All Forum Posts by: Russell Quealy

@Zambricki Li

Yeah I've heard about it being fairly common which is very unfortunate. But for a 4 week job they quoted me 18k for labor. I thought it was high but I read some decent reviews and with covid didn't think much of it. I have paid them 15500 so far and they have worked on the property for a total of 4 weeks and it's about 50% complete. When another contractor walked the property they pointed out multiple things that were not per code nor were things installed correctly. It was going to be a flip but with the amount of bad work I'll keep it as a rental. I later found out that the he was not licensed. After being fired he said the new total is now 25k and added items that were not started as add on work. I don't believe he is allowed to do this as no work was started for what he is billing me for. I don't want to get sued due to the head ache but I know if he tried he wouldn't have much to stand on. I've taken pictures and I have the new licensed contractor coming to document everything in the event they do try to sue me and I'm able to show a detailed list of things that were not correctly done. I just don't want the head ache

Hello everyone!

So I feel like I'm in a bit of a pickle right now. I had these contractors working on a flip for me. One day the lead just packed up all of his stuff and Left without letting me or my wife know. I showed up to the house and tried to contact him but wasn't able to. Finally I got ahold of his wife and she told me there were no materials at the house to continue working, but there was plenty to do. In dealing with that I walked the property and saw a lot of items that were not finished, up to code, and things looked horrible. My wife and I decided to fire them as we were paid up to date with them. I asked for a receipt and to dissolve the working relationship. I received an estimate via email which included a lot of add on work that was never started along with work I never asked for but they just did it anyway without receiving permission from me first. They are demanding for an additional 9k for work that was never started or finished. My wife is wanting to sue for not following code and damaging materials we provided along with stealing tools we bought when they left the job. I have all receipts to prove what was bought as well. I tried calling them to discuss what they sent over but haven't had any luck actually talking to someone. Also, this person was working through his llc but took payments to him personally and not through the llc. I'm having someone else walk the property in a few days to document all damages and rework needed to complete the job. I'm not sure if these people are going to sue me to pat for work that was never started or if they have anything against me in this matter. I'm still seeking legal counsel to make sure my family and I will be safe. I'm coming to biggerpockets to see if someone has advice for this or has gone through something similar.

Thank you everyone!

Hello BP!

I've been doing some research and I cant find the answer to my question so I'm coming to you! Right now I'm in the middle of a Fix and Flip and I'm trying to make sure all my documentation is in order for next years tax season! But I had some contractors come to the house and do some light work but it was all paid under the table in cash (about 1k). I didn't think about it at the time but is there anything i need from them like an invoice to be able to write off that labor charge? Or will the IRS just take my word for how much my total labor charge is?  

Also, on the topic, I keep records of mileage, gas receipts, materials, my purchase price, closing costs, basically everything i have spent has been recorded but don't have a physical receipt for everything. 

Any help would be greatly appreciated! 

Thank you!

@Rick Albert

Yeah I understand that. I feel the same way. I'll probably end up going for the basic appliances minus the fridge

I'm doing my first true flip right now and I'm curious if people install new appliances in the homes they flip. I plan on doing the dishwasher but is it a waste of money to go buy a brand new oven, stove, and microwave? If I don't install them would it effect the ARV at all?

I feel like it's standard to have those items when I bought my primary residences but the fridge is rarely included. Any help would be wonderful!

Thank you!

@Keenan Fitzpatrick

I understand what you're saying and it makes sense! I would personally be a little worried that some paperwork would be missed and such. I just need to find a realtor that would be willing to help with this process!

One thing I've looked into was wholetailing. Seems interesting!

@Alicia Marks

Thank you! That would be wonderful! I'll send you a private message now.

@Alicia Marks

Currently I live in Weatherford but I am open from Weatherford over to Dallas. I'd prefer something I could drive to in under an hour. But with the DFW area, I feel like the MLS properties and the ones I've been receiving from wholesalers are not the deals I expected. For a while I wasn't sure if I was analyzing the properties wrong or estimating the rehab to high or low. I've been looking for reliable contractors in the area but seem to be having trouble with that as well.

I've been contemplating on getting propstream to have more properties brought to me. But u would love to sit down and chat! Or a phone call to have some questions answered regarding the area!

@Steve Vaughan

Thank you for your replay! That is amazing that you haven't had to use a realtor for so many years! I've been very persistent and trying to get my first investment deal taken care of. But I can reach out to some people in my area to see if they hav3 any insight into the legality aspect of things!

Hey everyone!

So with the deals I'm getting im seeing smaller profit margins in the DFW area. I was thinking about going direct to seller and trying to aquire off market deals myself and then flipping them or renovate and rent.

My question today is, if I am able to find an off market deal myself, without using a wholesaler or anything, is the buying process the same as buying it with a realtor? I would more than likely use private or hard money to fund the deal. Or if it's in a cheaper area use my own funds then pull them back out. Also would I need a realtor to do this type of deal? Any insight would be greatly appreciated!

Thank you!