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All Forum Posts by: Larry Freeman

Larry Freeman has started 1 posts and replied 5 times.

Post: New Arizona Member

Larry FreemanPosted
  • Phoenix, AZ
  • Posts 5
  • Votes 4
Sounds like you have a wealth of knowledge to offer. Welcome!

Post: Flipping General Contractor Estimate

Larry FreemanPosted
  • Phoenix, AZ
  • Posts 5
  • Votes 4

Hello Tiffany!

I am a general contractor in Phoenix, Az., as well as being both an agent and an active real estate investor and flipper.

What I'm seeing in the quote looks reasonable for quality work.  Remember, you are being quoted by a (I'm assuming) licensed contractor, not a handyman, or less.  That comes with it much more than "I can buy a door at Home Depot for $35."  You have to know what size door to buy, go to the store and purchase it, be able to transport it, know how to remove the old one, know how to square a new one so it doesn't rub or hit, and know how to paint it without ugly paint lines and roller marks, and know how to install the knob and/or cut in the hinges for proper operation.  Who among us hasn't, with frustration, come across a door that sticks or rubs and has to be pushed shut or pulled open with force?  They must be thoughtful to make sure the door knob and hinges match in color (brass, bronze, brushed, etc.,) usually in coordination with the bathroom fixture finishes and other hardware in the house....and pay for the supervision and overhead that has to be built into the price somewhere. 

There is work that needs to be done on what looks like every room in the house, as well as the exterior.  There are several different skill sets or subs needed including demo, paint, tile setting, cabinet and millwork installation, granite fabrication and installation, plumbing, electric, landscape etc.  Plus the time it takes to manage the project and oversee purchasing and delivery of materials and proper installation and finish work.

Have taxes been included in that price?

As a contractor, I often come across clients who are taken back by the cost of remodeling, but if you explore the actual material costs in association with the labor, foresight, craftsmanship, taxes and overhead costs of running a legitimate business, they make sense.

That said.....  A contractor is almost always willing to come down 10% or so of their initial quote.  Plus, as other members have mentioned, there is a LOT of cost variable in the specifics of materials such as granite, cabinets, fixtures, and flooring.  So be sure you know specifically what they are including.  For example, when quoting tile flooring I often include a material cost "allowance" of say $2.00/square foot, because I have no idea what tile you are interested in, but that is usually a middle of the road cost.  So, if after we get started, you choose a tile that sells for $4.00/square foot, then the price would go up accordingly.  This is the same for other costs like granite, cabinets, bath and kitchen fixtures, etc.

In my opinion, one of the best ways to see if you are getting a fair deal is to quote 3 separate contractors.  That usually gives you a good feel for the range.  To find those 3 it's best to ask around and find out who others have used and would recommend, or look into their ratings, or perhaps look online but ask for a few references.  If one is really high, rule it out.  If one is really low, be very very cautious before accepting (usually means they are missing something.)  If your still concerned, get a fourth quote.  It is typically a waste of time to get more quotes than that unless something is wrong or unequal.  Keep in mind, costs are costs are costs, and contractors are in business to make a fair profit like everyone else.  Of course, any work you can do yourself can cut a lot out of the price, but you really have to look at the personal time cost/tradeoff for projects that will take you days that might take a skilled craftsman hours.  As you complete more houses and gain experience you will learn more about what to look for in cost savings and can "fine tune" them by using repeat suppliers and contractors like Bob above is correctly suggesting in order to maximize your savings. 

Best of Luck! 

Larry

Post: I quit my job today

Larry FreemanPosted
  • Phoenix, AZ
  • Posts 5
  • Votes 4
Inspiring!

Hello. I'm a general contractor/agent/investor in Phoenix, AZ and surrounding areas. I'm wrapping up a flip at 24th street and Indian School to be listed later this week and am seeking my next property to start on. I have not been able to find any good current prospects from the wholesalers I'm currently in contact with or on the MLS. As a general contractor, I'm looking for a property that needs more work than "paint and carpet" and am able to repair most anything or add square footage if needed. Looking to spend roughly $50K to $150K in fix up over the cost of purchase and then have room for $25K-$60K+ profit after sale depending on scope and magnitude of project. Cash purchase. Please let me know if anyone has suggestions, or would like to add me to their wholesale property list.

Thank you!
Larry