All Forum Posts by: Sue Hough

I believe this has already passed??

@Kumar Gaurav…I am not sure how to predict if you could time everything perfectly would that positively affect the value of your property?  In Chicago I would say “it would not”, but your locale may be different.  It is all speculative and there is no way to know, so go with your timing

@Christopher Davis I would strongly recommend contacting your attorney. If his agreement with you is only right of first refusal, you’re under no obligation to sell it to him only offer him the opportunity to make the best bid on the table.

Good luck

@Kumar Gaurav you pose a very thoughtful question. Historically in the Chicago area new home construction next to an existing 15 year old home will make the older home slightly less desirable. I don’t know if this is true in your neck of the woods, but I wholeheartedly agree with @Scott M. and @Tabitha Brickhouse. Move on your terms without any assumptions regarding the new construction next-door.

Good luck

@Noah Lomax hello and good morning.  As a builder in the Chicago market for 20+ years, this is not uncommon.  Chicago Title is notoriously the most difficult, but not by much.  What the title company is requesting is standard of the industry and I navigate this process weekly.  I typically request using Old Republic Title, as they are very efficient and are willing to see the practical side of construction without breaking the rules. You, most likely, can request which title company you want to use.

Once you get accustom to the process, it is really not that difficult and you will not need receipts of every small purchase. A simple "materials on hand" noted in the Waiver portion is adequate for small items.  You will need waivers for any and all materials delivered to your property as the supplier has "lien rights" as long as they deliver.

I have a full packet of documents you will require to navigate the Construction Loan process with a title company.  If you like, message me and I can send it to you and walk you through if you like.  These documents were the crux of my speech I gave at the Bigger Pockets Conference in Nashville 2019.

Thanks and good luck.

@John-Michael Pauze I would definitely recommend taking the position which would give you the most construction experience. If you’re going into real estate investment a working knowledge of construction is, in my opinion, the most valuable skill after a strong acquisition. Good luck!

Congratulation!!!

@Mark Gaskins as several fine folks already mentioned, do not assume you will loose your EM.  Talk to your attorney, this may not be as bad as you think.  But, even if you can’t get your EM back, walk away mostly because you are now fully aware of the asbestos in writing you can be liable to the tenants.  

In the future, please understand just because there is a “no contingency” clause you still have the right, and most define lay should engage in a full home inspection with a company who is at arms length from the realtor and wholesaler.  You can always have your attorney incorporate a 5-10 day attorney review which may have saved you in this situation because asbestos is considered a hazardous material to humans.  A good attorney can usually weave an opportunity to exit the deal.

Finally, and most importantly, entering into a deal where the realtor and wholesaler are connected tightly is almost always a terrible idea.  The potential risk of you getting “scammed” is extremely high.  

Good luck,

@Jason Sinclair I have been a builder for 20+ years and the supply chain issues as a result of Covid have created a logistical nightmare which I have never seen, nor have any of my fellow builders.  Just a few items; lumber prices are up 325%, conduit is up 50%, any product which is produced with materials from one country and assembled in a different country is taking 3x the normal lead time, at best.  For the past month drywall mud is out of stock in many locations due to a latex shortage.  

So creativity is my only ally and I hope this little tidbit can help you; If at all possible find stock windows at a local store and modify the openings at your current location to fit.  If you are only an inch or two off you can hide that with a larger interior casing and same for the outside.  Easier, less expensive and faster.  

Good luck...someday we will look back on this and laugh :)

@Cory Lucas hello and happy Tuesday!  I would ask yourself this question...Am I buying this service/program to change something about myself I know I can do but lack the confidence?  If your answer is “yes” walk away and find some people, Meetups are a great place, who you can network with for free and learn the ropes.  

Unfortunately, in this industry, there are plenty of people selling “secrets” for a pretty penny, when, in reality, there are no secrets.  There is hard work, taking risks, learning from your mistakes and having some fun along the way. Most of these opportunists take advantage of people who just need a little confidence, because there is no secret sauce.

Good luck and have fun!  If you have specific questions, feel free to reach out. Thanks