All Forum Posts by: Dave Vona

Thanks for the replies.  The attorney I'm talking to said to use insured contractors, even if some flippers do not.  It's a liability issue.  Although I talked to an insurance agent who had a different opinion.  He said if the contractor is only doing work such as painting or drywall that me having liability insurance would suffice if the contractor doesn't have insurance.  Even if they get hurt they would have to prove that it was my fault.  I still prefer to have a business that doesn't take any shortcuts.

Hi, I'm trying to get started flipping homes in Denver.  I've connected with several wholesalers and begun discussion with a potential partner and contractors.  I'm finding that there are some (many?) investors that are flipping homes in Denver (and probably other markets) that are using unlicensed and uninsured contractors, some may not even be pulling necessary permits.  I'm trying to understand how does someone that is trying to use only licensed and insured contractors compete with those that are not, since the uninsured contractors are going to be much cheaper. My goal is to build a business that deals with only professionals that are licensed, insured and have a high level of integrity, but I'm not sure if I can compete with others that are flipping with much lower costs.  Thanks.

Thanks for your replies.  Do either of you know if I have the contractor, or handyman, sign a indemnification agreement releasing me (and my company) of any responsibility if they get hurt on the job, if this can substitute for insurance?

Hi, I'm just starting out and looking into doing some flips.  It's possible that some of the work can be performed by a less skilled contractor, such as the painting and maybe the drywall.  I was wondering if I should require the contractor to have both workman's comp and liability insurance.  This seems like it could be cost prohibitive for the smaller jobs and a handyman is unlikely to have this coverage.

@James Carlson I appreciate the humor.

@Matt M. I've completed one long-distance flip in Kansas City but I've decided to turn my attention to Denver.  I'd like to do several flips per year here and then direct that capital into out-of-state rentals.  

Hi, I'm just getting started with flipping homes in Denver and wanted to find a real estate agent.  I'm looking for someone that has experience working with investors. 

Thanks,
Dave

That place looks great! I checked out the pics on Zillow as well.  I'm interested in doing some flips in Denver but looking at simpler projects to start.  What was the most challenging aspect of a rehab like this?  

It seems that the large property managers (1,000 units+) are moving in the direction of providing what @ ty

@Account Closed noted: excellent customer service, a community feel, and incentives, in addition to a clean, safe place to live.   The reason they do it is because they've figured out that this approach increases their profits through customer retention.  If the large operators are taking this approach then I would think the smaller operator with just a few units could learn from them and apply similar strategies.

Thanks for all the input, these are great ideas.  I think there's a lot to be said of the idea of using common sense and just treating your tenants well, keeping up on maintenance and being honest with them.  

@Joseph Lopez I see there could be a difference in the approach when looking at SFH - 4 unit compared to larger multifamily. Although, it seems that turnover will always result in additional costs, such as lost rent, cleaning/painting, marketing, etc. and therefor be something to avoid.

@Kai Van Leuven I've heard of others having BBQ's as well as part of a retention plan.  I've also heard of some landlords using a point system where the tenant earns points for each year they renew the lease.  They can use the points towards something like a house cleaning or similar.  

Hi, I wanted to hear what other people are doing to keep their tenants happy and renewing their leases. I don't have any rental properties yet but I'm always interested in hearing what can be done to increase the time a tenant stays at a property, in other words, reducing the churn. I understand that providing a clean, safe, and affordable property is going to go a long way, but what other creative approaches can be used. A friend of mine recently talked to the owner of company that manages 5,000 units in Texas. They have programs that offer ESL (English as a Second Language) classes, medical services, and after school programs for the kids. In addition, the managers at each property develop very close relationships with the tenants so they know and their family on a first name basis, and their histories. Providing this level of customer service has allowed this owner to reduce his churn to about 35%, when I believe the national average is over 50%. Smaller complexes and landlords of SFH's may not be able to provide these types of services but I'm sure there are other ways that these owners can approach customer service.