When to Connect with GCs?
Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes
When to Connect with GCs?
Most Popular Reply
San Diego, CA · Member since 2017 · 26 posts · 24 votes
6y@Johnathan Simeroth
That's great that you're getting a jump start on the questions. And I agree about be willing to pay someone for their time to walk the property.
I've just been a property owner in Columbus for 9 months, but have learned a lot in that time. Analysis for future properties will definitely look different than for the first few, as will the members making up the team.
21 Replies
- Rental Property Investor · Blacklick, OH · Member since 2016 · 286 posts · 253 votes6y
@Johnathan Simeroth Great question. Couple questions:
- If you go with the latter, how will you know what the rehab costs are without a GC?
- - Would this be your first deal in columbus?
- Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
@Ryan Mainwaring Thanks for the follow up!
- Because I'm just getting started, I'm looking for rehabs on the lighter side. I thought it might be an option to leverage the experience of my agent (an experienced local investor) to ballpark these numbers before I make an offer. Then get an official bid from one of the recommended GCs during the inspection contingency period.
My big concern with that is just that it gives me very little time to vet the GCs before I become obliged to use him.
- This would be my first deal in Columbus (and anywhere, for that matter).
- San Diego, CA · Member since 2017 · 26 posts · 24 votes6y
@Johnathan Simeroth
Hi Johnathan and welcome to the Columbus OH market. I'm also a CA investors buying there and was told by an agent GAs wouldn't walk the property until it was under contract. Since that time, I've learned other agents are willing to share the contracts. My suggestion would be to consider working with other agents if you're having trouble making connections.
- Real Estate Agent · Houston, TX · Member since 2020 · 51 posts · 44 votes6y
Unless you can accurately estimate rehab costs/have a construction background, I would say to have a GC or two ahead of time. Offer them a fee to walk the property with you and provide numbers if necessary. A few hundred could save you thousands in the long run!
- Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
@Daniel Spaizman thanks for the tip! I put together a list of basic questions to go through with potential GCs and plan to interview a handful this coming week. Hopefully I can find someone that’s a good fit!
How long have you been investing in Columbus? How is your journey going so far?
- Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
@Ridge Tullos great point! I’m happy to pay someone to walk the property. Now I just need to find the person to do it!
- Investor · New York City, NY · Member since 2016 · 155 posts · 105 votes6y
@Johnathan Simeroth Networking is so important. Are you going to Meet-Ups to meet other investors? They'll be able to recommend GCs in your area. Team up with experienced rehabbers and surround yourself with people who are already doing what you want to do in your market.
- Real Estate Agent · Houston, TX · Member since 2020 · 51 posts · 44 votes6y
@Johnathan Simeroth I believe Biggerzpockets uses Homeadvisor but there are also sites like Angie's List who can help you find qualified contractors. Then there are also options like asking friends, family, other investors, attending meetups etc.
Good luck!
- 6yRyan FreyPro MemberDeveloper · Missoula, MT · Member since 2016 · 46 posts · 29 votes
@johnathan
@Johnathan Simeroth Back when I was starting out, I did a lot of remodels. I would get a lot of calls from real estate agents, prospective home buyers, or investors asking me too come and provide a quote on a property they were looking to buy. I would set up a meeting to walk the property (1.5 hours), then come back and work up a quote (3 hrs min) then drive out and meet the prospective client to present bid (1.5 hr). i quickly realized this was taking up a lot of my time and 9 times out of 10 they used my quote to as a negotiating tactic to reduce the sales price, then performed the work themselves or put it out to bid again. I thought, something is not right with this model. Everyone in the transaction gets paid, the real estate agents, the home inspector, the title company, the banks, etc. Except for one person, the GC. I quickly started charging $300.00 for this service and only providing estimates. Granted few people took me up on that offer, but it never hurt my business.
So, in response to your question, don't be afraid to pay a GC upfront for his or her time giving you a quote on your project, even if you don't end up buying it. Call that person again for a quote on the next property, I bet you will get a great response and attention to detail, because you have proven to the GC that you value their time and they will reciprocate.
- San Diego, CA · Member since 2017 · 26 posts · 24 votes6y
@Johnathan Simeroth
That's great that you're getting a jump start on the questions. And I agree about be willing to pay someone for their time to walk the property.
I've just been a property owner in Columbus for 9 months, but have learned a lot in that time. Analysis for future properties will definitely look different than for the first few, as will the members making up the team.
- 6yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Originally posted by @Johnathan Simeroth:
Hello BP community! Newbie here, getting started in the Columbus, Ohio market with BRRRR deals. As I'm just getting started, my primary focus has been building out my team of core 4, +wholesalers. It has taken a lot of time reaching out to multiple people for each role, interviewing them, and looking for one to two top notch people for each spot.
