Seven Questions for Contractors
BY PETE YOUNGS ON OCTOBER 16, 2019
- How long have you been in business in this area? This is important because you want them to be established. In many cases, you may run into a company that is new and you will have trouble getting older references and such. If they have a good history in the area, you are less likely to have someone take your money and run. I like a 5 year history or more.
- How many workers will be on the job daily? I want to make sure that there are enough bodies to do the job in a timely manner as well as not have half a crew on most occasions. If the job is small, it’s ok to have a couple of workers only. On bigger jobs, I want manpower as we know time is money. Also make sure who you are dealing with will be on the job too. If they won’t, they probably hired the work out to subs and are making money off you.
- Are they licensed, bonded and insured? I do prefer that they have this in place however, I regularly hire small jobs that the individuals don’t have it. In my SWAT system (secret ways and techniques) as well as my famous Rehab 101 system I have a 225 document forms cd. In this, I require all workers to sign my Waiver Of Liability as well as my Lien Release form to protect myself against injury or property damage. Many times I will hire workers from new home construction sites to do “side work” for me. I know that if they work for a builder full time, they must have a license and insurance or they would not be hired by them.
- Have they had any complaints locally or with the B.B.B. ? I will overlook a minor complaint or two provided that they have been resolved. When you file a complaint with the Better Business Bureau, they contact the party and give them the opportunity to make it right or work it out with the consumer and if worked out there is no need for alarm. If they have multiples and they are long lasting and not resolved, I will not use them.
- Will they supply you with 4 to 5 references? This is important because everyone will have 3 good references to give but sometimes these are friends or relatives and will say good things anyway. I want number 4 to be someone that they went back after being paid to fix a problem or touch up. This insures integrity in the company or contractor that they stand behind their work. Number 5 is I ask them who their material suppliers are. I can call the paint store or material supply yard and ask them if they have had complaints there. Like if Sherwin Williams was a supplier, I would call and ask them about any complaints and also if they would recommend the contractor.
- Can I use my contract or do they use their own? Once again, my 225 forms cd has all the contracts and such that it protects me as well as being fair to both sides. You want to spell out the pay schedule, such as paying as work is completed or “draws”. This way you are not paying for work that is not done yet. Do you need to pay a material deposit? Use the term Balance Paid On Completion to make sure all work is done. Hold back 10% until a punch out list is completed to your satisfaction. Otherwise you may end up with an unfinished job.
- Will you supply me a written warranty for labor and also a copy of the manufacturers warranty from the materials? All materials such as paint, carpet, roofing and so on have written warranties on the labels or description. Make sure they will give you this info in writing as part of your contractual agreement so if anything goes wrong you are covered. Remember to put any and all details even if as an addendum to the contractors paperwork no matter how petty it may sound. Your contract is your protection as well as the workers proof that they should be paid for their work. It works both ways so pay attention to detail. You will see many more articles and advice if you keep returning to PeteYoungs.com and research My new SWAT system and award winning Rehab 101.
Pete Youngs
New Start-Up Offers Guaranteed Rent
BY BRAD BECKETT ON OCTOBER 16, 2019
A new startup called Doorstead doesn’t want you to miss out on a month’s rent just because you can’t find a tenant. Calling themselves a “full-service property management with guaranteed rental income,” the new company will not only manage your property but guarantee rent for rent for a certain number of days – even if it can’t fill the unit. In addition TechCrunch reports that they will handle all the algorithmic pricing, advertising, tenant screening, repairs & maintenance, leases and online payments in exchange for just 8% of the rent. Caveat emptor indeed….
“Owners just sit back and receive the money, making it much easier to profit off of distant real estate. The startup claims to earn users 3% to 9% more than other property management models.”
When a Home Is Suddenly Called Historic
BY BRAD BECKETT ON OCTOBER 14, 2019
What happens when you try to sell a property and a 3rd party throws a wrench into the process at the last minute? That’s what happened to a couple in Florida that had a contract to sell their house (and adjacent lots) for a new development but a neighbor put in an application to have their home designated as a historic property. According to the Wall Street Journal article (as reposted by Realtor.com), everything then “stopped in its tracks.” Indeed….
“Third-party historic designation is among the most contentious tools that historic preservationists have at their disposal. It pits homeowners against local preservation enthusiasts, and some who the owners suspect have motives unrelated to historic preservation.”
“Local historic districts date to the 1930s, when states and communities gave local towns the right to create historic areas and to establish rules on what could be done to structures inside the district, or to buildings deemed historic on their own. Those rules vary widely but generally govern changes to the exterior of a home viewable from a public way.”
WSJ.com
Yardi Says Rent Growth Flattened in September
BY BRAD BECKETT ON OCTOBER 14, 2019
According to the latest Yardi Matrix, U.S. multifamily rents flattened in September, coming in at $1,471 with year-over-year growth coming in at 3.2%. Yardi says multifamily rent growth performance is still “very respectable compared to long-term historical trends.”
