All Forum Posts by: John Patterson

@Jim K. I think a contractors mindset , to the view of an investor, could open up the realities of what must happen to get from point "A" to point "B"on a deal. In this business. Its seems general contractors are the preverbal punching bag as to what Detroit is too investing. Sorry, you can enjoy the pain of the Flipping/Rehab experience , or you can pay to avoid it. It's even more surprising how many people are attracted to this experience as a means of catharsis to escape the stress of there w-2 grind. Unfortunately, when it's your career... you go to blogs and social media as a form of catharsis.

When 1 door opens ....another closes!

The market is slowing down.

(At least with owner renovations and buying. )

With the bump in interest rates, people will slow down borrowing until spring and summer. That extra 100$ a month on a loan will deter many from a deal. Confidence is down and distractions are high this time of year. 

The distraught will sell reasonably, but they are not easy to find . I’m going to buy if the math works and the area is growing. 

It’s a bit early , but north Florida may have some deals coming up. 

if it’s multi family and earlier than 1978, they are probably wanting to verify mold, lead and asbestos. The EPA has been getting tight about that , I’ve never heard of a lender requesting it before. 

On the subject of windows, As a remodeler and renovator,I 'd get the measurements, see what type of windows are next door (approxiamate vinyl or wood type) and call a window supply company for material and turnkey price, if they do such. The Labor is tough because time is money, also if the windows are rotten thru, the structure is probably compromised underneath as well. If the Sashes are bad and the sills are good, i'd get inserts or sash packs if you are tight on cash. Lastly, double pane windows are usually overrated in renovation because the payback is usually 10-15 years as flashy as they appear. Single pane windows are fine provided they don't leak air (check to see if they rattle). 

Aesthetics help to sell ,but you can shop this cheaply by the square foot. If I'm buying, I will check the roof and foundation first. Look at the mechanical systems. Damage in these areas will start a talk or a walk.

IN 2007, My partner and I closed up the renovation business that was strong for 20+ years. We shut their doors then started our own. 

They were too stretched and could not change direction. We were small but hungry. I had managed construction projects,  but I have never sold a remodel before. 

Through talk and hardwork we applied what we knew, scaled down and started selling ourselves .

It hasn’t been easy but we have a company that is efficient and streamlined. 

Now it’s time to pursue new investment avenues. With today’s resources, anyone can be successful if they are persistent and dedicated. 

carpenters work well with wood and money, not typically people. 

keep your tenants close, keep your contractors closer. 

Now that’s some LL Leadership. Doing what must be done for what is right. 

What’s with deposits?

As a contractor , I look at the end in mind. 

What is the time frame in the proposal ? 1 week , a month, or 6 months?

30% down is fine if materials are needed to be ordered in advance and the job takes only a week. 

You may be 50% for materials on a 1 week job. Get paperwork on orders for your money. 

On a 6 month job, I’ll request $20,000 down if high ticket items are needed in advance. 

Then again, I’ll set targeted milestones during the course of the job ( shown in a calendar of events) to give the clients a vision of how the job should proceed. 

Big renos. Are spaced out for approximately “ 2 week” increments (yes, the famous construction time period that contractors are known for.) If I don’t complete that milestones, thenI don’t request $ until we do. If you don’t pay, then I go home and the job stops. 

My initial construction contract signing is 5%. This is for your trust and obligations. At this time in the pre construction period, I may have given you 40-60 hrs of my “free” time to arrange this proposal.