All Forum Posts by: Matt Lewis

@Anthony Spera -

Treat it like a loan. You can even record a lien on the property like a loan.

Record time and materials. Pay all that back plus split the profit.

Assuming you provide the property that sounds like a good 50/50 profit split after you both are payed back. You can play with the numbers depending on the deal and the partner.

@Chris Barnett - Hey Chris!

Yeah just post it on the Alabama REIA Facebook group.

Just make sure you are following the group rules!

Good luck!

@J Lee - Hey J!

It’s all about efficiency and systems.

Investors who do one rehab a year or less will have much slower project times than people who are doing one rehab a month.

I can do my own projects in about half the time as client projects.

Work with your GC and pay them for their time to help you come up with a plan to get it done as fast as possible.

Draw out the layout, schedule subs, pick out and preorder materials, etc.

You need to project manage your own rehabs until you have a repeatable system in place.

Instead of being the overbearing boss of your GC work under them as an assistant to help keep everything on track.

@Anthony Spera - Hi Anthony!

I’m a Designer and General Contractor in Seattle.

On the right deal I will fund and project manage the entire rehab as a JV or partnership.

Do not try to convince a contractor who is not already an investor to JV on your project. It probably won't end well.

It’s a good idea in theory you just need to be careful.

@Ashley Budyak - Hey Ashley!

Smart getting started early!

I would spend the next couple years getting “bankable” and educated on credit and real estate.

Talk to a loan officer at a local credit union now and get a checklist for what you need to work towards.

Study your local markets and maybe find a cheaper house in an up and coming neighborhood and do a house hack to make it more affordable while you work your way up the job ladder.

@Bruce P. - Hey Bruce!

I’m a Designer and GC in Seattle. Sounds like your friend needs an Architect. They usually go into specific detail about every element of the physical construction. Your friend can work with them to spec finishes to make sure everyone is on the same page throughout the build.

That being said I’ve had Architects mess things up and Subs mess things despite everything looking as if it’s laid out ahead of time. Communication with each Sub is key!

@Ray Jhala - Hey Ray!

Yeah we do it all the time to open up a kitchen. In most places it’s not over a certain length it doesn’t require a special permit.

@J Scott is right though. If you or any of your anyone on your team doesn’t know what they’re doing you want to be safe and just do it the right way.

@Tara Sullivan - Hey Tara!

Congrats on the flip!

Nice work pushing through the deal despite all the challenges. I know a lot of projects are just starting to recover or are still on hold!

@Sameep Kodia - Hey Sameep!

Cash flow. If the property is cash flowing you don’t need to worry about a correction when it’s a buy and hold.

In my neighborhood I’m looking for houses with unfinished basements and other potential bedrooms adds. You don’t need two living rooms! You don’t even need one in a house hack!

You don’t need to add square footage if it’s already there.

@Danielle Dieni - Hey Danielle!

Congrats on this new deal!

I’m a Designer and General Contractor in Seattle but I’m mostly just interested in JVs and Partnerships right now.

Check out Homewyse they have a pretty good system for finding fairly accurate job costs in each local market. That’s a good place to get started. Use that to build your budget and tell each Sub “This is my budget!” Don’t ask for a price!

I’ve had good luck on Thumbtack finding Subs when mine are busy.

I’d be more than happy to take a look at something for you to get more of an insider prospective!