Comments on: MY 1ST REHAB: Cheron Williams http://www.investwithpassion.com/my-1st-rehab-cheron-williams/ Online Learning Community Mon, 06 Feb 2012 09:47:42 +0000 hourly 1 http://wordpress.org/?v=3.3 By: MY FIRST REHAB – TERRES KYLE – Creating Equity http://www.investwithpassion.com/my-1st-rehab-cheron-williams/comment-page-1/#comment-1730 MY FIRST REHAB – TERRES KYLE – Creating Equity Sat, 30 Oct 2010 01:08:40 +0000 http://investwithpassion.com/?p=88#comment-1730 [...] My first property was a two-story with a full, unfinished basement.  It was almost 40 years old but in great condition.  Luckily, it only needed cosmetic work.  However, there was a lot of cosmetic work to be done.  When I bought the property, it had more wallpaper and vinyl tile than you could imagine but I could envision its potential.  Luckily, I was buying this property through a program that allowed me to roll the rehab loan into the mortgage amount.  This made it easier, and more comfortable, to make all of the changes that I wanted without having to worry about the paperwork or hassle of getting two different loans.  The program was so awesome that it even helped me find a contractor. [...] [...] My first property was a two-story with a full, unfinished basement.  It was almost 40 years old but in great condition.  Luckily, it only needed cosmetic work.  However, there was a lot of cosmetic work to be done.  When I bought the property, it had more wallpaper and vinyl tile than you could imagine but I could envision its potential.  Luckily, I was buying this property through a program that allowed me to roll the rehab loan into the mortgage amount.  This made it easier, and more comfortable, to make all of the changes that I wanted without having to worry about the paperwork or hassle of getting two different loans.  The program was so awesome that it even helped me find a contractor. [...]

]]> By: Team IWP! http://www.investwithpassion.com/my-1st-rehab-cheron-williams/comment-page-1/#comment-23 Team IWP! Tue, 12 Aug 2008 15:16:42 +0000 http://investwithpassion.com/?p=88#comment-23 Yes, Pierre, this makes a lot of sense! I have spoken to Cheron and believe me, she agrees! The facts are you cannot hold people's payment ransom and family will choose to be civil, at times, rather than be confrontational. I am sure she wished they would have been upfront with her about the money and the project could have been a lot faster. Great response, we would love to hear from others on this situation and Pierre's line of thinking. Yes, Pierre, this makes a lot of sense!

I have spoken to Cheron and believe me, she agrees! The facts are you cannot hold people's payment ransom and family will choose to be civil, at times, rather than be confrontational. I am sure she wished they would have been upfront with her about the money and the project could have been a lot faster.

Great response, we would love to hear from others on this situation and Pierre's line of thinking.

]]> By: Pierre Clark http://www.investwithpassion.com/my-1st-rehab-cheron-williams/comment-page-1/#comment-16 Pierre Clark Tue, 12 Aug 2008 06:37:20 +0000 http://investwithpassion.com/?p=88#comment-16 I've read this account before and I didn't realize what bothered me about it till now - I'm almost certain that the decision to pay the contractors out of profits contributed to the delays in the completion of the job, because they didn't have any upfront cash to work with. My experience is that contractors operate on very tight margins and thin balance sheets; the way your job was set up meant they were funding the labor out of their own pockets till the building was sold and they could receive their profit percentage, since most employees will rarely work on promises alone. They probably had difficulty doing this and because they were family members didn't want to tell you what was really happening after having agreed to take on your project. A possibly better strategy might have been to pay them 25% of their fee up front, with graduated payments at stages 1, 2, 3, and 4, to give them the incentive of receiving cash at the completion of each stage. How do others feel about this? Does what I'm saying make sense? I've read this account before and I didn't realize what bothered me about it till now – I'm almost certain that the decision to pay the contractors out of profits contributed to the delays in the completion of the job, because they didn't have any upfront cash to work with. My experience is that contractors operate on very tight margins and thin balance sheets; the way your job was set up meant they were funding the labor out of their own pockets till the building was sold and they could receive their profit percentage, since most employees will rarely work on promises alone. They probably had difficulty doing this and because they were family members didn't want to tell you what was really happening after having agreed to take on your project. A possibly better strategy might have been to pay them 25% of their fee up front, with graduated payments at stages 1, 2, 3, and 4, to give them the incentive of receiving cash at the completion of each stage. How do others feel about this? Does what I'm saying make sense?

]]>