OfflineI am new to this website & looking for help. Two years ago I purchased my first tax forfeiture property, which needed a way more work than I realized. Being in a small town, my plumber aka handy man, thought he could take on getting bids for electrical, do plumbing himself, install appliances, tubs, sinks and do the sheet rock & muding, etc. Great deal for me and the State agreed to sell it on a 4 year contract. I signed the papers and made the first payment. Long story short, my family & I cleaned and hauled out the mountain of trash. Hired the plumber to get started. All new plumbing and wiring, new furnace, central air, sheet rock 3/4th done. Let it set for winter & took on a partner to pay the 2nd payment in the spring. New bathroom fixtures and kitchen cupboards put in, waiting on inspection before going any further. My partner and my plumber are not speaking to each other now & I am caught in a financial struggle. Third payment to State is past due and nothing was done on the house all summer. With winter coming, I am ready to walk away. My funds are exhausted and my partner will not put anymore in because of the conflict with plumber/contractor. I either loose $10,000 grand if State takes it back or try to sell "as is" if I can! It is a great little 3 Bedroom, bath & half, totally re-done inside. Outside needs paint or siding & windows are not great, but a good house for older couple or someone just beginning. I hate to loose it after all this. Any suggestions would be greatly appreciated. Signed, Very Stressed.
jbleess
If you sold it now, could you get your investment and that of your co-invester out of it? It may be worth just walking away for that or even less. Count it as a lesson learned.
Is there a way you can refinance or get the money in some other way that makes sense?
Is it in an LLC so as to protect your other assets? Any leans from the handyman?
It sounds like the project is taking a long time. If you do find a way to move forward, I would get it done quickly and get out.
You might also find an investing club in your area and talk to the old pros. You might even get some other ideas.
Wishing you the best!
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com
Thanks for the input. It is very hard for me to quite on things and thinking outside the box is normal for me. So, plan A. has come to a hault. Plan B is to find a new person to take over. It could be done in 20 - 30 days easy. Only problem is to sell it for enough to pay my partner, myself, the new person, & what the handyman thinks he is still owed, which would also involve me using money designated for my rentals that have property taxes and insurance due. I did not pay taxes yesterday because I am trying to make a decision on this house. If it does not sell right away, I still owe on my rentals! Plan C is to ask the State to give me one more year to buy some time because the econnomy is slow. I am sure they don't want it back even if it is almost done. Just bouncing ideas. Thanks
jbleess
Do you know someone who could lend you the money to complete the renovations that need to be completed? You pay them interest on their money, before you pay yourself, when the house sells. Work out what's going on between your partner and your plumber/contractor. Once that is clear up, pay him and let him go and find someone else to finish the job. Even if you got to be your own contractor and subcontract out what needs to be done (get everything in writting with guarantee that that is what it will cost)and check their creditably through references (past clients).
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
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I don't understand the part where the plumber and your partner aren't talking to each other. Maybe you should sit them down and tell them to act like business men and do what they should be doing regardless of their differences.
I am not sure what its over but business is business. bottom line is they both loose out as well as you.
On the other hand, maybe you can advertise it to get your money back. But you would have to know the FMV as is, to determine if it can be done.
good luck.
plan c might be the way to go also, then find a new investor to partner with to close the deal. have him buy out the other guys share. But i would sit down the hatfields and mcoys and work it out.
I'd fire that plumber. Sounds like he's trying to stretch out the job as long as he can.
BRE #01956371
I am in agreement with B.C. First i would exhaust option C, that way you will have that answer. This truly sounds like a simple lack or failure to communicate situation. It a good time to sharpen your diplomacy skills and try to extend an "olive branch" to your partner as well as your plumber, on each parties behalf. Hopefully this will open up a platform form for discussion. Word of advise, it might be wise to talk to each party individually so that you can explain to both that you are trying to create healing of this ill situation, so please leave the attitude and finger pointing in the past, and lets try to move foward. Being a general contractor for several years I have had numerous opportunities to sharpen my mediator skills between investors/partner as well as sub-contractors and their contractors. The statisfying part is that I have developed solid relationships over the years with reliable mechanical & carpentry contractors & investors simply by extending that "olive branch"! You can worry later and be stress later, but first exhaust all your options... and dont forget that "olive branch".
I have been playing mediator and just tired of being in the middle, but I have money in it and a project to complete! I have someone interested in finishing the job and just buying us out. Waiting to hear back from him, but found out his family has come down with that nasty flu. I hired some of my family to cut and remove shrub that was around the house and took 2 pictures, which I hope to figure out how to list both on Dean's site and on Craig's List for sale as a project that needs completed. I found out a few more things about the plumber/contractor I need to deal with before proceeding with him, if I do. All is not lost. I will keep praying for direction and keep reading the info available on this website. Once I get a buyers list/investors, I will be back in there doing deals only this time I will be a lot wiser. Thanks for the advice.
jbleess