first fix/flip: need gen. contractor (?) and insurance referral

10 Replies

Greetings fellow BP members

I jumped into the deep end and have just accepted a counteroffer on my FIRST fix/flip in colorado (teller county).  the house was in the throws of a major renovation when the owner died; being sold "as is"; but have an "inspection" contingency.  

I am thinking I need a General Contractor and not an inspector to evaluate if work to date has been done correctly and if there are any major red flags.  For example, check: new electric box (no electricity now, wires everywhere!); new furnace (on propane), newly installed windows, plumbing (well and septic) connected to house, but no fixtures (no toilet, sinks, shower). 

House is in Florissant - can anyone recommend a General Contractor - or inspector - to tell me if there are red flags, and maybe an estimate to finish.  

As the house is currently unlivable (from insurance stand point) - what type of insurance can I get (construction insurance?) and can anyone recommend a company. 

I do not currently live in CO; currently do not own a home, so no local company to work with

Thanks so much for your help

Kelly

congratulations @Kelly G.

If you don't get a lot of referrals here, I suggest you look up active BP members in colorado. Call them or send them PM introducing yourself and asking for help. 

In regards to insurance, you need a vacant house insurance policy. Same active BP members should be able to help out. 

since you're in CA, how do you plan to supervise your first flip? 

Hey @Chris T.   thanks for the note.  

Actually - I'm not in CA anymore (nor Kansas - tee hee).  I sold my house in CA in Jan and have been 'on the road' - enjoying life and lookin' for a new home.  Tentatively (likely) settled on CO - was looking for a fix/flip I could live in while I 'fixed' - and while I looked for that 'near' perfect property to call home - hopefully for the last time (tired of moving).  So . .  

Here's hoping some CO BP members chime in!  

Kelly

@Kelly G. There are two kinds of insurance the aforementioned vacant house policy or builders risk insurance. Since it's "under construction" then I think builders risk is more appropriate. Hard money lenders might have leads on this. I know Merchants Mortgage out of Denver requires insurance so they might have some insurance folks they are tied into. I'm thinking builders risk might not work if you plan to live there. Teller County has a rep for being wild and free. Do they even do certificates of occupancy.  I would think that if you are planning on living there while you fix it up then a conventional home owners policy would work. They might not like it if they find out but I don't know of any insurance prohibition to working on your home while you live in it. I would call an agent out of Colorado Springs, tell them you are buying a house to live in and need insurance. I'm sure they will send you a quote and you can close with no questions asked.

@Kelly G. - Based out of El Paso County, I may have an inspector willing to travel there but not sure at the moment. Feel free to connect and we can go from there. Great work landing a CO deal from CA! How'd you do it?

Greetings Bill (@Bill S. )  Thanks for the note.  The house is a manufactured home that was being remodeled/renovated;  there was a 'certificate of occupancy' clause in the purchase contract but I"m not sure why - have a call in to my agent for clarification.  According to Teller County - a C.O. is only issued for 'new' construction.  

Perhaps I was thinking of insurance where a mortgage is involved;  this will be a cash deal - so perhaps insurance is not the issue I thought it might be - guess I just need to pick up the phone!  ;-))

Hi Norberto (@Norberto Villanueva )  - thanks for the info;   I need to clarify:  I didn't 'land' this deal from California;  I've been traveling around for months now - will update my profile when I finally land somewhere!  (and it remains to be seen what a "deal" this really is!)   I needed a place to live while I look for my 'permanent' home and it seemed like a good idea to find a fix/flip rather than just pay rent!

cheers

Kelly

Hi kelly!! I actually live in Teller County and am working on my first deal in Teller also. From my experience, you may have some difficulty with insurance. A lot of my neighbors and such have been dropped and experience issues due to the extreme requirements on fire mitigation. If it is a treed lot, you may find some difficulties or need to mitigate. My agency has been great though. If you occupy probably not an issue but they don't do non-occupant. Anyway it's Allstate, Wermers agency out of Colorado Springs. If you find a good GC, definitely would like the info! My mom is building in Florissant and her experience has been that getting anyone to come to teller county has been a real pain!! We are out there and winters are especially difficult. Labor is harder to come by and those with knowledge and experience are pretty busy. The county can also be difficult at times, and tend to move at a snails pace. It's a different world in some ways and as bill said, wild and free! Kind of behind the times really. But a beautiful place to live! So welcome!! And I hope all works well for you! If you have any questions on the area feel free to message me!

Hi Kelly,

Any Allstate or Farmer's agency can help you with the insurance. American Modern (Allstate) and Foremost (Farmer's) will be the actual companies.  And it should be a vacant premises policy. Good Luck with the GC and project. 

Hey Frank (@Frank Robinson ) thanks for the note - will call them on Monday - enjoy your weekend

Kelly

Kelly, good job on your possible first purchase. I have to agree with @Holly Scott . I have a client that is in the process of purchasing a house and lot outside of Cripple Creek. They have run into several issues due to the distance from Colorado Springs. Even people in Woodland Park are very busy and do not want to make the drive out there. If they do, they are booked for months. I am not trying to be discouraging but just give yourself plenty of time to get your contingencies investigated. 

Tim 

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