All Forum Posts by: Sid Leibowitz

Hello Kevin. I do not know hold old you are? I have been in the real estate, construction, architect, development industry and flip houses. It sounds like you are looking for a career and you need to have an education and then a position in an associated aspect that provides you exposure to development. It took around 30 years for my first development deal. I came through the ranks of construction. This is not an overnight whim. Its like a brain surgeon. How many years for that? Try going on line and see what university can supply you with a bachelors and the cost of that. I believe that would be the first step in obtaining a position in the industry today. This takes years to establish yourself. Best, Sid 

Not to rub it in. I only flip now. It is one of the risks of being a landlord. Your may be in a tight spot if the security deposit is not enough to offset the loss and damages. In any event the cost of recovery will be more that the money that is owed. Your tenant know that as that have a habit of doing that in the past. Just keep the security and remember to always take proper security in the future. That is a learning experience of a landlord. I once has such a horrible experience which cured me of the landlord bug. I only flip now and do not want to deal with tenants that could turn out to be crazy drug people, terrorists, gun runners and or sex traffickers. I suggest that you pick up a movie called Pacific Heights. You will enjoy that one. 

Joe's "not to exceed price" is a good idea also. I would try to have the contractor give a lump sum labor price and be aware that this could go on materials delivered to the site or is the contractor picking up the materials. How would the materials get to the site? Is there a delivery charge. Would the contractor pick them up for no charge? or a charge? If there are multiple vendors is it cheaper to have the contractor do the logistics and unloading after you pay the vendor? Also, Who will unload the trucks, do a piece count and damage report and secure materials. The materials must arrive in usable condition i.e. sheet rock that arrives broken and has to be repaired will cost more in labor or is the contractor repairing for free or rejecting and returning on the delivery if you go that route?  Some contractors charge for this. Be aware that every function and movement that requires labor or supervision comes with a cost and affects the total job cost. Be aware.    

Yes Emily. If a vendor wants to do business with you then they will check with other vendors that  supply you and how much you owe as to your credit ability and how you pay your bills. The information in your DNB gives the vendor information like your address, hidden partners and their addresses, how long you have been in business. it is a snapshot of your structure. Best

Hello Brandon. I have watched many Tiny home shows on TV and I have owned High End Bus Conversion Motor homes as well as production Motor homes. I do not think that people who look into Tiny Homes understand the value or ROI of a Bus Conversion. A proper bus conversion is by far a better investment as well as a lifestyle of mobility. It is a self contained and portable and unit that can be moved at will anywhere in a few minutes without a tow. Many entertainers and people that travel own them and they are affordable if you purchase used. I have owned five. You have everything house has and way more living space and storage space than a tiny house for the same or less money. The unit is originally custom built so it does not have a book value so you can purchase today at a great price and sell tomorrow for a profit like a house. Many do this. Some of these busses are over 3 million when new. It is like living on a land yacht. Hope this helps.

If there are inquiries from vendors to DNB then they will seek You out. Calling them for a number is not a realistic approach and then it is costly. They are only interested in you for free if someone (vendor) who subscribes is making an inquiry and they have to service their subscriber.  Otherwise, they want you to subscribe and pay ahead for a number. They do not care as long as they are making income from someplace. That does not have to be you. If someone is asking for your DNB number on an application then do not fill that field in and leave it blank. If they want your number and they subscribe to DNB then DND will assign a number to the fiile and have someone call you for your info so they will be able to service their subscriber who is paying them. I have worked for a company with over 100 corporations. Hope this trick helps.

I would ask for a contract price and not an hourly rate that agrees  with your budget and you are wiling to pay if you do not trust them. This way you do not have sticker shock at the end of the job and you are prepared and comfortable with the completed price. You should know what the finish price is. The amount of time spent appears not too important. 

Will. The lender is not your partner and they are not passionate, enthusiastic, or compassionate. They are business people looking to make a profit from the money they lend you. If you are not able to pay the loan on time then it may be that you do not have the income to make the payments based on you income analysis, based on the financials that you supplied them. They are not contractors or in the real estate business. They are in the money business. They do not want to be stuck with the property. If they are telling you no then you should listen and learn from them. There are a variety of reasons that they are not granting the loan. They are very familiar with the area, the comps, the growth, loss and reputation of the neighborhood. Everything you could imagine.  Bottom line,  if you do not pay up the loan on time then they have to foreclose and get stuck with a handyman special. They are not contractors. They are hard money investors, out to make a profit and they do not see the value in the neighborhood or structure. the risk of you paying back the loan on time vs. the likelihood that they will be stuck and have to dispose of the property at a lose outweighs itself. They are not emotional. Its just the facts. did you every watch Shark Tank on TV? This is the same thing. They just want the money back with interest and no excuses or BS. Is this hard to understand?? Think of it this way. They are telling you up front that it is not a good deal and saving you from making a big mistake. You should probably thank them. They are being kind to you by rejecting the offer. Don't get discouraged. When you find the right one they wil give you the green light.  

Most Contractor investors establish these elements as a design and budget function. Is your other half taking into consideration the cost of redesigning using different materials on every project? In addition to the time of the design and selection mode there is the sourcing and re-calculation of using new materials each time which effects the sq footage cost. Do they just want to have  new project and something to do on every project or are they concerned with the budget on every project?  Cookie cutter concept from project to project is probably the most cost effective. if you have success with vendors and factories in reliability then reinventing every project increases the time invested into the project. 

You should connect with the all the utilities, water, sewer, electric and gas to determine what services are available to the property you are considering and what the cost will be to make it into a build able lot. There is a cost to make ready and what the cost will be to supply service to the property. How long the runs will be and are they underground or above ground. If underground is there earth to be excavated and are there underground obstacles like underground streams or existing  buried utilities or even an landmark cemetery that would alert the landmarks commission to halt your project and stall or kill the plans entirely. Is there bed rock that would have to be blasted and quite more expensive than using a bulldozer or backhoe through soft earth. Undeveloped land can be costly if you are not educated in what you are purchasing to process into usable developed land. Understand the usable cost of the land. It is not always a great value after analysis as a finished  build able lot.