All Forum Posts by: Phil Brannock

Matthew -

A few things to consider when doing a full renovation. The first is always going to be- will it be worth it? The ARV on the property has to be able to support it. I assume that you have done a basic evaluation of the property to determine if it is profitable, so the next thing to do is bring in your contractor. Some items are a static cost that don't change, but in a renovation like you describe, the big factor is going to be labor and material cost. If you haven't done one before, getting a contractor that you trust to 'price' it out for you can save you a lot of time and effort. Talk to your local builders too, they are familiar with building a brand new house from the ground up, and may be able to give you a good estimate. Different markets have different details, but on average, I have found that a solid renovation is about 80-100 bucks per square foot. Keep in mind that this is using builder grade materials, so finer details will cost more. A lot of it will depend on some of the 'final touches' that you add to the house. Good luck and I hope this information helps.....

Paulette -

That is a terribly frustrating moment, and I think we - even the men- have all shared in that experience that you talk about.  However, a few things to think about in your contractor search:

1- what is YOUR tried and true method that you are using to bring in these contractors in the beginning?  This can be the most difficult part, since initial impressions can make a huge difference in the type of contractor you attract to your project.  Is it just a guy walking around the home depot, that you came across?  Is it from a local web page like thumbtack ( which I have used) ? Or, are they referred to you by other folks who have used them? I recommend using the last option, even if it is just a neighbor who thought they did good work...

2- if you reach out via an advertisement, like craigslist, or thumbtack or angies list, have them meet you at your project and have them provide some basic info. Licensed and insured?  Great handyman, but doesn't have a license?  Two different types of folks right there, and that doesn't even START to touch the gamut of contractors, so get folks who are doing this for a living, not a side job.

3 - Next, but most important to me, once you meet, take a look at their truck. Is it barely getting there , smoking and dirty, no advertising, maybe a magnetic sign?  Or is it clean, tools look used but cared for, and the person has a professional demeanor?  Also, once you find a guy that you can count on to show up, ask him who else he can refer to you for other projects.  On that note, if you worked with folks in the past that are too busy for your current job, find out who THEY would hire or recommend to you to hire, if the job was outside their specialty.

4- And lastly, reach out to your other investors in your area - REI groups, trades groups, etc.. and meet some of those folks. Trades guys know each other usually, especially the good ones, and they talk about how to improve their business all the time. Find out what time the guys show up in the morning at the local HD , and talk to some of them about your project, and find out who has a good rep from the pro desk.

These are a few things I use to 'vet' my contractors, and it has worked for me so far.... good luck in your search....

Sounds good, and continued success to you.. I am a new investor, just signed a contract yesterday for my first rehab in Michigan, so here's mud in my eye! Lol, looks good for now pp-170 w/ contract repairs are 20k... ARV is 300k

Angie -

House is on a hill, so the first question that pops into my mind - is the hill natural, or added to the land by bulldozing the topsoil to create it?  Heaving and cracking of most foundations can be due to 1) movement of the land and house, or 2) water that freezes into the spaces around the foundation.  If it is a water issue, some careful correction of the landscaping can allow you to fix the issue.   You can see some basic info here  -

http://inspectapedia.com/structure/Concrete_Settlement_vs_Frost_Heave.php

BUT, the best way to truly know what ails the property is to get a qualified inspector to that property and have a look.  If you do that, I would also recommend that you write some language into your contract to allow you to leave the deal in the event that the problem is more money than you want to put into it. 

Well, I didn't hear back on which BW's the meetup was, SO- if I threw out an invite to have a group of us meetup, is anyone here that answered interested?

Lima one is a sliding scale PML/hard money lender. So 0-1 deals with them, you pay 11.99 + a 3.5 origination fee for the first deal....then, the next 2-5 deals, you get 3% origination fee + 10.9% ...after that you get 2% + 9.99.... is not too awful for hard money, and no upfront points, as well as 70% LTV based on ARV..... Asset avenue is 75 % = 100% of rehab, BUT they have some hidden costs they don't talk about in the front side - they require 3 points, and they only reimburse 10k at a time for the rehab. Also, they require an inspection before 10k is disbursed, with is another 250$ per inspection, which can add up if it is a big rehab.... I haven't used them myself, I have used lima one....just wanted to mention them, if it works for you as a investor, sometimes you just need the money......

I have a network of a few, but the best way to meet real estate agents is to talk to anyone that you know that might be one, as well as attend some of the REI events locally. There is a Thursday event on the 17 of November that is at the Club Venetian Hall in Madison Heights

Hi there!  I'm in the White Lake area, real estate investor looking to meet the local RE professionals also!

New investor here, picked up a large contract that is going to require floors, bathrooms, a kitchen remodel and a new roof.  Upside is nice, great area, but now I need more done than I think a small one man or two man GC can really knock out in my time frame.  Anyone know a good construction contractor in the area , that is investor friendly, looking to do 6-10 projects, that can lead to more if the work is good and the price is competitive? Would prefer referrals from the group over just hiring anyone......

There are a couple of sites I found useful for my deals, here are the sites

limaonecapital.com

assetavenue.com

They have simple online applications, and you can get funding for 75 or 80 percent of the purchase, and 100 percent of the rehab......