Arizona’s Remodeling Experts

Two years ago you couldn’t go wrong !  That is what most people thought. Now that the market has crashed a lot of want to be investors have lost their shirts or are losing them. Being in the Real Estate field has helped me scratch my way up little by little. When you start with nothing is when you call it scratching.

The smartest investors are the ones that listen and act on good advice. You must also be able to carry your investments. Unless the market is on fire and you are in the up swing, should you take a risk without the were-withal to carry the investment for awhile.

My highest earning client started with 150K land investment, a 25% down-payment. Taking my advice rolled in and out of properties for three years. He now is holding properties valued at over  3.5 million. We sold enough to purchase others and hold the balance.   He listened and acted on the right suggestions.

When your a scratcher, like myself you need good ideas. Then you need a good client that will give you time to share with them your knowledge. If they trust you and act, not only will they benefit greatly. You will compile a little more for your self.

Lots of investors are out buying houses that have come up for auction or have dramatically dropped in value. With tenants the holding cost are easier to handle. You just have to become a landlord. Houses will rebound, but I believe at a slower pace. Probably 2% per year. This is what it has been historically.

I have never been a huge fan of auctions due to the following reasons. The auctions have a reserve just like on eBay. So if you win the auction and your bid is lower than the reserve you have to match it. There is also a fee usually 5% for the auction house. Then on top of that. Most of the homes are in less that top condition. This means repair cost to bring the property up to rent-able condition. After you add up the total cost you could have hooked up with a licensed Real Estate Agent. Who knows how to find great properties in good condition for the same price if not less.

This  follows the same rules mentioned above. You don’t need to beat the bushes looking for that steal. Their are professionals that can lead you to the right properties. With  good common sense you can analyze what they have to share with you. Act and you will benefit!

Watching a report on 2020 the other night, I was completely surprised to listen to the statistics I heard. They were saying that only 2 out of 10 contractors were honest. This means only 20% will treat you fair and do what they say and or was contracted to do.

I am not sure I would believe that statement completely. That is a very high number. There are a few things to be aware of when considering a building-remodeling project.

#1 You should secure a building permit: If you ever sell your home or investment, the full disclosure laws require you to let the buyers know if you have had work done, and if permits were pulled. This may keep you out of a law suit in the future. A reputable contractor may be willing to do this work for you. A permit requires drawings in most cases. The contractor should be able to help and secure you a draftsman or architect for your project. This always takes time and will cost a fee. Patience is definitely required.

#2 After you have met : You should be comfortable with the contractor and he should be willing to work up an estimate based on your initial visit. Some jobs may be general enough that they could throw out a ball park figure. This will never be accurate ! Sometimes this will help save the contractor a lot of work. If he thinks possibly 45,000 and you were thinking 25,000. The project may be bigger than you imagined and you might need to go back to the drawing board or not move forward at all. If you are comfortable with the ballpark figure, then the contractor would not mind bidding out the project.

#3 The estimate : The cost break down should include all the work required. From plans and permits to demolition and construction. There should be a cost break down for each phase including materials required. Not all contractors provide a cost break down per phase but should break the estimate down in categories. This will make it easy for you to follow the progress.The dollar figure will be the same in the end. The complete cost should be on the estimate, with payment draws established as part of the contract. Your contractor should be able to explain each phase of the project and what you should expect. This also includes explaining the draw schedule.

#4 Acceptance of the Contract : If you are comfortable with the builder and he has done the above procedures. You may want to hire him. Call the local Registrar of Contractors and make sure the company is legitimate, and has no outstanding complaints. You may want to do this before you first meet. Most of the time on larger projects you may secure more than one bid. This is were you need to be careful on your decision. The lowest price is not always the best choice. Example : On two projects I bid on this year the customer accepted the lowest bid. One, I projected at 150,000. The winning bidder came in at 98,000. After visiting the owner during the project he had already spent 148,000 and was only in the framing stage. He had gone with the lowest bid and had accepted to pay for any cost overruns. Cost overruns should be projected in the bid. Most contractors know were these cost overruns will be, and can put a cost projection on them. If the cost don’t occur the buyer does not have to pay. The second project was a new build I projected at 335,000. The customer accepted a bid at 270,000. When the project was completed the final cost was 335,000. This was my nephew and it took him a year to get his cap five wire installed, that the contractor forgot, but had contracted for.

#5 Find a way to relieve stress : This sounds silly, but every remodeling project will require decisions to be made by the customers. Couples sometimes struggle over these requirements. You might try discussing a difference of opinion in front of your contractor during your first visit to test his abilities to negotiate and help you both make the right choice. Remember to have fun! The project will be completed and with the right contractor things will move along as smooth as possible.

It Ain’t All Work Jerry Brown

Owner of : OfficeOpen.com

My Daughter in-law recently set me up this Blog due to my interest in Blogging. Been floating here in cyberspace probably about two weeks. Went to a Blog seminar and was impressed at the net working possibilities and thought I would give it a try.

Been working on a web page and found it to be a little work to get up and running. Even though the Internet access to set up the sites are amazing!

My business is Real Estate and Contracting. Been wanting to tie them both together for years. I have tried many angels to do that and have lots of experience. I will share this in my first Blog attack : Investing takes money, credit, and financing. If your missing any one of the above you better be looking for a partner.

Arizona has been my home 30 years! I love this place. I have lots to share about the State and will be doing so frequently. Just moved a little over two years ago into what some people would call the county. YeeHa-Yahoo. Not me, I call it Paradise ! Will tell you a lot more later.

My web will be some how linked to this site eventually and you will be able to search and read about the reasons people move to the middle of the desert and love it. Planning on playing forward every thing that I can. Going to keep this first Blog short and want to thank Miss Talina for all her help!! Talina has an e-gift company and I highly recommend you check it out at: http://www.craftedcustomgifts.com/

It Ain’t All Work, Jerry

Owner of: www.officeopen.com