Los Angeles Contractor Needed

6 Replies

New investor with financing ready to go starting to make offers on distressed properties.  Looking for a Contractor to not only bid on properties I have under contract, but also willing to invest an hour of time here and there on prospective properties for ballpark estimates to decide what/whether to offer.

First, I would find a Realtor who also invests in real estate. They should know of one or more contractors they recommend. Secondly, that Realtor should be able to guide you in what it costs to fix a place up. I would recommend doing sight unseen offers with an inspection contingency. If you are dragging contractors out to every property that comes on the market, you're going to annoy them very quickly and they will stop showing up. If you already have a deal under contract, then they will be much more interested to come and talk to you and give you a quote. Chances are, you are going to have to make 20+ offers before getting one so you will be wasting your time and the contractors time trying to go to every single property. This is a relationship business and you'll lose contractor relationships pretty quickly that way.

Colin Smith, Real Estate Agent in CO (#ER.100052152)
719-232-6709
Originally posted by @Colin Smith :

First, I would find a Realtor who also invests in real estate. They should know of one or more contractors they recommend. Secondly, that Realtor should be able to guide you in what it costs to fix a place up. I would recommend doing sight unseen offers with an inspection contingency. If you are dragging contractors out to every property that comes on the market, you're going to annoy them very quickly and they will stop showing up. If you already have a deal under contract, then they will be much more interested to come and talk to you and give you a quote. Chances are, you are going to have to make 20+ offers before getting one so you will be wasting your time and the contractors time trying to go to every single property. This is a relationship business and you'll lose contractor relationships pretty quickly that way.

 Thanks for the reply. Yes, that's what I'm trying to avoid -- annoying potential contractors. I'd definitely be willing to pay someone for an hour of their time -- not sure if anyone does that.  

@Andrew Robbins

I think instead of having one lousy contractor giving you a bad estimate, your best option is to find one right one that will work with you.  As Colin noted, you want to be serious with the contractors and have the property under your belt.  After few flips, and building relationship, they would then come out and give you some estimates.  I work with multiple contractors everyday so message me if you need further assistance or clarification!

Originally posted by @Andrew Robbins :
Originally posted by @Colin Smith:

First, I would find a Realtor who also invests in real estate. They should know of one or more contractors they recommend. Secondly, that Realtor should be able to guide you in what it costs to fix a place up. I would recommend doing sight unseen offers with an inspection contingency. If you are dragging contractors out to every property that comes on the market, you're going to annoy them very quickly and they will stop showing up. If you already have a deal under contract, then they will be much more interested to come and talk to you and give you a quote. Chances are, you are going to have to make 20+ offers before getting one so you will be wasting your time and the contractors time trying to go to every single property. This is a relationship business and you'll lose contractor relationships pretty quickly that way.

 Thanks for the reply. Yes, that's what I'm trying to avoid -- annoying potential contractors. I'd definitely be willing to pay someone for an hour of their time -- not sure if anyone does that.  

 idk, but maybe you missed the part about burning bridges by dragging contractors out to a job that doesn't yet exist. Paying them for an hour is unlikely to be any different.

Instead you should learn how to lean on others to help you estimate the $ figure of any repairs on a deal you are considering, or learn how to do it yourself. Here's a link to a book that might help http://get.biggerpockets.com/flippingbook/

As an fyi, I had an investor who I was a partner with who wanted to get "hard" numbers from a contractor for a warehouse we were looking to buy. He wasn't comfortable with my estimate (I had already completed multiple similar projects) so he brought a contractor out to the job site. In exchange for the estimate my investor partner brought a corrugated box full of steaks (the investment partner owned a meat company) as a thank you to the contractor.

After the contractor left he handed me the estimate (I had been inside looking at some electrical stuff). I looked at the estimate and asked him how much that box of meat cost, he said "about $500 dollars". Laughing I told him, "well you saved about $500 bucks". The contractors estimate was $1,000 less than my rough estimate.

When you know the numbers, or are aligned with someone who does, lean on it and use them. If you're not yet aligned with someone then make that your next step. I know someone mentioned working with a knowledgable real estate agent. If you develop a relationship thats mutually beneficial with an agent you can use this agent for estimating work, BPO's, etc., while still delivering value to them by allowing them to act as a buyers agent on deals where you can insert them, and promising (and also ensuring them) you'll list properties with them if you find the need to market properties with an agent.

@Andrew Robbins

Shoot a PM to @Manolo D. , he's a contractor that can help you with your fix and flips.

I have others that I can recommend that are no on BP but understand the rehab business in L.A. quite well. PM if you'd like another recommendation.

@Joshua McGinnis Thanks for keeping me in mind.

@Andrew Robbins Let me know what you need, I'd be able to help you out or if not, point you to the right direction.