A Mechanics Lien? Lock down your bids in a contract!
I want to talk about Mechanics Liens. This quick tip will ultimately save you thousands, and thousands, and thousands of dollars. This is something I have started putting to work in my own business and I know it has helped me. Okay, so, during a rehab, your GC hires a Subcontractor who generally will give you a bid to do the work. They are supposed to keep that bill within reason of that bid. Now, we had a situation in which the bill that I got was significantly different from the bid I had initially received. The tricky part apart about handling this situation had to do with how the Subcontractor felt about our questioning the bill. We thought the bill was wrong and inaccurate. Now, what that Subcontractor can do is get a Mechanics Lien against your company if you refuse to pay the high bill. So, they now have a lien on the property for the amount they feel they are still owed. Attorneys, then, have to get involved. Court dates are filed. Mediation. Arguments. And the Contractor’s Board has to become involved. It’s a big mess and it costs a ton of money. So, what can we do? We now have a document that we have every single Subcontractor sign. It’s a simple document that signs they are waving their right to Mechanics Lien and they have to keep their bill like that of the Bid. Also, the only way they can bill us for more, is if they have a signed changed order approved by the GC or the owner. I suggest every REI renovator have a similar document drafted up by their attorney. Like I said, it will save tons of money and keep your projects from being...
Real Dealz 64: Million Dollar New Construction
In Episode 64, Tucker takes you back in the trenches with a video update of our most recent completed project in one of the hottest neighborhoods in Lake Oswego, OR. This luxurious home had sold before it was even completed. This is due to a very hot market, low inventory and of course, the home turned out amazing! Tucker gives you the details of the deal as well as a tour of the home so that you can see how nice it turned out. We hope you enjoy this episode and please leave us feedback and reviews! Iron Bridge Lending – NMLS 854231 – C-FL 603I808 – OML -5106 (503) 225-0300 Iron Bridge Lending Programs Links: Iron Bridge Lending Negotiating With Sellers The Deal Finders Academy Real Dealz Podcast on iTunes Real Dealz Podcast iTunes App The Dirty Truth: Real Stories From The Real Estate Trenches Real Estate Investing Secrets By Tucker Merrihew: Volume 1 Real Estate Investing Secrets By Tucker Merrihew: Volume 2 Real Estate Investing Secrets By Tucker Merrihew: Volume 3 Contact Email: Tucker@TheRealDealzPodcast.com Info@TheRealDealzPodcast.com Thank you for listening to our Podcast and please give us a review on iTunes and feel free to leave a comment below. Additionally, if you have any questions or would like Tucker to cover a specific Topic, please let us know and we can cover it in a future episode! Thanks...
Need Capital? Find Private Money!
How do I get the capital I need to close the deal? This is a question I’ve been asked many times. There is always Hard Money, but this comes with a high interest rate and increased pressure. The other option is Private Money. So, what is Private Money? How do I find it? How do I structure a deal with Private Money? These are all great questions that I want address in this quick tip. Private Money is not institutional money. Generally, Private Money is from a “private” source. Usually, this is an individual, or a group of individuals, who have money they would like to invest for greater returns. These terms are a bit easier to work with, but they’re harder to come by. Maybe 6% to 12%, with 0 to 2 points up front. Private Money can come from many sources, including family and friends. It is best if you can find Individual Investors looking to diversify. But, how do you structure the deal with Private Money? Here is what I do: Be sure the Private Money is ready beforehand and be sure to never touch the money. How? Easy. The Private Money lender always sends the funding directly to the Title and Escrow Company, who then sends a Note and Deed of Trust back to the Private Money Lender. This secures their money by placing them as 1st position Lien, in case I ever balked. I never have and I never will, but our secure method lowers risk, and therefore lowers the interest rate they need to make in return. When the house is finished, then sold, and the deal is finally closed, we make sure to send the loan plus interest and points directly to the Private Money Lenders from the Title and Escrow Company. We get the difference and this is our profit on the job. Like I said, we never touch it, and everyone makes a few bucks along the...
Real Dealz 63: DFA Interview w/ Brian Daly of REIG in San Diego
http://traffic.libsyn.com/realdealzpodcast/Ep_63_Final_MP3.mp3Podcast: Play in new window | DownloadIn Episode 63, Tucker talks about the latest news with TTM Development company and the latest offerings that help real estate investors improve their businesses. He then speaks briefly about our sponsor, Iron Bridge Lending who’s the best hard-money lender we’ve ever worked with. Tucker then gives his thoughts on what he’s seeing in his local market and what he thinks others can expect this summer. In this weeks DFA Interview Series, Tucker interviews Brian Daly of REIG in San Diego and dives into Brian’s business, how his company is structured and what kind of projects they’re currently focusing on. This week in the No BS Zone, Tucker talks about a recent run-in with an unethical realtor. He then ends the episode with a great success quote. We hope you enjoy this weeks podcast, please leave us feedback and reviews! Episode 63 Segment Notes: Intro/Summary Special Sponsor Segment: Iron Bridge Lending Market Recap: Tucker shares his thoughts on the current local market Main Topic Interview: DFA Member Brian Daly of REIG in San Diego, CA No BS Zone: A realtor violates her ethical obligation Transition Music: Various Instrumentals Ending Music: Fetty Wap – Trap Queen Iron Bridge Lending – NMLS 854231 – C-FL 603I808 – OML -5106 (503) 225-0300 Iron Bridge Lending Programs Links: Iron Bridge Lending Negotiating With Sellers The Deal Finders Academy Real Dealz Podcast on iTunes Real Dealz Podcast iTunes App The Dirty Truth: Real Stories From The Real Estate Trenches Real Estate Investing Secrets By Tucker Merrihew: Volume 1 Real Estate Investing Secrets By Tucker Merrihew: Volume 2 Real Estate Investing Secrets By Tucker Merrihew: Volume 3 Contact Email: Tucker@TheRealDealzPodcast.com Info@TheRealDealzPodcast.com Thank you for listening to our Podcast and please give us a review on iTunes and feel free to leave a comment below. Additionally, if you have any questions or would like Tucker to cover a specific Topic, please let us know and we can cover it in a future episode! Thanks...
Technology, Business & House Flipping – See How I Organize My Business!
In the middle of last year, a Real Dealz Podcast listener wrote to ask: What software do you use in your business? I hadn’t thought to address this question before, but I thought it was a great question. So, I answered this question in the podcast. Let’s take another look now, and ask what software do I use in my business? Some of the software from this list might seem obvious, and I will be brief, but I would like to also be exhaustive. So, first and foremost, Excel. We use Excel all day, every day. We use it as a database tool to track our mailing lists, organize our mailing lists and control our huge source of mailings. Essentially, it is a Direct Mail Marketing go-to for anyone that is doing REI the correct way. There is also Zoho, which is a CRM software. This is used to track our contacts, as well as keep a big picture perspective on our Direct Mail Marketing campaigns. Microsoft Outlook is used to manage appointments. We also use Microsoft Word. The biggest piece of software, though, is QuickBooks. QuickBooks changes everything. Why? It is how I control the money, and cash flow is the life blood of my business. I want to emphasize that it is very important to know how much cash you have on hand and QuickBooks, if used properly, can track expenses and income perfectly. By doing my own books, this puts me in a position to know exactly where I’m at and to be in complete control. If you’re not tracking your income, you are taking too many risks. You are flying blind and your business is a mess. So, quick lesson: get with it! Organize your...
Associations
