Cleveland · Member since 2021 · 95 posts · 52 votes
I'm starting my search for a SFH in the Ohio City/ Tremont area. I'm looking for properties that are in need a significant rehab. I'm in search of a reputable investor-friendly GC. If the rehab is done on time and in budget I would have no problem using him for all of my projects in the future. I plan on BRRRR'ing 3-4 properties per year and would gladly give him/her all of the business. If anyone could recommend such GC I would be very appreciative.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
5y
Agreed with the above that GCs are slammed right now, and even me reading your 3-4 BRRRs a year my first reaction was 'let's see when reality hits'. I'm not saying it is impossible especially in a better cash flow market like OH, but it is definitely not going to happen easily. So hearing it before you've done even one house leads to the implication that you're out of touch with the reality of what it takes to make this happen.
What I would suggest is to pursue this two ways
1) keep looking for a GC, but you're looking for the GC that is a guy with his own 15 year old truck and 1 or two guys that work for him. Almost glorified handyman style. Those guys are often going to be your most cost effective but can do good work. But you will have to be ready to manage them pretty regularly otherwise they can also get upside down on a project.
2) look for a less heavy rehab, one that is more cosmetic and you can do a lot of it. This will let you learn as well as manage the couple guys who you might hire for specific items like trim and tile etc. That is also where you are likely to find your guy above...they are usually a referral from another trade that has worked with them. It also helps you build credibility as someone that has done a project before.
I'm starting my search for a SFH in the Ohio City/ Tremont area. I'm looking for properties that are in need a significant rehab. I'm in search of a reputable investor-friendly GC. If the rehab is done on time and in budget I would have no problem using him for all of my projects in the future. I plan on BRRRR'ing 3-4 properties per year and would gladly give him/her all of the business. If anyone could recommend such GC I would be very appreciative.
You're not going to want to hear this, but the issue you are going to run into right now is no GC worth their salt is going to want to talk with you. You just aren't far enough along in the process to be a valuable lead for them. You need to own a house and want bids for work on that specific house before you reach out to GC's.
Everybody says things like "I am going to buy a bunch of houses and you can do all of them for me" whatever you do bro, DO NOT say that to a GC. Saying that will immediately get you labeled a jerk off by that GC. We hear that crap 30x a day. And the people who say it are not the ones who end up buying multiple houses or doing multiple rehabs. Almost like clockwork those are the types of people who never invest in anything.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
5y
Agreed with the above that GCs are slammed right now, and even me reading your 3-4 BRRRs a year my first reaction was 'let's see when reality hits'. I'm not saying it is impossible especially in a better cash flow market like OH, but it is definitely not going to happen easily. So hearing it before you've done even one house leads to the implication that you're out of touch with the reality of what it takes to make this happen.
What I would suggest is to pursue this two ways
1) keep looking for a GC, but you're looking for the GC that is a guy with his own 15 year old truck and 1 or two guys that work for him. Almost glorified handyman style. Those guys are often going to be your most cost effective but can do good work. But you will have to be ready to manage them pretty regularly otherwise they can also get upside down on a project.
2) look for a less heavy rehab, one that is more cosmetic and you can do a lot of it. This will let you learn as well as manage the couple guys who you might hire for specific items like trim and tile etc. That is also where you are likely to find your guy above...they are usually a referral from another trade that has worked with them. It also helps you build credibility as someone that has done a project before.
Cleveland · Member since 2021 · 95 posts · 52 votes
5y
@James Wise
That’s exactly what I was looking for! I should of asked this in my question, but I didn’t know at what point in the process to find a GC. Thank you for clarifying that once I purchase the property, it is then that I should look for a GC.
Agreed with the above that GCs are slammed right now, and even me reading your 3-4 BRRRs a year my first reaction was 'let's see when reality hits'. I'm not saying it is impossible especially in a better cash flow market like OH, but it is definitely not going to happen easily. So hearing it before you've done even one house leads to the implication that you're out of touch with the reality of what it takes to make this happen.
What I would suggest is to pursue this two ways
1) keep looking for a GC, but you're looking for the GC that is a guy with his own 15 year old truck and 1 or two guys that work for him. Almost glorified handyman style. Those guys are often going to be your most cost effective but can do good work. But you will have to be ready to manage them pretty regularly otherwise they can also get upside down on a project.
2) look for a less heavy rehab, one that is more cosmetic and you can do a lot of it. This will let you learn as well as manage the couple guys who you might hire for specific items like trim and tile etc. That is also where you are likely to find your guy above...they are usually a referral from another trade that has worked with them. It also helps you build credibility as someone that has done a project before.
Solid explanation on a great point I think a lot of investors don't understand. I am a GC. What a lot of investors think they are asking about is a GC like me. Big overheard, a fleet of vehicles, marketing division, accounting division etc......But what they are really asking about is guys that do sub work for GC's like me. Guys like that aren't out there on BP doing marketing and typically aren't professional enough to get their own flow of end customers. If they were they wouldn't be doing sub work for people like me.
Cleveland · Member since 2021 · 95 posts · 52 votes
5y
@Matt Devincenzo
I understand the fact that I plan on BRRRR'ing 3-4 properties a year seems far fetched, especially since I haven't done 1.
I would prefer a lighter rehab to start, however it’s seems the better deals are found in the properties that need a significant rehab.
Thanks for the input on using a skilled handyman as apposed to a GC. This would be a good route to go for a more cosmetic rehab, but in my inexperienced opinion, if I go down the route of a significant rehab you will get what you pay for with a skilled handyman.
Investor · Foothill Ranch, CA · Member since 2021 · 35 posts · 25 votes
5y
@Chase Lowry
I understand the thought process for wanting to find a GC BEFORE purchasing a property because you will need to know the rehab budget to calculate your offer but people are busy and it’s likely easier to find a GC (or glorified handyman) AFTER you’ve purchased the house. So how would you go about estimating your rehab costs before you purchase if you don’t have a GC or handyman to walk the property?
This is a question all new investors have to think about until they get experience, including myself.
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
5y
No GC will pick up the phone out there if you don't own the property yet. Do you know how many people say what they "plan to do" here on BP that never even bother getting pre-approved, let alone buying a place? Own the property first and then the GC's will take you more seriously.
Thanks for the input on using a skilled handyman as apposed to a GC. This would be a good route to go for a more cosmetic rehab, but in my inexperienced opinion, if I go down the route of a significant rehab you will get what you pay for with a skilled handyman.
Make sure that you understand that most 'skilled handymen' are not licensed. If they could get the license they (usually) would. And in most states, you must be licensed to do work in excess of $600, which will severely limit the scope of a project you can undertake. He can't charge you $600 on Monday and then $600 more on Tuesday, it's $600 total.
That's why we have General Contractors.....
And also bear in mind that it is almost always the homeowner, not the Contractor, that causes the cost over-runs and delays in scheduling....