Hiring contractors and funding the flip

Hiring contractors and funding the flip

Lender · Member since 2018 · 16 posts · 1 vote

I live in North Dakota and started buying real estate on my own as my husband was not keen on the idea. I have 2 SF homes and a 4 plex currently. My husband doesn't have much time to help me as he farms and his time is kind of rare. I want to buy and flip however I have never done this before. My question is regarding hiring contractors. How does one make money when the contractors in my area charge the going rate? I know I need to get the best price when I buy but even still I think the end result is going to get eaten up by the contract labor. I do as much as I can regarding demo but limited. I do have a line of credit I can access for expenses and labor. Need tips on flipping and hiring contractor.

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  • Investor · Garrison, ND · Member since 2020 · 24 posts · 20 votes
    4y

    @Jackie Bladow

    Hey Jackie! The answer is in your question. You should always shop around for contractor quotes, but the work costs what it costs and if after all of that the spread is not worth your time and investment, then you may need to research foreclosures and other off-market leads. Otherwise it could be worth exploring another market.

  • Real Estate Investor · Sacramento, CA · Member since 2010 · 292 posts · 103 votes
    4y

    As Otto said," the work costs what it costs."  Yes, sometimes.  I've found there are usually two prices when shopping for contractors. 1. The amount they'd like to get,  and 2, the amount they will accept to get your business. Try to find the contractors who are flexible in their pricing because they want the work. Assuming they are good, of course.   But Otto is also right in that if you can't get  contractor labor within your budget, you need to save money in other ways or  forget the idea.

  • Lender · Member since 2018 · 16 posts · 1 vote
    3y

    @Otto Kinn Thanks for the tip

  • Lender · Member since 2018 · 16 posts · 1 vote
    3y

    @Ed B. Thanks for the advice.

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