All Forum Posts by: Justin Fox

A general contractor will most likely give you an estimated cost/sqft to build so you can get pre-approved for a construction loan by a lender.  After you solidify your house plan, you take it to the contractor and he'll get a hard bid.  Then you go from there.  They should provide a breakdown sheet with their estimated costs for each construction category.  That will give you a more realistic budget and you're responsible for staying within it.  A contractor gets paid by the sqft of the job or a % of the bid price typically, so they won't care if you spend 8,000 on a tub versus an entire plumbing and marble budget of 4,000.

You should have an idea of the appraised value before purchasing and renovating.  Stick to the quality and finishes of alike, SOLD comps and you'll get a good, accurate appraisal within acceptable margins.  If you go above and beyond the comps on the renovation, be prepared to not get paid for it at closing.  If you have the power, you can kill deals until someone brings money to the table.  In this case, however, I doubt you want to pay for multiple appraisals.

If their previous two landlord referrals came back positive (payment on-time or fulfilled any late fees when/if late), I'd probably do it.

Get with a professional.  But if she signed the lease and application agreeing that she has no pets and will not have pets on the premises, she could be in violation of the lease.  If this is the case, you can get rid of the puppy and its owner.

An addition would most likely be considered an improvement, not a repair/maintenance, so you'd probably just add it to the property's cost basis.  This would most likely reduce a gain (if sold) down the road, and increase your depreciation deduction annually.  You might be able to finagle some of the expenses to be deductible, such as paint materials and etc.  But for the most part I think you'll just have to treat the majority of the expenses as an improvement.

Most CPAs don't charge too too much for a consultation.

I've done the one-time pet fee and it's good as long as they don't stay longer than 2 years.  If they rent any longer, you're getting boned by the long-term grossness of pet ownership.  I've since done a smaller upfront fee (~200) and a monthly charge of ((Rent/30)/2) per pet.

Which would you prefer, as a seller?

If I came to you and told you that I'm going to pay your asking price, in cash, and that I'm going to waive inspection and appraisal contingencies.  Oh and I'm not bringing a realtor to table and I don't need help with closing. 

VS

My realtor putting in an offer to you for 10% less than asking with home inspection, termite inspection and appraisal contingencies.  Oh and I'll also need 1,000's of dollars back at closing because I'm broke.  Oh and after the inspection I'll hand you a 5 page list of light bulbs changes and weekend honey-do's to complete.  Finally, after the appraisal comes back I'll ask you to come down 1,000's of dollars in asking price because some appraiser that lives in a trailer hates success.

Cash offers with only survey and title contingencies can/may close much quicker and are much less painless. 

That's why you always, always get a material list and buy it yourself.  Not only can you shop around, but you're not charged the customary "shopping fee" by contractors.  Then you simply get a labor bid from the contractor/sub.  Go on any local for sale and homes for rent/sale pages on FB and let people know.  Leave a complaint on the BBB.  Don't know much about NJ, but if there a registrar of contractors make a complaint there.  If he's acting as a general contractor and isn't licensed, bonded or etc with the city, he could be in violation possibly.  File a consumer complaint with the Attorney General, they could have ongoing fraud cases with him already.  Finally, file suit.  If the amount stolen is really substantial, use the courts.  If you have an attorney friend, get him to send him something official with a letterhead to try and get him to settle, because you don't want him finishing anything.  Could always sell his tools on FB too lol.  Keep your posts complaining about him factual, not emotional.  Simply state what he said he would do, what he didn't and how much money you gave him.

You could always make a 'Dishonest Contractors of Jersey City' FB page and put your complaint and their name/LLC. Share the mess out of the page and that will allow others to enter information and the contents of a page are easily searchable by others. Maybe get with an attorney first so that you don't slip into any type of defamation. But saying your going to do something, taking someone's money and then not providing the agreed service is dishonest.

Justin

Also,

This is a huge phenomenon on FB regarding food establishments.  Having a very transparent and accessible way to make complaints about restaurants has really changed local restaurants and their attention to their establishment's cleanliness, food quality and customer service.

Finish work is the most important part of the process.  It's what sells the home.  Unfortunately, it's far too easy to pick up a paint brush and say that you're a painter by trade.  If it were me, I'd fire him and not pay him.  I'd use that money to find a more capable painter.  Your job is to pay $$ for a professional service, not help teach them how to do their job by trial and error.

Message the old man and buy the house.  Have it tore down and hauled off.  Now you have a bigger yard.
Ask him what makes per month and if he has a mortgage.  Make him an offer that lets him walk out of closing with 10 years of cashflow.