August's Hottest Markets are Some You've Never Heard of
BY BRAD BECKETT ON SEPTEMBER 26, 2019
As we close out another summer, Realtor.com has come in with their list of the hottest markets from August – and some of them are in places you might not be able to find on a map. They say the hottest real estate markets in America are smaller cities that might lack name recognition but make up for it in affordability and cheaper alternatives to larger & pricier cities. Indeed…
“Smaller markets with smaller price tags continue to heat up feverishly,” says Javier Vivas, realtor.com’s director of economic research. “Buyers have more success in markets that have plentiful supplies of homes below $200,000 in the Northeast and the Midwest. In the West and the Southwest, we’re seeing alternatives to the pricey, larger cities make the list.”
Their list:
| Metro | Rank (August 2019) | Rank (August 2018) | |
|---|---|---|---|
| Fort Wayne, IN | 1 | 13 | |
| Pueblo, CO | 2 | 2 | |
| Midland, TX | 3 | 1 | |
| Rochester, NY | 4 | 5 | |
| Columbus, OH | 5 | 9 | |
| Buffalo, NY | 6 | 48 | |
| Lafayette, IN | 7 | 23 | |
| Kennewick, WA | 8 | 75 | |
| Spokane, WA | 9 | 21 | |
| Manchester, NH | 10 | 29 | |
| Janesville-Beloit, WI | 11 | 2 | |
| Vallejo-Fairfield, CA | 12 | 10 | |
| Akron, OH | 13 | 35 | |
| Dayton, OH | 14 | 16 | |
| Stockton-Lodi, CA | 15 | 15 | |
| Burlington, NC | 16 | 53 | |
| Canton-Massillon, OH | 17 | 38 | |
| Bakersville, CA | 18 | 54 | |
| Yuba City, CA | 19 | 21 | |
| Monroe, MI | 20 | 20 |
2020 Census Could Expand Opportunity Zones
BY BRAD BECKETT ON SEPTEMBER 25, 2019
With the 2020 Census happening sooner rather than later, Bloomberg Tax is reporting that investors across the country who’ve been asking officials to expand areas designated as Opportunity Zones might get their chance when Census Tracts are redrawn. They say that officials from the U.S. Treasury will have to decide how this action will affect these census tracts. A Treasury spokesperson said that revision gains would “further the goals of the opportunity zone legislation.” In addition, current projects may need to be grandfathered if their location gets moved outside of an Opportunity Zone tract. Indeed…
“The Census Bureau is revising census tract boundaries, potentially giving state governments the ability to cover more of their states in opportunity zones, nearly two years after they requested a limited number of census tracts for the incentive in the wake of the tax law’s passage. Such expansions would provide investors with additional options for projects that take advantage of the popular tax breaks, which allow those with profits from stocks and other investments to defer and reduce their capital gains tax liabilities.”
Top 10 Affordable Tech Metros
BY BRAD BECKETT ON SEPTEMBER 24, 2019
Here’s an affordability top-ten city list we haven’t seen before. The folks over at Realtor.com crunched the numbers to find the top cities in America that tech workers can actually afford. They looked at the 500 largest metropolitan areas and used at such metrics as the number of people employed in the tech sector, number of tech companies, tech job listings, home prices (nothing over $400k) and several other criteria. Indeed…
[these areas are]“…hidden gems that have it all: tons of good gigs, affordable homes, plus plenty of things outside those doors that will keep your inner geek’s brain cells firing—at work, home, and everywhere in between.”
California's Shambolic Housing Policies
BY BRAD BECKETT ON SEPTEMBER 24, 2019
If you’ve been following the Rent Control issue, you will undoubtedly be familiar with current epidemic of “do-something-ism” regarding the issue. Just recently, California’s governor signed landmark Rent Control legislation (even after voters rejected rent control at the polls last year) that limits (among other things) rent increases to 5% per year. The Manhattan Institute’s City Journal recently posted a short essay called “A Conspiracy of Entitled Incumbents, California’s new rent control law will please homeowners while setting back housing construction and affordability” that quite succinctly sums it all up. Indeed…
“…shambolic housing policies such as California’s latest version of rent control will only make everything harder. It will likely take a crisis—perhaps an exodus of businesses and residents—to force change.”
Click here to read the full article at the City Journal.
California enacts statewide rent control – HousingWire (10/8/19)
Existing Home Sales Inched up 1.3% in August
BY BRAD BECKETT ON SEPTEMBER 23, 2019
The National Association of Realtors is reporting that existing home sales inched up in August, marking two consecutive months of growth. The NAR largely attributed the rise to falling mortgage rates, among other factors, however tight inventory continues to squeeze home prices. Total housing inventory at the end of August was 1.86 million. Unsold inventory was at a 4.1-month supply at the current sales pace with homes remaining on the market for an average of 31 days.
“Sales are up, but inventory numbers remain low and are thereby pushing up home prices…Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.” Said Lawrence Yun, the NAR’s chief economist.
Click here to read the full release at the National Association of Realtors.
Choosing the Proper Water Heater
BY BRAD BECKETT ON JANUARY 4, 2019
Water heaters…those potential time-bombs in that flip you just bought or an aging old trustworthy friend in your basement. However, if you ever need to replace one, what kind do you replace it with? And, depending the age, they can consume an inordinate amount of energy! So which one is best for your property? The folks at The Home Depot put together this handy graphic to help comprehend and discover the best solution for your situation…..Happy Friday!!!
