All Forum Posts by: Jonathan Orr

@Angel Dejesus I appreciate the help. Let me ask another question if I may. Do contractors usually take down payments up front? I have been talking with a friend who is a big developer and he said that for a semi-large rehab or new construction that the contractor should be starting work and buying materials themselves. Then after work is completed you then request the draw and reimburse the contractor. He was saying that since a contractor usually marks up the price of materials anyways that his contractor has funds set aside to get started then like you mentioned you get the draw and everything is basically even. Is that normal?

@Christopher Goldie I appreciate the help.  Let me ask another question if I may.  Do contractors usually take down payments up front?  I have been talking with a friend who is a big developer and he said that for a semi-large rehab or new construction that the contractor should be starting work and buying materials themselves.  Then after work is completed you then request the draw and reimburse the contractor.  He was saying that since a contractor usually marks up the price of materials anyways that his contractor has funds set aside to get started then like you mentioned you get the draw and everything is basically even.  Is that normal?

Hello all. I am in need of some help. I have a few properties that I am rehabbing and one property that I would like to build on.

I have been talking with banks about construction loans with fund controls. However I am a little new at the rehabbing portion and I am wondering about how I go about the draws. From what I can gather is that if I have a rehab project that lets say costs $50k. I have a contractor draw up a bid that has each cost involved (I am right that a contractor does this?) then I provide that to the fund control. However I am learning that I need to come out of pocket again to buy materials and have them installed and then I am reimbursed for this. Is this typical and standard? is this also how a new construction project is?

Basically, if I put $50k into a rehab fund control do I then need an additional $50k to go then be reimbursed?

Any insight or guidance would be helpful. This is in California FYI

Hello all. I am in need of some help. I have a few properties that I am rehabbing and one property that I would like to build on.

I have been talking with banks about construction loans with fund controls. However I am a little new at the rehabbing portion and I am wondering about how I go about the draws. From what I can gather is that if I have a rehab project that lets say costs $50k. I have a contractor draw up a bid that has each cost involved (I am right that a contractor does this?) then I provide that to the fund control. However I am learning that I need to come out of pocket again to buy materials and have them installed and then I am reimbursed for this. Is this typical and standard? is this also how a new construction project is?

Basically, if I put $50k into a rehab fund control do I then need an additional $50k to go then be reimbursed?

Any insight or guidance would be helpful. This is in California FYI

Hello all.  I am in need of some help.  I have a few properties that I am rehabbing and one property that I would like to build on.

I have been talking with banks about construction loans with fund controls.  However I am a little new at the rehabbing portion and I am wondering about how I go about the draws. From what I can gather is that if I have a rehab project that lets say costs $50k. I have a contractor draw up a bid that has each cost involved (I am right that a contractor does this?) then I provide that to the fund control.  However I am learning that I need to come out of pocket again to buy materials and have them installed and then I am reimbursed for this.  Is this typical and standard? is this also how a new construction project is?

Basically, if I put $50k into a rehab fund control do I then need an additional $50k to go then be reimbursed?

Any insight or guidance would be helpful.  This is in California FYI

Hello All!  I work for a Real Estate investment company in Southern California.  Our company acquires Multi Family complexes in the U.S.  However, just recently people have been sending me development opportunities for single family homes.  I have a background in commercial development however I have no idea where to start with single family build and sell type scenarios.  Especially with any underwriting or pro-forma.  Does anyone have an example of sample underwriting they use for acquiring a distressed home then tearing down to build a new gorgeous home?

Anything is appreciated!

I am a cash buyer looking for SFR property, either turn-key or distressed in Southern California. Anyone have inventory? The auctions are tough to buy at and alot of wholesalers are just scams.

Any suggestions on where to find deals?