In the process, I've noticed that some agents have contractors they can recommend, but don't hand out contact information for GCs until you've got a property under contract.
That feels risky to me, but I'm curious your thoughts on it. Is it worth missing some deals while I work on finding and interviewing GCs and pick one who is a good fit, or does it make sense to put a deal under contract if one comes up before I've got a good GC?
You don't have to wait until you are in contract for a few GC recommendations. But it is a good time because you have a good reason to do that. Which areas are you looking in? one easy way is to search "aca permit lookup" and you can look by street on permits that are pulled by GCs in your street and that's an easy way to start looking. Plus the GCs like to have multiple projects in the same area.
Section 8 Launch52 Reviews - Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
Originally posted by @Mark Allen Kenny:
@Johnathan Simeroth Networking is so important. Are you going to Meet-Ups to meet other investors? They'll be able to recommend GCs in your area. Team up with experienced rehabbers and surround yourself with people who are already doing what you want to do in your market.
I am! And if there are any other Columbus investors here in the San Francisco Bay area (we're in Sunnyvale), please feel free to reach out. I'd love to connect. My wife and I are also taking a trip to Columbus to network and familiarize ourselves with the neighborhoods, first weekend of May. Assuming the situation with the pandemic hasn't escalated too much, we'd love to meet as many people as we can while we're there.
- Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
Originally posted by @Ridge Tullos:
@Johnathan Simeroth I believe Biggerzpockets uses Homeadvisor but there are also sites like Angie's List who can help you find qualified contractors. Then there are also options like asking friends, family, other investors, attending meetups etc.
Thanks Ridge! I assumed that those resources might end up suggesting lots of contractors who are less investor friendly, and more focused on the average homeowner. But I should give them more thought! Has anyone had success finding contractors or other vendors through Angie's list or similar sites? Any tips?
- Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
Originally posted by @Ryan Frey:
@johnathan
@Johnathan Simeroth Back when I was starting out, I did a lot of remodels. I would get a lot of calls from real estate agents, prospective home buyers, or investors asking me too come and provide a quote on a property they were looking to buy. I would set up a meeting to walk the property (1.5 hours), then come back and work up a quote (3 hrs min) then drive out and meet the prospective client to present bid (1.5 hr). i quickly realized this was taking up a lot of my time and 9 times out of 10 they used my quote to as a negotiating tactic to reduce the sales price, then performed the work themselves or put it out to bid again. I thought, something is not right with this model. Everyone in the transaction gets paid, the real estate agents, the home inspector, the title company, the banks, etc. Except for one person, the GC. I quickly started charging $300.00 for this service and only providing estimates. Granted few people took me up on that offer, but it never hurt my business.
So, in response to your question, don't be afraid to pay a GC upfront for his or her time giving you a quote on your project, even if you don't end up buying it. Call that person again for a quote on the next property, I bet you will get a great response and attention to detail, because you have proven to the GC that you value their time and they will reciprocate.
Ryan, can't tell you how much I appreciate having the unique perspective of someone who actually has worked as a GC! I totally agree with your point, and I'm truly surprised that few people took you up on that. $300 to build a relationship with a talented GC sounds like a total bargain!
By the way, you mentioned you did a lot of remodels when you started out. Out of curiosity, what have you pivoted to now?
- Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
Originally posted by @Daniel Spaizman:
@Johnathan Simeroth
That's great that you're getting a jump start on the questions. And I agree about be willing to pay someone for their time to walk the property.
I've just been a property owner in Columbus for 9 months, but have learned a lot in that time. Analysis for future properties will definitely look different than for the first few, as will the members making up the team.
Thanks for the perspective, Daniel. Great to hear from someone who is doing what I want to be doing, where I want to be doing it. Please reach out if you're ever in the SF Bay area. I'd love to connect!
- Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
Originally posted by @Robert Ellis:
Originally posted by @Johnathan Simeroth:
Hello BP community! Newbie here, getting started in the Columbus, Ohio market with BRRRR deals. As I'm just getting started, my primary focus has been building out my team of core 4, +wholesalers. It has taken a lot of time reaching out to multiple people for each role, interviewing them, and looking for one to two top notch people for each spot.
In the process, I've noticed that some agents have contractors they can recommend, but don't hand out contact information for GCs until you've got a property under contract.
That feels risky to me, but I'm curious your thoughts on it. Is it worth missing some deals while I work on finding and interviewing GCs and pick one who is a good fit, or does it make sense to put a deal under contract if one comes up before I've got a good GC?
