All Forum Posts by: J.R. Gutierrez

@Ryan Keenan if the cost is the same, I would have the floors refinished. I personally think it's a better look than pergo.

Hey @Ben Valentin

From a rehab perspective, I would strongly suggest walking the unit and maybe even getting an inspection to see what the rehab costs are actually going to be. You never know what's hiding beyond the surface. What condition is the electrical in? It is an older home so are you going to have to rewire the entire house to bring it up to code? Maybe even install a new panel? That could cost as much as $20K. $115,000 for renovations sounds like a sufficient amount, but without details of the renovations it's hard to confirm. If the numbers are correct then you have a great deal on your hands.

Hey @Brent Neuenschwander thanks for sharing your story with us. Sounds like it's been a rollercoaster ride so far. I would love to see photos of the property and progress.

@Brianna Salas what is the scope of the job? Up until January of this year, I lived in Orange County and have a lot of contacts back home that may be able to help.

Feel free to send me a direct message if you'd like.

Sorry to hear about your troubles @Michael Henry

This is another unfortunate example of why one should never pay a contractor in full before the work is done. It's surprising to see so many examples like this. Contractors wanting full or 50% payments up front without completing a simple task. Any rehab project should have a set schedule of payments; whether is a percentage paid out every week or payment milestone with values attached to them. 

Thanks for sharing your experience so that the rest of us can learn from it.

Hey @Alex Velasco

As a fellow newbie, I find myself asking the same question. It's tough because you need financing to pull the trigger on a deal but without financing you don't know what you can afford and may have to pass up deals. I'm leaning towards getting the financing in place before pursuing any deals personally but I plan to do flips so my situation may be different than yours. I'm sure you'll get good feedback from the experienced BP community on what the best course of action is.

Good luck!

Hey Brodie Leggett No actual deals to report yet. I've met two awesome people from BP so far. Both have their businesses going. It's interesting to see how different investors are going about it. I met a really good real estate agent (not through BP) that has been sending me leads and setting up showings for potential properties. As far as the market goes, I've heard two different stories. Some people say it's a bubble that'll burst soon while others think the market will stay hot for a couple more years. What has your experience been so far?

Hey @Matthew Sutton

Having managed contracting firms before, the biggest piece of advice I can give you is: do your homework. What I mean is, know your state laws. For example: In California (where I used to work) a contractor can only ask for $1,000 or 10%, whichever is lower, as a deposit. So if any contractor is asking you for more than 10% to start the job, find out why. If he says it's for materials, offer to pay for the material directly. Even offer to meet him at the hardware store so he can pick out what he needs and you pay for it. 

Make sure the contractor is licensed and bonded. Don't just take his word for it. Have him provide you with proof and then look up the license online and see if it's current and if there are any claims against him from either previous customer or subcontractors he didn't pay.

Ask for references and call them. Of course they're going to only give you the ones that are going to say nice things about them. But if he gives you two references and has been in business for 10 years, I would be uncomfortable with that ratio.

Finally, get a detailed proposal for the work he is bidding. If his bid says "Home remodel - $20,000". I'd trash it right away. A good contractor will itemize the entire job with prices for everything. You can then do some quick research online to see what the average cost for certain items is and if he's within range, then you can feel more comfortable in using him. You can even ask him to list out material and labor separately.

I tend to ramble so I hope some of this made sense and was helpful. If you have any other questions, feel free to ask and I'll be happy to help if I can.

Good luck!

As a newbie myself, it's encouraging to read that some lenders will work with us and give us an opportunity to prove our worth. Thanks @Dawn Brown for sharing.

@Brian Garrett it'll depend on the contractor. Some GCs won't care to give you the sub's info because they have a close relationship with that sub and that sub probably won't work directly for you unless it's through that specific GC.

What you should do is get an itemized bid from the GC. Look at the prices he's bidding for certain items and then get tradesmen to give you bids for that same work. Compare the two and see what the difference in cost is. Keep in mind that if you use a GC; that GC will manage any subs he brings in. If you decide to use subs for some of the work, you'll have to manage them yourself. So again, what's more important: saving money or saving time? Do you want to coordinate 3-5 subs on one project and save money, or do you want to only communicate with the GC and pay a little more. Managing 3-5 subs and coordinating all the trades can turn into a full time job. 

The flip you're working on is going to dictate a lot of this too. If you're flipping a million dollar property, you definitely want to be more hands on and make sure the work is top notch. If you're flipping a house in a lower income neighborhood, you're more concerned with "cleaning up" the property and getting it sold or rented as quickly as possible with as minimal expenses as possible.

Keep in mind that every flip is going to be unique to its needs and the schedule will reflect that. A quick $10K flip may take 3-4 weeks, where a $50K flip may take up to 8 weeks.