Shawnee, KS · Member since 2008 · 30 posts · 0 votes
Good contractors are so hard to find?
I dont have any experience dealing with contractors, but I frequent several REI message boards and it seems to me that one of the biggest complaints I see over and over is how hard they are to find.
I ask this because, I am trying to break into the rehab side of real estate after I get enough start up capitol by doing Lonnie deals.
Long story short, I have a cousin doing rehab/remodel work in another state, but he wants to come back to Kansas. I am looking for a career change(one where I am the boss again) and would like to have his company "satelite" over here to KS.
What is the best way to convince/get your foot in the door to people like you that need contractors on a daily basis.
I will be attending my first REI club in a few weeks, and would like to get the ball rolling. Just curious, what you would ask me if I told you about a good Contracting company you should use. How could I persuade you to just give us a try?
That's been one of my biggest problems too. I have found two types of contractors so far.
1. The guy that shows up at 10:00 and then leaves at 3:00. This is the same guy that asks for money up front, then two days later needs to borrow $20 for gas and food because he hasn't eatin in two days.
2. The expensive contractor. Does excellent work in a timely manner but costs an arm and a leg.
I'm still looking for contractor type #3... Like #2 but less expensive!
I hear ya.. I asked 3 different painting contractors to give me estimates to paint the outside of my personal home. One actually showed up and gave me a 4K estimate. I went to Home Depot and bought an airless Graco for $400 and $200 in paint and did it myself in 3 days.
It comes down to the fact that you have to know how or be willing to learn how to do almost anything. So when these drunks don't show up, your project doesn't come to a stand still.
... I have found two types of contractors so far...
1. The guy that shows up at 10:00 and then leaves at 3:00. This is the same guy that asks for money up front, then two days later needs to borrow $20 for gas and food because he hasn't eatin in two days.
2. The expensive contractor. Does excellent work in a timely manner but costs an arm and a leg.
I'm still looking for contractor type #3... Like #2 but less expensive!
I have found that the 3rd type is the following…
A guy who shows up, puts in an honest days work, does a good job, asks for money upfront, but you tell him NO, he does good work so you give him money every couple days to keep his personal life in order long enough to finish your job.
This is who I found that has been working well for me… Sure I would like it if I didn’t have to give out money every couple days… But heck, if that’s what makes them show back up the next day and put in the hours, I don’t mind paying a couple times a week. For sure it is the less of all evils!
It comes down to the fact that you have to know how or be willing to learn how to do almost anything. So when these drunks don't show up, your project doesn't come to a stand still.
Couldn't agree with you more TC! I like to learn how to do everything. It give me a better idea of labor cost. For example, building a fence, did it once, will never do again, a lot of labor involved, in the end didn't really save money, only personel satisfaction knowing it was done right!
I'm pretty lucky. I am partnered with my dad who owns a contracting company here in Houston. He has been doing it his whole life. They do pretty much everything. I get 90% of the contracting at wholesale prices. The only real thing we sub out is flooring, though we have a great contact that gives us good prices because we always use him.
This is one major reason we got into investing in real estate!
That's been one of my biggest problems too. I have found two types of contractors so far.
1. The guy that shows up at 10:00 and then leaves at 3:00. This is the same guy that asks for money up front, then two days later needs to borrow $20 for gas and food because he hasn't eatin in two days.
2. The expensive contractor. Does excellent work in a timely manner but costs an arm and a leg.
I'm still looking for contractor type #3... Like #2 but less expensive!
I am number 3! I am cheap, I am on time, and I am both because I LOVE what I do. I am not a licensed builder, in some states I can pass the county tests if need be to do a job for someone who is dead set on alicense, even if my pics dontprove it.
I am JUST AS GOOD as any contractor for any trade, especially tile, laminate, resurfacing, capentry, some electrical (cant wire a whole newhouse from scratch but canchange out or add to existing wiring and change out boxes, etc.), plumbing, pools and their finish,pumps, hardwood, cabinet installs, counter installs, paint, you name it,I can do it and I do it so cheap for the quality. Best of all,I TRAVEL ANYWHERE to do a worthy job.
