All Forum Posts by: Todd Fox

Hey Zachary,

Send me a private message. Im in Ithaca and own several hundred beds of student rentals around Cornell. I'm also currently building the project at 201 College Ave. I started out with literally no money and essentially in the same position you are in. Id be happy to grab a coffee with you.

Richard Vetter Yes, these discounts are almost always less. I cost everything out and will compare prices with different vendors so if a wholesaler has a better price, I go with them. I usually always buy all my appliances online because there are various deals from different companies at different times.

Christopher Phillips I agree that contractors can get bigger discounts but that is never passed onto the customer. Contractors will often mark up the materials. It's also the safest way to avoid paying a contractor thousands up front (if not more) and never seeing them again. Aside from this helping avoid shady contractors taking advantage, there is also the "hit by a bus scenario". Let's say you pay a contractor $10,000 upfront. He's the most reputable contractor in your area and has an impeccable reputation. What happens if the next day he gets hit by A bus and killed. How will you get your $10k back? It's always better to eliminate as much risk as you can when it comes to this business. As for the contractor discounts. I am part of my local landlord association. Our group has negotiated with Home Depot for 10% on all purchase that are made. Each product goes to the "bid room" and the store gives as big a discount as they can. Trim gets discounted at 30%.

Richard Vetter NEVER EVER PAY IN ADVANCE!!! I always personally pay for all materials. I get a material lost from the contract and will have everything delivered or ready for them to pick up from Home Depot. I put materials on my credit card and get 1.5% cash back, which is a nice bonus. I pay the contractor based on the work they do. You should have them break down each trade and milestone, such as demo, rough electric, rough in plumbing, flirting, painting, etc. If a contractor tells you they don't have enough money in their personal account to float payroll for a week, that's A HUGE red flag and you should find someone else.

I would call your local building department and ask if there are contractors they can recommend. You can also call local architects and ask for recommendations. Good luck!

All good advice and accurate. It also doesn't hurt to contact a real estate attorney and ask them to confirm and questions you have.

Your best bet is to call your local real estate company and ask them for advice on the best real estate attorneys in town.

Andre Key I'm not sure what the average ROI is in your market. But for context, in my market, on a $200k investment, I would bring in $3,000 a month in gross rent. You should reach out to a local real estate company and ask to speak to a realtor who specializes in small investment properties. They will be happy to give you comps for free and as much info as you need.

@Ben Zarrour I would suggest you try wholesaling first because it requires virtually no startup capital. Its also a safe way to familiarize yourself with the market. 

Hey Ben! It's good to shoot for the stars! What part of NYC are you in? Do you have startup capital?