All Forum Posts by: Leeor Neh

Thank you @Sonia N. , for your detailed answer! 

Did you use any of the project management software available? (Like these ones?).
On the one hand, it makes sense to use it. But, on the other hand, I can't imagine a constructor wanting to work with me using it (too clumsy?), and I don't care (or have the knowledge) to prioritize items. For example, I don't care if they do the floors or windows first. As long as they finish on time and the job is done well.

And, thank you, Nick! I did one remote BRRRR. It didn't go too well, and I'm trying to learn from it. Ideally, I'd have the boots on the ground prior, but I have to start somewhere. Also, living in San Diego, current 1/1 (not in a great area), costs $350K+. I don't have 50% of that in cash to do the BRRRR, and I haven't seen a property that is cash-flow positive within its first 2-3 years. So, I'm not sure if this area fits this strategy.

Thanks, Sean,

I read it about a year ago, and it was very nice. However, I don't remember any of these specifics there.

When building the team, I had to find the contractor, and as I said, I tried to vet him as much as possible; however, things still didn't work out. So, I feel that until you have done 2-3 projects and everything went fine, you still need to look for that person.

Thanks, @Nicholas L.

I ended up going there twice. To be honest, not sure if that was the most helpful thing. The money I spent on the trip will be more than my first-year cash flow, and it didn't really push the contractor to finish it faster/better.

For me, I ended up asking that contractor to stop working there, I looked for someone else to finish the major stuff that must have been done, and the rest will be pushed to a later time. So this project is done.

But I'd be happy to hear from folks here if they have any systems/suggestions to help me on my next one. Like you initially said, a long-distance BRRRR is a challenge, but as long as I learn from this experience, it won't be a complete mess.

Thanks, both of you, for your replies!

@Nicholas L., I live in California and invest in Columbus, Ohio. After my recent experience, I've started rethinking whether remote BRRRR is the right choice for me. However, investing in my local area is financially challenging.

Eliott, I completely agree, and that's precisely why I'm reaching out for advice.
Before hiring the contractor, I conducted thorough checks, consulting a few individuals, including my realtor, who I really trust. I even inspected other projects the contractor had completed and had multiple conversations with him.
Yet, what was initially projected as a 14-week job turned into a daunting 26+ weeks. Eventually, I had to terminate the contract. He didn't finish the work, what he did finish, the finishes were poor, we had communication issues, and various other problems.

Thank you both for your insights and suggestions!

Hey there!

I'm eager to hear from experienced investors who have tackled long-distance BRRRR projects. I recently had a rough experience attempting a BRRRR in a different market from where I reside. Since I don't have any close contacts who use this strategy, I'm seeking insights from others who have successfully done it and are willing to share their knowledge.

Here are a few specific questions I'd love to hear your thoughts on:

1. Payment Structure: What payment structure do you typically use? Do you pay upfront (what percentage?) or break it into sections? If it's broken down, how many sections do you divide it into, and when and how do you make the payments?

2. Contracts and Additions: Do you create contracts for all the tasks that need to be completed? What do you do if something needs to be added during the project? Is it added to the existing contract or handled differently?

3. Ensuring Comprehensive Work: How do you ensure that when something should be done, it encompasses everything necessary for that task? In my example, a "window replacements" work didn't include all the relevant aspects (that I had no idea are needed, I understood that "replacing a window" means replacing it from A to Z). In practice, I was forced to additionally pay for - inside and outside wrapping, trimming sidings, properly fitting the windows, etc. So, when something is quoted, how can I tell, without construction knowledge, that it includes everything that is needed for this item to be fully completed?

4. Keeping Things on Schedule: How do you motivate contractors to adhere to project timelines? Are there any strategies you employ to ensure timely completion?

5. Checking the work: how do you check the contractor's work? Do you send an inspector each time? It seems costly. However, pictures are easy to manipulate and make it very hard to enforce the quality.

Additionally, I welcome any personal experiences or challenges you've encountered during your projects and how you managed to overcome them.

For those who have already completed a few projects, I'd especially appreciate hearing about your initial struggles and how you persevered. Even if everything is going well for you now, I believe everyone faces difficulties at the start, and I'm determined to push through mine.

Looking forward to hearing your valuable insights and advice!

Hi,

If I use a large some of a HELOC account, for ex. using $150K out of $200K, for a few months (say 6 months). Will that hurt my credit score?

I'd pay, on time, the monthly interest-only amounts (~$600 a month). All other credits I have sum to a much lower amount (all the credit cards together ~$20K, so the utilization rate is very high)

I just recently heard from someone that it can destroy my credit score (currently around 760).

My plan was to buy a property using only the HELOC money, rehab it, and then do a cash-out refi.

The concern is that if this can hurt my credit score, then the whole plan is trash, cause I won't be able to do the refi with bad credit.

Thanks! 

Thanks Chris.

@Loic, thanks for the feedback! 

Thank you @Loic! Any idea on the time frame for desk appraisals?

@Caleb, thanks. I don't work with an agent since it's an off-market deal. Besides, the agent will only be able to look at MLS properties which are all posted on Redfin/Zillow, etc. no? (no disrespect to any agent, only trying to understand better)

Is it possible to contact appraisal people (or someone else; no idea who) and ask for a "soft appraisal" based on images and current known conditions, but without them going to the property?

By "soft appraisal," I mean to get an estimate of how much the house is worth/would appraise if I'd do XYZ to it.

Basically, I'm looking to get an experienced view (as I'm a new out-of-state investor) to know what the house could be worth. 

I'm looking to invest in TX, and I don't know the area that well. I can look at Zillow or any other websites, but I don't know how much the information is worthy from an appraisal point of view. So the way that I see it is that I prefer to pay someone $200-$500 to validate my price hypothesis. 

* I'm not asking for a specific person, as I know this is not allowed by the forum's rules. But I only ask to know if such a thing exists 

Thank you @Charles D.!