Another Day…. Another Deal

For the last week we have been looking at a vacant 3 family home that has some fire damage to the rear exterior. I don’t know what it is with these fire damaged homes but I have a knack for finding them. I’ve brought contractors through and have been running some numbers. We finally met with the owner today and put it under contract for $20,000 with a closing next week.  Heres a picture:

102_4987

 

 

It’s been empty for over two years and all the copper pipes are gone (big surprise lol). It’s gonna need three new boilers, three kitchens, three bathrooms, alot of new windows, siding, roof repair and new porches. This is a very large three family with all three bedroom units. Each unit should rent for $900 when renovated. We may keep this as a rental when the rehab is complete.  This came as a referral from an insurance adjuster we recently had worked with on another deal. The kicker on this property is that we may be able to get some of the insurance money back when we finish the rehab. I’ll post more details and photos as things progress with the property.

 

The hardwood floor guys are over at the house on Hartford Terrace and they should be wrapping up over the next three days. That house is gonna look good when the floors are complete. After the floors are done we will clean, stage, and than put it on the market.

Searching for New Contractors

I spent this morning searching for new contractors. One of my mentors says that you should always be looking for and prescreening new contractors just like you do motivated sellers. We have two good crews right now working on a couple jobs… but I don’t want to overload them, and with the prospect of two big fire damage jobs coming up… I want to make sure we have some back ups in place.

What I did was search the skill’d trade section of Craigslist for Licensed and Insured contractors. I found seven who have advertised over the past two weeks and sent them an introductory email. Heres how the email went;               

”  My company is looking to expand our network of professional contractors and I saw your ad on Craigslist. We buy, renovate and resell 1-2 properties per month in the greater Springfield area, and need additional reliable and affordable contractors. Job size varies from light cosmetics to full gut rehabs. Our larger projects will require permitting so you must be licenced and insured.  We buy these properties for investment purposes and will not be the end user, therefore affordable pricing and timeliness of job completion are of utmost importance. Also, the ability to work with other tradesmen (plumbers,electricians, HVAC) and orchestrate a job site are key.
 
 
     If this sounds like something you may be interested in please call me or email back as I may have 1-2 projects for you to look at.
 
 
 
       Thanks,
                  Matt Kearney
                  Hampden Homebuyers ”

 

As I get responses I will further prescreen them and have them come out and bid a job or two. I also ask for references and a portfolio/photos of previous jobs.  I have been burnt by a few contractors in the past because I was too lenient in my prescreening process. (Just a side note, If your contractor needs you to provide the work truck and/or tools, they are probably not your right guy).

If any of you readers have good tips for finding contractors feel free to share them in the comments section!

We should have a closing coming up over the next couple days. It will be a nice rehab.

Heres the house:  

Bessemer

Fire Damage Cape