Investor · Rocklin, CA · Member since 2016 · 83 posts · 77 votes
Curious how you guys go about finding a contractor that will walk through a property with you and give an estimate on repairs ? It appears to be a deal if the rehab isn't too crazy, but want to be sure before buying. Ive reached out to some local Sacramento home inspectors and they want nothing to do with that, so how do I find a contractor that will do this ? Craigslist ?
Contractor · Sacramento, CA · Member since 2015 · 131 posts · 55 votes
9y
@Abdul Azeez the two situations are a bit different. A real estate agent has a contract with a seller to get paid for their services, they perform little to no work dedicated to one specific property prior to signing of the contract. In a real estate transaction there is a uniform profit/commission for a real estate agent across the board that is recognized by the industry as a whole, this doesn't exist for contractors. Therefore as a smart owner/investor it wouldn't be smart to select a contractor without receiving multiple bids (because pricing can vary widely). Although many times contractors with advertise "free estimates" as a marketing tactic that doesn't mean every contractor should be expected to provide bids for free. Like @Matthew Paul said an accurate/thorough estimate takes several hours to put together, and many times these bids do not result in getting the job. Even when contractors do advertise free estimates you can be assured these hours will be included in the bid, but if they don't get the job they get nothing for their efforts. Just to add to this, the most accurate bids will come from the best contractors, these contractors most likely have a full plate of work currently and into the future. If you expect to pull them away from a project they are actually getting paid to work on it's probably going to cost you.
In my experience, home inspects will only tell you what is wrong with the home, not how much it will cost to fix those problems. I'm sure they don't want the liability if they tell you a number and he is way off.
I built my contractor's list through referrals. Do you know anyone that has had work done to their home or business recently? I've yet to try it out, but I hear great things from people here on BP giving out referrals as well. Finally, I've heard it in several podcasts that great contractors are at Home Depot at 6 a.m. getting supplies for their job that day. That may be something to try out as well? Best of luck!
Real Estate Agent · Sacramento, CA · Member since 2015 · 338 posts · 135 votes
9y
I've seen my fair share of crappy and cheap flips. Maybe check out a few completed flips and find the ones where the workmanship is good enough for you and then find out who did the work and hire them.
Sacramento, CA · Member since 2014 · 50 posts · 30 votes
9y
@Par
@Par Attaran Hi Par; I have your answer, I know because I just did it. In BP's search area (upper right) type in General Contractor Sacramento, I just found three recommendations. I would recommend mine but I have know idea how busy they are today. Send me a follow-up I would be curious to see if you "clicked with them". By the way, ask about Project Managers for future projects as well. Good Luck !
@Par Attaran Hi Par; I have your answer, I know because I just did it. In BP's search area (upper right) type in General Contractor Sacramento, I just found three recommendations. I would recommend mine but I have know idea how busy they are today. Send me a follow-up I would be curious to see if you "clicked with them". By the way, ask about Project Managers for future projects as well. Good Luck !
Curious the contractor you found, did they charge you for a walk through?or do you promise them the work if you buy the home?
Sacramento, CA · Member since 2014 · 50 posts · 30 votes
9y
@Par Attaran I have a different situation since I am also certified in Property Management, therefore I have different relationships with vendors where I am not charged. Show you have a plan (even if it's rough but always written out,) and let the General Contractor know you are trying to build a business & would like to call on them in the future. You most likely will have to pay for them to come out the first time since it sounds like it's short notice. Once you build those relationships it's easier. So look in the search area as stated prior and see what others are saying about their experience with who they use. Good luck. We can all learn from your experience when you go through it (mostly you) and if you wouldn't mind telling us the outcome that would be awesome. -Best
Property Manager · Sacramento, CA · Member since 2016 · 91 posts · 34 votes
9y
@Tim Kunz is a general contractor in Sacramento area. I'd send him an message, he might not be able to help you with this specifically, but maybe he can recommend someone to you.
Good luck!
And yes, as @P.J. Bremner said, you're more likely looking for a good GC than a home inspector.
@Par Attaran Hi Par; I have your answer, I know because I just did it. In BP's search area (upper right) type in General Contractor Sacramento, I just found three recommendations. I would recommend mine but I have know idea how busy they are today. Send me a follow-up I would be curious to see if you "clicked with them". By the way, ask about Project Managers for future projects as well. Good Luck !
Curious the contractor you found, did they charge you for a walk through?or do you promise them the work if you buy the home?
Why would they do it for free , based on a promise of getting the work . Thats poor business . It takes time to look at the property and time to prepare a rough estimate . Its 4 or more hours work on average . If you want a good contractor to come out make sure you tell them you expect to pay for their time .
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
I don't understand the rationale. Just as a real estate agent gets paid if the house gets sold so does a contractor if you hire them for the job. So it is in their best interest to provide an accurate bid. Why would the homeowner or buyer pay for an estimate?
Contractor · Sacramento, CA · Member since 2015 · 131 posts · 55 votes
9y
@Abdul Azeez the two situations are a bit different. A real estate agent has a contract with a seller to get paid for their services, they perform little to no work dedicated to one specific property prior to signing of the contract. In a real estate transaction there is a uniform profit/commission for a real estate agent across the board that is recognized by the industry as a whole, this doesn't exist for contractors. Therefore as a smart owner/investor it wouldn't be smart to select a contractor without receiving multiple bids (because pricing can vary widely). Although many times contractors with advertise "free estimates" as a marketing tactic that doesn't mean every contractor should be expected to provide bids for free. Like @Matthew Paul said an accurate/thorough estimate takes several hours to put together, and many times these bids do not result in getting the job. Even when contractors do advertise free estimates you can be assured these hours will be included in the bid, but if they don't get the job they get nothing for their efforts. Just to add to this, the most accurate bids will come from the best contractors, these contractors most likely have a full plate of work currently and into the future. If you expect to pull them away from a project they are actually getting paid to work on it's probably going to cost you.