Next best thing that makes me actually a #4, I have 5 years REI experience, and I know exactly how to optimize a house for its size, location, and what to do or where to get materials at rock bottom. What more could you ask for? I am hurting for money badly though I JUST caught wind my father is backing me again to do REI again after 2 years of poverty, but I am scared because I need to flip now, I could not install my poor economy business plan before he retired the frist time. So, I really should be relying on rentals and buying ONLY at extreme steals to resell at a steal as florida is the WORST in the USA for the housing market and value decline.
OHH yea. Worldwide! Trying for work in Shanghai now! Anything to put money in my pocket or atleast to earn a free trip. I work fast and so cost effectively (cheapest materials) and so low in my labor charges that I tend to get a LOT of work. If you like chocolate, wouldnt you eat it for free? How about if someone paid you to eat it?? Thats how i feel bout rehabbing! I LOVE it!!
I have had people al the way from LA ask me to come and do their homes. Mainly,cuz I am a volume fundamentalist,not a profit collector. Low prices provide more work, more work=more done jobs or I call them "free 10-20 year ads" for others to see, and price slashing takes competition out of the game eventually, ruinous competition if you will. They wont compete with the same quality I do at anywhere near my prices, cuz its about the same or better than they provide.
I never did a job I regretted even if I lost money, because it made me money when someone else saw it and hired me later down the road.
I can relate to the business minded comment thing above. Ironically, I have 7 years of college and 2 degrees, one in management another in psych, and probably a masters equivalent experience in computers, networking, repair, building, "WHITE hat hacking," programming, 15 years 8 hours a day of non stop learning. I dont consider myself a laborer, but a businessman who makes money getting dirty and MANAGING the dirty task. I make my little bit of money because of how I market my wares, how I service the people,and how I actually KNOW how to sell and have been trained to do so. Ironic statement we were discussing the other day here at work.
Most guys go in for the one paycheck and never think about the fact REPEAT business provides cashflow. No company will make it JUST advertising in books and papers. Its a client relationship you must form,youmust be a salesman, and you must also beat down the doors to get those who can feed you business.
When I lost my REI co, I never had to find property. I had 2 lawyers pumping me full of estates, TONS of realtor's calling me before listing good properties, it was all spoon fed sweetness that I spent 3 years developing. I cant see having made it by only locating my own deals all the time. The success lied in those around me and the relationships I maintained with them.
Hell,I was too cheap to hire an accountant. id that myself. Hate math, but I did my figures and managed my books and knew EVERYTHING going on internally. I had 800k in a BLC to spend, and only I did all the work, which got quite extensive. But, no way I coulda done THAT without college.
Now, my resume is out and everyone contacting me is about upper management positions. Cant get a job though. Employers HATE hiring business owners. They are set in theirways and pick up bad habits. They must be untrained and retrained to comply with the new employer. FACT I was told by a human resources manager!
Of course, I will be poor til the house sells or I make 200k again. 100k I still face bankruptcy soon. But, I been at this new company 1.3 years and its getting up there. In REI, I began with 15k and had it to $750k in 3 years, with NO house hunting all lead feeds from clients.
Your so right above, its not what you CAN do, its how you MANAGE the ways in which it gets done! The best builder in the world with most impresive homes would never last if he did not understand the business side of it and manage his company correctly. Your number ones never last, the number 2 guys stick around but never do that well, it IS the 3's that are weathy. They're hard to find cuz they are busy and also because 95% or all contractors go belly up within a couple years!
Ok let me get this straight. You had people bending over backwards getting you good deals on real estate, you had $800k in the bank, you have 2 college degrees and it sounds like you are the best thing to happen to construction contracting since the invention of the cell phone. But now 2 years later you are living in poverty and your willing to travel anywhere with all your tools in tow and can still do the job as competitively as any contractor just so you can show people how great your work is and you don't mind losing money because you will make it up on the next job.
Well I don't know about the rest of you but I'm SOLD. Come up here to Chicagoland I've got enough work to keep you busy for atleast the next 20 years. OK maybe I'm not being fair. Maybe you can teach us something here, afterall I think that is why most of us are here.
