All Forum Posts by: Kevin Ivey

First make sure you define what an investor friendly contractor is.  Not just cheap/ inexpensive, needs to be quick, quality work, willing to make suggestions for both cost savings & quality finish.  I know the contractors I work with appreciate a vacant project, we use keyboxs & change the codes as we progress to ensure they can work on their schedule not mine.  We coordinate subs & different phases to reduce stop & stalls my plumber & electrician now refer each other business and see my projects as a comfortable fun site.  We also ensure all materials they need are available so they can just come in & rock it out, keeping us on schedule.

Either way have him stop work he can only come after for work performed since no contract & bid was incorrect (I know in WA state there is limit to how much over bid you can be charged).

you're going to incur extra carrying costs & the vagaries of the market the longer you have the project stalled, but get the contractor cleared up before listing on the market & he could lien stalling your closing.

Best of luck

I have had great luck with Best Online cabinets, used them for 5 or 6 kitchens in flips so far, flat pack they ship everywhere typical full kitchen gets free shipping.  great quality and good customer service. 

 It all seems pretty reasonable and  thorough punch list only thing that send my antenna up is the comment about spot painting and "trying" to color match a bunch of mismatch color & sheets can make it look hodge podge very quickly.  Be sure to capture all paint info for next time so no questions about it.

How do you find your properties? wholesalers; cold calling lists; D4$; MLS?

The lowes in my area always have returned slightly dinged appliances in a back corner marked down.  Just remember fridges can be huge & much deeper than old smaller kitchens.

Purchase cost escrow etc,

hard money or loan origination fees/points

property taxes

closing escrow, title/ any local taxes

any realtor fees 

and then all the variable/controllable cost & taxes on your profits 

Just don't fool yourself in the flips profitability if you have to make the money/ difference on the realtor commission.  That should be a bonus, because you could have just been a realtor with no risk if that is a major part of your profit. 

In WA we have excise tax of 1.1% for the state and then typically another .5% to the county I swag about .6% for title fees etc... works out well for my back of envelope math 2.2% + realtor fees when I sell a property.  Which the seller usually pays both realtors if involved pluss you may have some prorated property taxes.  Not sure if your looking at costs to buy or when you sell.... or for the person selling to you.... 

Title Co is the cleanest and easiest way to get the answer.