You don't have to wait until you are in contract for a few GC recommendations. But it is a good time because you have a good reason to do that. Which areas are you looking in? one easy way is to search "aca permit lookup" and you can look by street on permits that are pulled by GCs in your street and that's an easy way to start looking. Plus the GCs like to have multiple projects in the same area.
Rob, that's such a unique tip that I haven't heard anywhere else yet. I will for sure give it a try. Do you think that there's the same risk I mentioned above about Angie's list though? That I'd be interviewing a lot of contractors that are more geared (price and communication style and expectation -wise) for personal homeowners? Maybe that's more of a problem in California and I shouldn't worry too much about price differences in Ohio?
- 6yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Originally posted by @Johnathan Simeroth:
Originally posted by @Mark Allen Kenny:
@Johnathan Simeroth Networking is so important. Are you going to Meet-Ups to meet other investors? They'll be able to recommend GCs in your area. Team up with experienced rehabbers and surround yourself with people who are already doing what you want to do in your market.
I am! And if there are any other Columbus investors here in the San Francisco Bay area (we're in Sunnyvale), please feel free to reach out. I'd love to connect. My wife and I are also taking a trip to Columbus to network and familiarize ourselves with the neighborhoods, first weekend of May. Assuming the situation with the pandemic hasn't escalated too much, we'd love to meet as many people as we can while we're there.
would love to connect when you come to columbus
Section 8 Launch52 Reviews - Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes6y
@jonathan simeroth Here's what will help you because there are lots of tire kickers in the Bay Area that are interested in Ohio. First, get pre-approved with a lender. Too many times agents, contractors, PMs etc. here from "potential lookie lou's" that don't do anything. The biggest way they gauge interest ends up being pre-approval from a lender because it shows you have already taken "some" steps. They also get hit with the so called, "Prices are low in Cleveland, Columbus, Akron, etc. so I will just pay cash." Then the prospective buyer, flipper, etc is told, great show me proof of funds :-)
Get pre-approved sir, with a lender, or even an HML and you will be taken much more seriously. If you need one, I can put you in touch with people who will do a mortgage loan in Ohio for as little as $50K.
- 6yZeke ListonBusiness MemberReal Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
Great advice @Brian Garlington!
Forge Real Estate Advisors535 Reviews - Investor · SF Bay area · Member since 2019 · 19 posts · 20 votes6y
Originally posted by @Brian Garlington:
@jonathan simeroth Here's what will help you because there are lots of tire kickers in the Bay Area that are interested in Ohio. First, get pre-approved with a lender. Too many times agents, contractors, PMs etc. here from "potential lookie lou's" that don't do anything. The biggest way they gauge interest ends up being pre-approval from a lender because it shows you have already taken "some" steps. They also get hit with the so called, "Prices are low in Cleveland, Columbus, Akron, etc. so I will just pay cash." Then the prospective buyer, flipper, etc is told, great show me proof of funds :-)
Get pre-approved sir, with a lender, or even an HML and you will be taken much more seriously. If you need one, I can put you in touch with people who will do a mortgage loan in Ohio for as little as $50K.
Thanks Brian! We started with agents to get referrals to lenders and GCs. Good point that once we find lenders and get pre-approved, we might be able to take our pre-approval letters back to the agents and have them be more open about GC referrals. And GCs that we talk to might take us more seriously too!
We're interviewing a couple lenders per day this week. Just found one yesterday that will do refi with no seasoning period! I'm stoked! Talking to a few more today and tomorrow before we decide which 1-2 to partner with. If you have a contact you'd recommend, I'd love any referrals you have!
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes6y
Originally posted by @Johnathan Simeroth:
Hello BP community! Newbie here, getting started in the Columbus, Ohio market with BRRRR deals. As I'm just getting started, my primary focus has been building out my team of core 4, +wholesalers. It has taken a lot of time reaching out to multiple people for each role, interviewing them, and looking for one to two top notch people for each spot.
In the process, I've noticed that some agents have contractors they can recommend, but don't hand out contact information for GCs until you've got a property under contract.
That feels risky to me, but I'm curious your thoughts on it. Is it worth missing some deals while I work on finding and interviewing GCs and pick one who is a good fit, or does it make sense to put a deal under contract if one comes up before I've got a good GC?
What you may not understand is that at this point in the game you're going to have to pay GC's to bid properties for you. I know you've probably heard folks say you should network with GC's or get 3 GC's to bid out your houses before you make offers etc...........Lol none of that stuff is practical in the real world. A GC is going to run you about the same amount of money for a bid as a home inspector would for a home inspection. More or less it's a similar product.
So with all of that said you'll need to start contacting GC's who're advertising and buy their products. Go from there. It's going to be a lot of trial and error.
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