All Forum Posts by: Nick Grewe

I guess it also depends on what kind of market you want to go after? Helping investors flip? Small landlords upgrading rentals? Large investor properties? 

The problem I run into is finding people to do the small work. I can put a request out to bid siding and have people from all over the place bidding for the work. But trying to get a section of siding replaced on a third level by someone licensed and insured with the proper equipment is a different game. The general I call for that doesn't even get out of his truck, just calls another sub and collects the payment when it's done.

I dont think there is a shortage of people that can do the job, but finding ones that have a couple million dollars coverage, have legal employees that pass criminal background checks and have the patience to sit down and sign contracts and know how to get onto a corporate accounting structure for payments is the real shortage. All just to appease the lawyers, tax codes, insurance agents and sue happy population. Insert GC necessity here. 

Damn I wonder why rent is expensive. 

 To sum up my ramblings, is there a profitable way to have someone take on all of your small jobs while you are off doing the bigger ones?

Congratulations on obtaining your dwelling contractor license. 

For me, a 5-star contractor provides excellent overall VALUE----does what they say they are going to do with fair pricing. My favorite contractors are dependable, honest, fairly priced and consistent. 

My husband and I run Wisconsin Contractor & Handyman Club and the biggest challenges I see when members voice complaints are the ability to say no, showing up and also ensuring all expectations are clear. 

I wish you the best in your venture. 

@Nick Grewe And figure out early on exactly what your SOW will be. Are you going to run by and do patchwork, like @Account Closed mentioned? Or are you going to do larger remodels?

There's not really any money for guys like us in the small job game, you can't even cover your overhead. I'd leave that stuff for the handymen....

The most successful (not best) General Contractors were not good workmen and didn't ever put bags on,,,..they actually didn't have bags or know which end of a hammer to grab...

They just drove around in big fancy trucks and did all the paperwork and meetings correctly. And have other people do the work.

Unfortunately, I was just compelled to keep putting on the bags. Definitely gave me the cool factor, but they got the $$. Figure out what you want before you start.....

Send the investor receipts. It’s like pulling teeth to get people to send me receipts. And I don’t have a problem with unforeseen issues. Those always come up and I’m happy to pay for it. Just be straight up and honest about it right away when random extras pop up. Honesty is my #1 trait I look for in a contractor. Most of my guys rip me off or lie about things. That gets annoying.

@Nick Grewe

Honestly. You should probably avoid investors/flippers until you get better at what you do. Get a few home owner projects under your belt. Test out your sub contractors before you get in over your head with investors. (Most times) they have a system in place and if it goes sideways or south which I can guarantee you it will sometimes. You will ruin that relationship/referral. Real estate investors don’t pay good at all, but their rich friends do. Keep that in mind

It’s excellent to enter the GC business with this attitude, so stay in that mindset.

I’m a lifer in construction that evolved to a GC then to design-build (design-remodel really).

Its been said above; don’t talk, write. Get an excellent contract based exactly on your business model, makes sure its correct for your state, get one from a construction attorney in your area, worth every penny. Do detailed scopes of work and do detailed release schedules that match obvious progress points that a homeowner easily recognizes. Either blatant to the naked eye or evidenced by a signed inspection record by municipal authority or 3rd party inspector. Make it make sense to the owner why it’s time for the release due. Make it follow your course of construction plan or flexible enough to jump around. Documents reduce debates.  I mean, its called General “Contracting” for a reason, not General “Construction”.

Something not mentioned. Insurance. Never……Never…..Ever……Operate without CORRECT type of insurance for your EXACT business model. If you put it in a contract, subbed or not, make sure your insurance knows you sell that scope of work and cover it. Follow procedures that keep you qualified in your insurers eyes, and ask them blunt questions about how you could screw up your coverage. Construction is one of the worst businesses to gamble in (ie profit and liability), from injury to defects to contractural disputes. As a small GC you could be ruined instantly if uninsured and  sued.  DO NOT be one of those guys that says that’ll never be me, I’ll never have a dispute I cant resolve, I’d never need to be sued by anybody…. Thats not how it works.  Figure out your insurance rates, factor them into your bids. 

Not in order of priority. 

1. Learn project management. There's several different programs that will help with timelines, etc. 

2. Don't make promises you can't keep. If you don't know something, admit it and then find the answer. 

3. Use numbers based on reality at the time. 

4. Know what you know. 

5. Take pride in your work, and you'll get referrals, though don't overthink every single thing. 

6. Know the laws regarding contracting, liens, etc. and make sure you're covered. 8. 

7. Plan for the worst and hope for the best

8. Don't be afraid to ask other contractors for advice. 

9. Learn the permitting process for the type of jobs you're going to do. 

10. Learn codes. 

You need to have a pretty good - very good knowledge of the game before you start running big jobs. Too many moving parts. Do you have to have provable experience in your state to even apply?