Rental Property Investor · San Antonio, TX · Member since 2015 · 272 posts · 50 votes
I am about to flip our first house and am going to get bids from contractors for the renovation. So my question is, do I tell the contractor that my intention is to flip the house or should I not give any reason at all? I'm concerned that the contractors might think I have extra to spend. Does being a flipper make contractors over bid and try to charge me more than a regular renovation?
Flipper/Rehabber · Washington, DC · Member since 2015 · 62 posts · 21 votes
11y
Hi Tristan,
I'm a GC and I do not base my pricing on who the person is whatsoever. We are an all referral business so I'm always concerned that my prices be comparable across jobs if they're of the same quality just in case my clients ever compare prices.
We don't do work for flippers (other than ourselves) because when we first started we prepared quotes for a couple of flippers and they wanted to squeeze our margins to nothing. The only way I could make sense of their push back is to think that they wanted us to scrimp on quality. I'm now a flipper so I know that doesn't describe every investor or every deal out there. But based on my experience, I would say that if a GC comes across a flipper in my area, they'd be more inclined to think that the client wants to spend LESS money than someone who is renovating their own house.
It may be the opposite elsewhere so rather than leave it up to the imagination of the contractor, you should communicate what quality of materials you want: higher end, builder grade, super cheap, etc. Then compare your bids. Getting multiple bids will also be very informative.
I am about to flip our first house and am going to get bids from contractors for the renovation. So my question is, do I tell the contractor that my intention is to flip the house or should I not give any reason at all? I'm concerned that the contractors might think I have extra to spend. Does being a flipper make contractors over bid and try to charge me more than a regular renovation?
I am a GC, I don't really care if they are a flipper or whatever, but it gives me an idea what they want to do. Know what you want first then ask fome bids, the more details you give, the more comparable bids you will get, think of it this way, if you are buying a property, dont you wish you could compare it with another property that has the exact number of sq ft, same number of beds and bath, the same number in lot area?
I always give my best price so there is less haggling.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
11y
You dont have to tell them , a experienced contractor will figure that you are doing a flip in the first 5 minutes of the initial visit . Put in the back of your mind , that spring has hit every contractor I know is booked 2 and 3 months out . That should be the first question you ask , what is your availability to start a job? Do you have plans and or a scope of work ready to hand them? Are permits already applied for ? You may want to mention that you are doing a flip , quite a few contractors dont want investor work . It will save you and the contractor time.
My question to you would be , did you already purchase a house to flip without having contractors already lined up ? If so , and you had a time frame in mind for completion you may want to extend the time you think it will be completed . This time of the year contractors are not generally sitting hoping the phone will ring .
Contractor · Cleveland, OH · Member since 2014 · 317 posts · 181 votes
11y
Yes.. Typically they are fairer on price, because they know they can do so many more deals w you, and they don't try to over bill you because they assume your knowledge is above average. It's ok to tell him.. Make sure a good pay structure for the job is laid out first.. And double check referrals and Angie's list