All Forum Posts by: Jenny F.

hubby and wife team over here in Michigan....licensed...investors too....

as a rule, I tell clients to get three bids.

Interview each contractor throughougly and check out the license with the bbb and check to see if the state website posts complaints.

Ask for references. Ask for 3 good ones and a bad one. (nope, im not crazy)....The bad one will tell you if the contractor showed up for work in a timely manner, if the contractor did everything that was asked and if the contractor completed the project.

You cant pick a good one 100% of the time, but you can help protect yourself.

Also dont be afraid to have the contractor sign a contract specifying your expected begin date and end date of the project and a percentage drop for each DAY that your contractor is not finished. But do be reasonable. Many times we crack into a project and other issues need to be addressed right away and you have to accomadate for that in the contract.

Good luck!

you could meet contractors nationwide on contractortalk.com. They have a place where you can post jobs.

Contractors have to pay a high price to get the leads from service magic, and others. The price ranges from 5$ to 75$ PER NAME. Please, if you go to service magic (or any of the other sites), keep that in mind because they DO NOT verify leads before they send them to the contractor.

I would also recommend servicelive.com. They are a new site with a different approach to matching clients and contractor's.

If you are looking for a contractor in SW MI, please pm me.

Thanks!

Im on the other side of michigan in berrien county. We have a very saturated market but actually prices are on the rise! I can't justify the prices they have tagged the majority of the real estate with and the market at this time is sitting because a-not enough QUALIFIED buyers b-not enough population to fill housing available c-very PICKY buyers (and i dont blame them) d-we too are losing a lot of our labor force due to the ecomony and overseas labor availability. :violin:

If you are looking into buying the property between the 25 and 35k range you need to do some research. I dont know if you have a friend who is a realtor, if not you should find one. That person will save you a lot of time with just a few clicks.

What are the comps in that area? How long did those properties stay on the market? What does the competition look like? If i hold it, what are the taxes going to be if it is now a rental? Can i get it to make a positive cash flow?

In my area, houses going that cheap are in the less desirable areas of the county (druggies, gangsta's...) (unless you get very lucky)

Good luck!

Understand that contractors take risks too. Being a contractor and an investor myself I can easily see both sides. :woohoo:

We are not all bad. some of us have moral values and wouldnt be able to sleep at night if we left a family high and dry and skipped town with their money. Some of us believe that what comes around, goes around.

When i intially consult with a client I tell them to get at least three estimates and interview each contractor. Get references! talk to the inspectors! Check out the state website to see if they have any complaints against their license. Have them request from their insurance company a proof of insurance to be faxed to you from them. If you dont like the price but like the reputation, talk to them. You would be surprised how much negotiation can save you.

I charge upfront: Materials and 1/3 labor down. I would be happy to let a client pay weekly (through completion) if they were nervous about the situation. I ask for proof of funds up to the amount of the contract. If the client wants to be the one to purchase the materials on their own (with MY list), i am happy to go get the materials and bring them to the project site. the project is completed in 3rd's after that and they know in advance what each phase of the project is and what they will be left with if they dont pay. (though I have never had that happen).

I even price comp for the client to find them the lowest possible price on the materials that they need.

Contractor's spend a LOT of time with prospective clients and these are hours that are non productive to the contractor. They can never be taken back and earned upon. For every hour spent with a potential client i have to pay several guys to go to the jobs i have landed. Then i spend the rest of my day getting materials and making sure my employees are performing per job specs and getting things done the right way the first time. That doesnt even include that materials changes or change orders from clients...."hey, while your in the kitchen installing my tile....could you move that wall out of the way and have my washer and dryer hooked up somewhere else?"

12- 18 hour days are not uncommon.

I have good credit. I have spent all of my adult life building that credit but I should not be expected to carry credit balances on my credit for materials that do not belong to me or my business. I need to use this credit to grow my business and branch into new markets (such as investing).

I have been flipping them but with the market the way it is I think i will be renting them out for a while until it would be more profitable to sell. Buy cheap, sell later high. LOL.

With renting them you dont have to glam them up so much, they are what they are as long as they are clean and functioning properly.

crentalguy is correct! I have purchased properties at WAY below value driving around! Many times they need MAJOR work, but are worth it in the end.

example: my first property abandoned paid 5k, spent 25 fixing it up (VERY HARD TO STICK TO AT FIRST) and every spare penny and minute of my time for 3 years LOL. sold for 80k. More recently 24k sold for 90k with 20 in and in 12 wks done.

Also, lately short sales. With so many foreclosures selling it is lowering the comps prices of the properties around the property in foreclosure and the banks cant get rid of it fast enough when they hear the comps. This is GOOD for the short sale BAD for the appraisals when your trying to sell it for profit. A good idea is to seal the purchase price (if paying cash, don't know if you can when financing).

Hi!

I am an investor (in my own company). Primarily I purchase foreclosures, pre-foreclosures and have noticed that even with a great credit score, it is getting harder and harder to get financing due to the sub prime fallout currently happening.

I have learned a lot over the last 6 years and have a lot to offer and hope to learn some new stuff from other experienced investors. Hope to type to you soon!