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@ Tim Kunz - although I partially agree my opinion is providing an estimate is just the cost of business for the contractor. As a buyer am I expected to compensate multiple contractors even before buying a home? I don't think that's fair.
Wholesaler · Phoenix, AZ · Member since 2016 · 33 posts · 10 votes
9y
If you can afford it, give them $20-$50 per property they check out for you and also send them referrals, eventually they should not want to charge you. Good luck!
I don't understand the rationale. Just as a real estate agent gets paid if the house gets sold so does a contractor if you hire them for the job. So it is in their best interest to provide an accurate bid. Why would the homeowner or buyer pay for an estimate?
if the customer has a set of professional plans , and a detailed scope of work all on paper that he hands to the contractor and all the contractor has to do is a walk thru of the property , there is not generally a charge for the estimate .
BUT when you get someone that has not purchaced a property and is taking my time , expecting me to point out all the problems , come up with ideas and suggestions , then wants me to draw up a scope of work and then price it . Of course they are going to pay for my time .
If you can afford it, give them $20-$50 per property they check out for you and also send them referrals, eventually they should not want to charge you. Good luck!
You are kidding ...right ? $ 20 to $ 50 dollars . That wouldnt get most contractors attention .
Designer/Contractor from Riverside, CA · Member since 2015 · 56 posts · 26 votes
9y
I disagree, giving free estimates are not the cost of doing business. Maybe I should spend my days giving free estimates to everyone who calls instead of focusing on my paying clients. I'm sure they will appreciate that. In 6 months I'll be out of business. I have noticed that if someone isn't willing to pay for my time they probably aren't serious about hiring me to begin with nor do they respect my time or expertise. They are called tire kickers and they don't know what they want. You want a ballpark figure that's what googles for.
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@ Christina macmanaway - if the contractor gave the right estimate there is a higher probability of getting selected. How is this different from a job interview where there are a pool of applicants and the best gets selected? By your logic going to job interviews should also not be done unless you are assured of a job.
Contractor · Sacramento, CA · Member since 2015 · 131 posts · 55 votes
9y
@Abdul Azeez it wouldn't be unreasonable to expect to pay some money up front to get several bids. Once you establish a relationship with a contractor you like they probably won't continue charging you to give estimates based on the fact that they are most likely going to be given the work. If you are looking for ballpark estimates I would suggest educating yourself on the cost of construction. This education may include paying a contractor a couple hundred bucks to walk through a property with you, take notes and ask questions.
If you expect us to be the architect, the designer, the inspector, and the contractor I think a small fee is pretty fair.
Giving the right estimate has nothing to do with it, contractors have different overhead costs (more professional ones may have an office staff, professional office/warehouse, ect.), different labor costs,
It really all comes down to you get what you pay for. If you are given a free estimate there is probably a reason for it: contractor is out of work and needs the business, he is a new contractor trying to get his foot in the door, etc. On the other hand a reputable contractor who has a good reputation and a steady flow of work doesn't necessarily need your project to stay "alive" and therefore is probably going to charge for their time.
Designer/Contractor from Riverside, CA · Member since 2015 · 56 posts · 26 votes
9y
You can pull out all the analogies you want, you won't convince me to run my business the way you want.
See I've been there. I've worked for "free" for potential clients, my time, my expertise, my insurance, my business expenses, my liability given for free. $0 in my pocket and a day of wasted time. I learned quick it's better to sit at home. People who want free aren't serious! Like I said in another post, FREE is what's it worth $0! Now if you want to build a relationship that's successful you will set the tone right off that you respect their time and their business and pay them. Like someone else said you need to lay the foundation first then maybe you'll get a person who will give you numbers knowing you'll hire them and trust them and not shop their numbers. You can either take what I'm saying and learn from it or keep pushing back but this is how my industry works not just me.
Investor · Roseville, CA · Member since 2009 · 1k+ posts · 583 votes
9y
@Par AttaranIf you know what kind of work that you want to do in the house, you can post simply ads on craigslist asking for estimates for each part of the project. Post a ad for tile if you putting tile on the floors and bathtub surround. Post an ad for new windows if your putting in new windows. Post ads for door , baseboard installers. You need to determine what work you want at the house then look for those kinds of tradesman. I like the idea of looking for a contractor here also.
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
9y
@Abdul Azeez the problem with your rationale is you want the contractor to come do this, for free, on a house you don't even own. He isn't coming to a house you have and providing a bid, he is going to a house you haven't even made an offer on, to give you a ballpark (has to be fairly accurate, so not just a random number) what it will cost to fix. A busy investor is looking at 2-4 houses a week and writing lots of offers. Should this free contractor come to all of them?
What if he tells you it's $100k to renovate and that makes the deal dead? Now you walk to the next house and he wasted his time. If you find the guy willing to do this, never let him go, however don't be surprised if no contractor will come to your possible houses and give you your renovation costs for free...
My opinion is do your homework and learn what things cost, so you can place your bids. Then when you have the keys, call the contractors in for free bids.
Investor · White Haven PA · Member since 2014 · 362 posts · 221 votes
9y
I would offer to pay a contractor $100 to walk through and give you a rough estimate on what you are looking at price-wise.. I'm a contractor and a flipper and I can walk through a house and (Barring anything behind the walls) know what it's going to cost (within about 5-10%) to renovate it in about 30 minutes.