All Forum Posts by: Luke Sass

@Dana Winer

Yes if their a reputable contractor they will have the gl and a comp policy. Mitigate your risk with a written contract. You can also buy a builders risk policy while the property is under construction but it won’t protect you against them getting hurt.

Tell them you want to be named as additional insured in their policy and have them send you a copy of the certificate showing that.

Best of luck

@Hoyoon Chae

Have you thought about a HELOC would that be an option, you'll pay more for your money but you only pay interest when you use it. Some people enjoy the flexibility.

Best of luck

Luke

@Deborah Repaskey

If there’s one thing I’ve learned it’s better to take a month or two of vacancy to find a quality tenant then rushing to fill a property with questionable tenants. If you really want to rent it to them have them put and additional security deposit or get a co signer on the lease.

@Steven Gesis

Love the question I think everyone tackles this question as to how they might increase their NOI

Have you tried the bulk internet agreement ? It’s a good way to make additional money off of something your tenants are going to have anyways. Comcast and other providers let apartment owners buy internet/video in bulk so you can resell to tenants at or a little below retail. It’s usually good for $10-$40 per unit each month if you set it up right.

Car wash station is another where you have a dedicated spot with water and power and sell cleaning supplies/rent a Vaccum

Have your tried renting out your model unit as a short term rental as an amenity for tenants that have family visiting and don’t have the room to accommodate

@Paul Sassin

Paul,

I’m not sure where your building? but our here in Washington the local SDC/impact fees play a major role in the feasibility of any development.

Have you checked with the local building dept (it’s usually in their website as well)

-park impact fees

-traffic impact fees

-school impact fees

-per unit charge for sewer/storm

-check if you have room onsite to meet the required parking ratios (1.85-2 spots per unit is required out here)

-check your phase one environmental as see if you’ll run into any issues on the property by expanding the footprint.

Hopefully your building in an area that welcomes new development and most of these don’t apply.

Best of luck to you.

@Charrand Jones

Theres a ton of content in bigger pockets regarding this issue. It really depends on your tolerance for risk, there are other options such as an umbrella insurance policy or a land trust. I’ve never done it but what I’ve always thought is that if they do trigger the due on sale clause what’s to stop you from quitclaiming it back into your own name?

See below for one thread but you really need to evaluate why you want to do it? That might not be the best option to mitigate risk.

https://www.biggerpockets.com/forums/311/topics/453747-due-on-sale-clause-question

Best of luck

@Vincent Gizzi

I would market that property yesterday. Make sure you have a solid screening process and schedule your showing for a couple days out. It’s better to take chance on finding tenants that can see past the renovation vs having it vacant for a couple weeks.

Thanks

Luke

@Tom Port

Stick to your numbers as everyone has a unique requirement for what they can operate for and what they expect for a return. I wouldn’t put any trust in consistency of local listing prices to use a blanket % of list. Find some reasons why the listing is overpriced and make clean offers with less contingencies attached and you will likely see some success.

I think quality of offers is better than quantity, aren’t there a lot of institutional investors companies trying that strategy of buying large quantities at slightly below list?

There's many strategies such as finding properties that are stagnant on MLS and low balling but my favorite is still an old fashioned hand written letter saying "I want to buy your house" your response is only 1-4% but nobody else is fighting for the property.

Curious to hear what works out in AZ? Keep us updated

@Bill Coleman

You need a local wetland consultant who is familiar with local jurisdictional requirements. Typically you have wetlands and then you have a buffer or setback from the boundary so even if your property isn’t in the wetland it might be in the buffer as not a buildable site.

Your consultant should be able to come out and stake it out for you and deal with the Army Corp regarding the boundary and if it’s anything like Clark County out here in Washington I wouldn’t expect anything to happen quickly.

Best of luck

@Jay Bob

The answers below are spot on you should focus on value not price. But it also depends on how organized you are, if you bring detailed records to your CPA and they can your taxes, account for any depreciation, possible deductions easily then it might be cheaper.

If you bring a shoebox of receipts and little to no records and want the CPA to be your bookeeper maybe they aren’t charging you enough.

Thanks

Luke