What went wrong? What I mean is how did you go from being on top of the world 2 years ago with $800k in the bank and having deals "spoon fed sweatness" thrown at you to where you are now begging to drive across the country to be little more than a handi-man for a couple of bucks? Maybe you could teach all of us how to avoid the pitfalls you must have hit to cause such a crash.
Well,goodquestion. First, I do own a relatively successful company. BUT unless I net 200k I cannot pay my bills because thats the life I was adjusted to.
Simple answer? And probably destroy all credibility I have but what the hay Ive nothing to hide anymore: 2 years ago: A very sick marriage and divorce to a cruel woman who admitted to trying to drive me to suicide AND even tried overdosing me in my food with MY meds so it looked as such, for my 3mil life insurance which suicide was exempted by then, after that Mental illness like post trauam stress and high risk depression, then an addiction to alcohol, painkillers and cocaine at $2000 a week to cope with feeling like I was no longer myself, just a person in hell on earth.
I laid in bed 6 months, nearly died, while the bubble popped, my mortgage doubled, and I sat on 4 untouched homes. I never had 800k BANKED, I had a loc of 800k and at ONE point DID have about 750k briefly. When she left I had 145 left, all equity which I pulled out to max out my line before she did. No WAY I could work, a psychiatrist ALMOST deemed me incompetent, so I had to survive on that money. All went to my 2.5k mortgage, drugs, doctors, therapy, 25k got conned by a "friend," the rest to the wife and lawyer.
My father had the 800 loc for me in his name I cosigned, and he silently owned 25%. When he saw the condition I was in when coming to Florida, he cut it off. Too risky. No blame here! When I finally went into rehab on my own, I started to get the 4 homes done and lost on 3 from the collapse, and broke even because of one.
My house I owe 300k, was worth 450k, not its 275k. Its purely financed on a line of credit, prime plus 1, interest only. couts ORDERED me to sell a house I owe more on than its worth! I am in debt $500,000 which wasnt an issue til I made a common mans salary. It took a year and a half to recover from the damage.
So yeah, I got screwed good. Now, I beg for work because I am fighting to return. I have not been able to work much or even think untill this past October. So, 4 months is all I really have had to PUSH for the gold. Never satisfied.
Mainly, I LOVE rehabbing, building,learning. Its where I get my self esteem. I like it over the money. And I know a LOT about it. Went to contractor school, real estate appraisal school and WAS a licensed appraiser, I have done a lot.
Sorry if I offended you, but after 2 years of living in darkness I can hardly pull any memories from, I am excited to be alive, because I should NOT be after what I put myself through.
Amerikote,
Thank you for being so open about your situation. The topic was about good contractors being hard to find. You sound like you understand the business side of things as well as the customer service and quality sides. I can feel that you have the burning desire to be the best tradesman you can be in the REI business. I know you'll do well, and I wish you luck!
It is very hard to find contractors that will work in my area. If they do respond they usually want to charge you enough so you are their only job for the year. :D
I recently purchased a reo as my primary home not to flip. It is an older property with a slate roof. I got one estimate of 7 thou and another estimate for 1200. This is a big difference. I will try a 3rd estimate and see why the big difference. These estimates was just to replace a few tiles.
The property needs everything this is going to be a big project for me. I have done small rehabs before but nothing this big. It should be interesting or heart breaking for me.
A slate roof is probably one of the most expensive roofing materials out there (I've had a roof cost $120,000 before). They can be expensive to fix. While the difference between 7,000 and 1,200 dollars do sound like a big difference I think it is more important to study the bids closely and talk with the contractors to get a full picture of what scope of work they are proposing to do. While one may only be proposing to fix a couple of broken tiles you can see from the ground the other may have found more issues and may be proposing to do more work than the other. Get atleast one more bid and just make sure all bidders are qualified to work on slate roofs. Some may tell you any roofer can fix a slate roof but I know roofers who also think they can install asphalt shingles yet for some reason within a few years they end up with a leak. Now I wonder why that is? Was it worth it to save a few bucks to have to replace it a few years later.
Have you gone to your local RE association and looked for refers of good contractors? The best way is probably to find someone that can vouch for a contractor that has worked for them before.