All Forum Posts by: Jonathan Orr

Hello all!

I am looking for a new project management software.  I have used MS Project in the past for bigger developments.  However I am looking for one that I can tailor for residential flips.  I feel that MS Project may have a little too much depth for a simple fix n flip.

Any recommendation (hopefully free) on software or templates you have used in the past for residential fix n flips? Looking for it to outline time frames that I create and sort of track what is being completed for the project.

I am looking to rehab a home (purely cosmetic) in Los Angeles County.  I have been doing a lot of research about costs and I will be getting bids from contractors. It will new kitchen, floors, redo bathroom from head to toe, maybe new plumbing if needed.

However I am really trying to find a estimated cost sheet so I can develop better estimates when looking at properties prior to getting bids from contractors.  Is there a software or templates that can give me general costs (specifically for CA) for rehabs (pricing for flooring, cabinets, etc...) and/or if there was a thing showing typical markup that contractors use so I can gather my own pricing and pad it with markups.

Any suggestions? Thank you in advance

@Richard Raghoo are you finding the properties or is he?  When I manage or develop a project there is always a "development" or "project management" fee.  Reason that is normally charged is that you are dedicating many hours to the property as you fix it or do what you are doing.  With funds, once the property is bought they have little hands on with the property.  

With financial partners they should be getting a lion share (he who has the gold makes the rules) so in turn you should have your time be valuable and charge a fee for that.  For big deals I can charge anywhere from 2-5% of cost, or for rehab deals I have seen people charge 7-10% fee.

Now take in mind that since you are the contractor you should have a pad in there just as if you were hired by someone just to do the work.  If you have that in there then I think a project management fee is harder to explain.  However, if you are doing it for cost and the equity on the back end, I would say to charge that fee.

@Vy Mai, do you find that your property is significantly overpriced compared to others in the area?  Zillow has good guidlines to grasp an idea of rents but the price should be determined on what is moving for the area.  Also you need to make sure that rents are comparable for your property.  You don't want to charge a price that someone would pay for a unit twice the size for example.

With any property I have worked with to hold for rental income I always find it is easier to use an agent or PM for the area.  Yes they will charge a fee but I find it is better than waiting and having the property making no money at all.

@Edwin W. it is always possible to wholesale commercial properties.  By knowing how to structure the contract so you will have no issues, I know developers that will look at deals if they feel it is financially feasible regardless of it being wholesaled or not.  You just need to have the right market to target and make sure you can get the commercial deal to the right people.

Good Luck!

@Geo Tan is correct about the SFR vs Multi situation. Typically if a property is rent controlled it stays with the property no matter what. Even if you tear down a multi family complex and build a who new one (I was looking at doing that in Santa Monica). But if they say it isnt since it was just an addition I can agree that it raises a red flag with proper permits when it was built.

You are correct that they may consider it "new" since it was rebuilt but the city may view it as a remodel.  My recommendation is to go to county records and/or call the local planning department for the city.  You can pose your questions and concerns about the property as a potential buyer and they will guide you to the right information (it is already public info you can track down so don't worry about going around the agent or seller)

@Tommy F. I think @Rich Baer has a great idea.  Or if you have the funds you can pay them now so you don't have to worry about splitting funds on the back end.

However, my question is how much will utilities to site improve the land value?  If you have a property fully entitled or zoned for a desired use, will the cost differential be that much greater with utilties than without compared to the money and more importantly time to get the sewer in?

@Jonny Miller lets connect

Hello All!

I have been researching more about direct mailings to owners. I have done some direct marketing in the past with SFR for rehabs or long term rentals. However I was wondering if anyone has done direct mailing for commercial properties or land?

The company I have used for gathering owner information focuses only on SFR and I was wondering if there are people out there that gather data for commercial properties or if people have done it in the past focusing on commercial/land?

@Manuel Yepez

The creative financing options are exactly what you want to "get around" in your credit.  Lease options or seller financing (depending on the structure) can get you into a deal without even running credit or a lot of the paperwork that happens with lenders.

It depends on the deal and working with the sellers on how you can both benefit.  It takes a lot of time and negotiations but it is truly possible with the creative financing scenarios out there.