Trying to get started in RE investing in the Tallahassee, Florida market. Do any current local investors have experience with any quality, and more importantly, eager/hungry contractors that want to get the job done???
I ask this because i have now spoken with three different contractors, walked the property, and discussed proposed budget and repairs with them. None of which have come back with the much needed bid as of yet. (This has been over the course of a month) I even told the last contractor that at this point, I will more than likely award the job to whomever submits their bid to first.
The construction here is busy, but i don't understand why I can't obtain a bid at least. I would like to connect with a contractor that I could likely use and have on my team for future endeavors. Any references for an eager contractor would be greatly appreciated. Thanks in advance!
Hi @Buck Savagewelcome to the forum.
I can ask my agent up there if she knows of any. She is an investor herself and has a real estate office up there. I got connected with her from my agent here in Gainesville and have only been working with her for a little while. If all goes well I plan on using her services to buy and I know she has to have seasoned contacts. I already got a company I'm looking into for home warranties.
I can also ask some friends of mine the live in that area.
Are there any specific contractors you are looking for? Like what type of work.
Thanks for the reply! I neglected to mention that it is an FHA 203k loan that I'm pursuing. So with that said, I'm more so looking for a GC who is FHA certified, due to FHA requirements. Any help would be greatly appreciated.
At this point, I may consider seeking another form of financing that may not create as much of a headache for GC to submit bids.
@Buck Savagethis is the response from my agent.
According to the expert in town on FHA 203K loans - there is no such requirement for FHA loans. He says there are some certifications out there but none of them are required. Did someone tell them it had to be a GC that was certified?
You can check with Ron Byrom at Univerisity Lending - No one has done more of those loans than him - Ron Byrom 850 2285125
@Daria B. Thanks for looking into this for me! Ron Byrom is actually doing my FHA loan for me!! lol. So, thankfully I'm in good hands with with that aspect! I was under the impression that the contractor did have to be FHA certified, but good to know that is not the case. Thank you for that.
With all this said, it is just the three contractors that are keeping me from moving forward with my current closing date (6/25). I'm afraid that it's obvious that we won't be closing on this date now due to the lack of much needed bid(s) from my timely contractors.
I'll call Ron on Monday to see if he has any references for a good contractor. I'm sure since Ron is the go to guy with these loans here, he must at least be familiar with or know a contractor that is regularly participating with these types of loans. Thanks again Daria!
LOL @Buck Savage
That is funny, a very small world. Looks like you picked a go-to guy right off the bat. Good job!
So are you flipping this property? When you do decide and if the GC does a great job you will have gained a resource. Although I don't do flips, a good GC is a good GC so if the works out and I need a GC in the future, I'll knock on your door. :)
This property will be a buy and hold, but with some much needed TLC for future tenants. I hope to do some flips after I've acquired several rentals however. The three contractors I'm hoping to get work from are all reputable with quality work, just need them to get off their butts! lol. I will be sure and keep you posted on who gets the job and my feedback on them for you!
In the meantime, if you ever need any suggestions or references on any skilled trade workers; i.e- roofer/gutters/siding/etc don't heisitate to reach out to me. I know some guys who do quality work here in town. Enough that I could probably get this job done myself through them if I wasn't required to go through a GC on this particular project! lol.
I work in the construction field here in Tallahassee and know that as you said construction is booming. You probably already know this but there are three different types of "general contractors" RC-Residential Contractor, BC-Building Contractor, and GC-General Contractor. In FL, the RC can do all of the residential work besides items that require a specialty license like pools. The BC can build up to three stories and the GC can build above 3 stories. With that being said I'd look up some residential contractors instead of GC as insurance requirements are lower for residential and therefore their quotes should be lower...should.
As far as why it's hard to get a bid, from the contractor's point of view we bid the work we can make the most money on. So if your rehab is a $4k job with 20% markup and there is an abundance of $50k work at 20% they won't use their time pursuing your job.
Just my two cents.
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@Raymond B. You're the man!!! LOL. Thank you!
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