All Forum Posts by: Steven Mitchell

But there are just so many to choose from.  We are flipping houses but our sourcing is our big bottleneck.  

What have you guys used that you would recommend?  

thanks for all of the responses guys, Ill make the changes.  Im a little butt hurt his markup is 3x as high as what it should be on the little items that pop up.  In my opinion, he's doing it because we are married in this project and he thinks I don't know better (I don't but I have other rehabbers I run stuff by).

new rehabber here.  Im on my third.

First time - hired a GC.  he didn't show up his entire first week.  I was so new I wasn't sure if this was normal or not.  Fired him.

Second time.  Hired a GC.  didn't show up the first week.  Once the work was done there were little things here and there that weren't done he didn't include on his scope of work (and which i didn't catch) so I had to hire him again to complete it.  Again, was completely new and didn't know if this was normal or not so took it on the chin and went forward.  All the little stuff like replacing fixtures and lights that I assumed was in the bid because we had talked about it on the walkthrough.  

Third and current time - hired a gc.  asked for a turnkey bid.  Didn't realize he didn't include landscaping so now have to pay for that.  Today its the blower in the ac has to be replaced for 675$ (my other project manager says it should be 400$).  The day before I caught that the crack in the outside brick due to foundation issues wasn't in his scope of work along with some bad bricks on the bottom level of bricks.  The crack is about half an inch wide and runs from the top to the bottom. He says the crack wasn't there until after the 4 inch foundation work was done but I know it was ( i didn't take pictures! learning here).  He wants 750 for it when Ive been told by a mason it should be 200 on a good day.

Anyways, one of my project managers is amused to hear my stories as she's rehabbed over 300 doors and this doesn't happen to her.  Im assuming its me.  What am I doing for all of this to happen?  Or, is this normal and Im just being a penny pincher and paranoid?  In my view, the contractors are leaving stuff out of their scope, hoping i don't catch it so they can tack on fees in the middle while I'm married to them.  Its happened to me twice in a row now.  This GC must be semi legit, I was walking through another of his work sites and his investor showed up, check in hand.  So other people are employing him. 

I come to you for your opinions because if Im being unreasonable I need to know.  And yes I realize one of the take home lessons is to create the SOW myself and check it against the actual bid, lol.  Don't hate, in my business this constant trying to get one over on each other doesn't happen.  

how are you finding properties that cost so little but generate so much cash?  I would pay you what you said that portfolio is worth with that math....yesterday.  

 925 on a 55k house? holy crap, is that normal for your market?

the 25k you get from flipping the house now would be better spent putting down on a property with a higher rent to price ratio than keeping it in a property with a lower rent:price.  you would save on the selling commission and the cost of a 1031 exchange though, but whats that compared to years of better returns.  

thanks for the answers guys

Hello,

We currently flip props in san antonio.  We are looking for someone who would like to manage the process and in return get a cut of the profit.  

We buy from a wholesaler who estimates the after rehab value as well as the rehab cost.

The manager would be responsible for viewing the properties, closing on them, interviewing the contractors, taking bids, paying the general contractor, turning utitlies on and off, obtaining the general permit, coordinating the different personell etc.  We just want to be the money guys.  

Hit me up if interested or know of someone.  This is a great opportunity for a leasing agent to really learn the business and increase their income.