without having anything to show for it.  

I understand he needs funds for supplies, etc and that gives him a bucket to work from, but does he really need that much?  I guess I'm worried that if I give him the funds, I have no way of holding him accountable for those funds.  Yes, I can refuse to give him any more money, but that is still a lot of money to potentially lose if something goes wrong.

What are your thoughts on how much to give a GC up front?

My opinion of Toronto is that it is massively over-priced.  Having family in Toronto, we looked at investing there, but just couldn't find anything we didn't think was overpriced by a lot.  For prices to keep appreciating, incomes have to increase to keep pace with the increased cost of the mortgages and interest rates have to stay at historic lows indefinitely.  My personal opinion is that when interest rates eventually do start going up (and they will - sooner or later) people will no longer be able to afford the high housing prices they currently have.  That will lead to some degree of market price adjustment.  But, that's just my opinion.

From a hold and rent perspective, the rental market is great there.  

@Gilberto Guel 

I've seen 1 or 2 in Manassas.  There really aren't very many around north of Fredericksburg.

-Joe

Hi @Gilberto Guel 

Welcome to BP! I'm a Northern VA computer guy investing on the side too. Northern VA is painfully expensive. I've been looking out of state. If you've got family in Houston, that's a great place to start. I hear the Houston market is very good.

Good luck!

Joe

Hi Lamont,

That sounds frustrating.  Honestly, I have a few BP colleagues that I keep in contact with and several that never really went anywhere.  I think life is that way in general.  I have a couple friends from a job 10 years ago, but several others that I have contact info on but we never really kept up.  

However, Lamont, I'm going to reach out to my BP colleagues today, especially the ones I've neglected. 

Thanks! 

@Ryan Jackson 

Thank you for your service and welcome to BP.  Elizabeth Colegrove seems to do a great job of managing her properties from a distance, so it is do-able.  

Good luck!

Hi @Kurt Africa 

Welcome to BP!  Someone you want to talk to is @Gary McGowan . He is a real estate investor/real estate agent in the GTA. I think he also runs a REIA.

-Joe