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Tuesday, August 02, 2005

One Day Delay

I was planning on heading out to the property today to take some pictures and see how things looked, but I just got a call from Keith and will postpone that trip one day. All the cabinets are hung and today they are installing the doors. They are missing one drawer box, so Keith has to pick that up and get it installed. The panels for the sides of the cabinet are still not done, but they should be done and installed tomorrow. (Keith says they are just veneer that is cut to fit and glued on, so installation time is minimal.) They also realized they needed toekicks, so they've got to get those. In short, all that's left is the little stuff that was overlooked because the job was half done when Keith got it.

The yard guy called this morning and said he could get the yard done today. He was a bit put off when I told him no one would be at the house. He said I needed to be there to tell him exactly what needed to be done. I explained the yard is all rock and I just need all the weeds pulled. There is really nothing ambiguous about it. He said he'd call me again when he gets there. This was about 2.5 hours ago and I haven't heard back, so I'm wondering if he just blew me off.

I got the invoice for the tree trimming, so that should be done. I'll check tomorrow when I go out there before I pay it.

I ran comps again and, as Scott alluded to in the comments to my previous post, the increased holding time I have encountered has worked to my benefit. Using the same source, comps for the property went from an average of $99.94 / square foot in March to $102.65 / square foot in May to $112.20 today. That's an increase of $12.26 per square foot, which translates to an extra $16,600 for this house. Yeah, that pretty much covers my holdings costs of $160 a month!

10 comments:

Bginvestor said...

Shaun,

Why is your holding costs only $160 a month?

Don't you have a mortgage on that thing?

Shaun said...

Nope, no mortgage.

Anonymous said...

How in the heck did you do it without a mortgage? All cash?

Steve said...

I believe he paid all-cash via one of his LLC holding companies, if my faint memory is correct. :-/

Way to hang tough with this one, Shaun. Won't be too much longer now.

Shaun said...

That is correct. I formed an LLC and found some investors to fund it. The property was paid for in cash.

tmtb said...

Excellent update. I take it you'll be using Keith on upcoming projects.

Trisha#1 said...

Cool! You're doing well on this one, then! So, if I may ask, how much of your profits will go to your investors? I realize you might not want to answer.

Shaun said...

I charge 15% of the profits for my services, so 85% of the profit goes to the investors. This is actually a pretty good deal - the other investment LLCs I am in charge 25%. If I start another LLC, I'll probably charge 20%. Seeing how I had little experience when I started this one, I kept my fee down.

Bginvestor said...

Shaun,

Interesting.. Is this investor out of state? Are you in total control of the transaction? Why does he need help to invest his money?

I have no problems spending money ;-)

Shaun said...

The investors (plural) are out of state. The agreement states I have total control of the business. They wanted to get into the hot real estate market here in Phoenix and they knew what I did, so they inquired if I was interested in investing some of their money.

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