All Forum Posts by: Shane Ward

My son graduated college last year with his MBA and had 20k he wanted to invest. I was full on with learning a lot of strategies to use at that time so I opened an LLC, took out a HML for two properties to BRRRR and a HELOC on my primary to buy a third property to also BRRRR. my son put in his 20k for rehabbing the one property. Now we are ready to refi out of all three and my credit score took dump because of credit utilization ( I'm at just over 610 on the Experian site 90% utilization). Could or should I add my son to the LLC as a partner to use his credit score (740) to pull our cash out?

@James Canoy You can try not giving a contractor money, you can  give them 100% in full, if you get the wrong guy you can get screwed. My suggestion is to get references and check out other jobs they've done. I have a guy right now that doesn't ask for money and he never shows up. I'd rather give a good contractor a deposit so that I put demands on him if needed. 

@James Canoy How is contractor supposed to trust an investor. I've on both sides and screwed both ways but I still pay guys and give them a deposit to show I'm serious and that I dont Intend to screw them.

@Jared Smith When I had my flooring store I used an attorney. Depending on what you are doing you're contract should be project specific.

@Michael Noto I had a twelve page contract with pay schedules, deposits, warranties etc. with a company that someone I knew for 10 years was running and it took me 8 months to get half of what I was owed ($18k) as a flooring contractor. I would not work for anyone that said they would not take an equal risk as me. I'm out of the business now for those exact reasons. I am an investor now, but I also know investors are terrible to work for in general. If you are a good contractor you dont have to take more risk than the customer. If you dont trust your contractor, dont hire him.

@Matt Michaelson I agree. I don't know any contractors Thursday will work without money up front. During and after the crash (2008) contractors where getting stiffed left and right (I had a flooring business for 30 yrs) including me. Good contractors wont work without getting money to start a job. Breaking up the scope by projects is your best bet.

@Scott Garber I own property in Carbon and Monroe counties. im looking for some good meet ups. Any suggestions? I will be attending one in Allentown on 5/16 but have not been to one yet. 

@Gregory Hiban I agree with all of what you said there. I just don't agree that the Poconos is one of the worst areas in America when it comes to appreciation. There are better markets than Philly as well.

@Gregory H. This thread wasn't about comparing Philly to the Poconos. I know Philly is a hot market. You are saying that the Poconos are a horrible area invest in based on a personal investment. People are making money in the Poconos all be it at a different pace than Philly is. 

@Gregory Hiban If your family bought the Pocono house before the crash (2008) you will not see the appreciation other places have. I have lived in the Poconos the past three years and own 4 properties that I forced appreciation on but have also seen everything around them appreciate. I live in one of the communities that have a lot of STR's and they rent all year round. The rental market is great LTR's as well. Monroe county is going to be reassessed because the rate is double that of the next highest tax rate ( they are looking to reduce the tax rate). IMO the Poconis are a gold mine if you know what to look for. Who goes to Florida in the summer when its 150 degrees with 100% humidity?