All Forum Posts by: Luis Marcelino

Rich,

thank you for the feedback. I certainly agree with you but you are mentioning things that are not hard costs. The soft costs can be handled aside. Strictly speaking of the construction, including excavation and foundation work, one should be able to conservatively average out what it takes to build one. At least commercially, which is what I do, one can do that. I k ow there’s a tone of variables, including materials, schedule, etc. 

But generally, I think one can put a cost to it. For example, my first flip of an existing triplex we averaged $75/sf in West Philly. However, that was 2 years ago long before the true impact of the supple chain on construction. 

Any thoughts on what you are all seeing right now for triplex new construction in the city? Any thoughts on the average $/sf. Construction includes full underground level. Lot is undeveloped at this time. 

Hello BP! I am in the Philadelphia area and looking at some properties, but I am in a real need to get some general contractors point of contact. Anyone worked with a few good ones. We are looking at rehabs in the 35K-60K range. I would really appreciate the help.

@Brandon Sturgill, Thank you so much for your detailed and valuable input. I appreciate the information and the illustration. I’m trying to do things the right way. I have read too many posts, articles, etc about things going South for no reason. I’m very thankful for your input.

Originally posted by @Brandon Sturgill:

@Luis Marcelino I manage multimillion dollar capital construction projects, so using an architect, engineer and professional construction cost estimator is standard. For my own reno projects, it took years to learn accurate construction costs and assemble a scope of work. I use a database now and can routinely get to within 5% of actual costs on about any reno project...but again, it takes time.

One thought is to interview multiple contractors and get bids. 3-5 bids should show you an appropriate range for the work. I would not automatically select the lowest, but seek value and craftsmanship. I would also be sure to ask for proof of insurance or a bond...referrals, images of past projects, etc. Remember, you are the boss and this is your project and your money. A good contractor will understand this and have everything you need to make a decision to proceed. 

One last thought would be to use a virtual assistant to call and vet contractors...I use UpWork, but there are sever VA firms that could do it...pay $50 and come home to a nice tidy spreadsheet with contractors information awaiting your approval.

@Brandon Sturgill, Thank you for the quick advise. I am an architect by background so I understand the importance of it, But from a 2-4 unit rehab, I can't really speak. I am not sure if it is something that contractors can estimate based on scope, material selection and others. 

Do they really need a fully integrated set of drawings for a 1200 SF rehab? Bearing walls and other systems to remain?

Good morning all, 

How is everyone approaching the rehabbing of a property? How are you getting your contractors to price with accuracy? Are you hiring an architect? How much is that usually? 

Additionally, are there any GC suggestions in the Philadelphia area? 

I would love to pre-qualify some general contractors and architects? 

I would appreciate the input.

@Daniel, Foresight Business Solutions is who I use. They are very knowledgeable and can definitely help you out.

Hellow Everyone!

I recently partnered with my father and formed an LLC to keep things straight from a Legal standpoint. I have been in contact with a Real Estate Agent in the city of Philadelphia about what I am trying to get in terms of property. My partner and I are looking to get our first property under contract, but given the age of our LLC we are having a hard time finding a lender that would lend to us. Does anyone have experience with any lenders in Philadelphia that would deal with new LLC's? I am open to partnering with other established investors in the area to get this deal accomplished.

Let me know if you have any other questions? DM is you are interested.

Hello everyone, I am looking to get some feedback regarding the types of insurances you may be carrying to protect your LLC (general liability, professional liability, etc). That’s is on top of the insurance all of your homes have. Do you also add an umbrella liability to it? How about monthly costs? What are you typically seeing in the Philadelphia Area?

Anyone in Philadelphia worked/working with lawyers knowledgeable in real estate that would be willing to recommend? I’m looking for knowledge in LLCs, strategy, contracts, law, etc.