Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by Sam Ferris:
Get the same people all the time; let them sleep in the rehab; make them employess and pay the taxes.
Was that a joke?
If not, are you suggesting that you'll buy them their tools, pay for their workmans comp insurance, pay for their liability insurance, deal with the details of hiring and firing, etc...
Sounds like much more overhead than what you'll gain...
Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
15y
If you have time you should be the general on the job and hire everything out. After a few jobs you will have the crew running well and understand the process.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Agreed with Jeffrey...
We used a GC on our first couple projects, then I hired a project manager and we started hiring subs directly.
Go to Home Depot or Lowes at 7am on a typical weekend and start collecting cards. Any contractors at HD or Lowes at that time are both diligent (they don't sleep in) and have work (they are in demand).
You'll still want to do your due diligence, obviously, but it's a good start.
Then, once you find one or two great contractors, ask them who they recommend for other jobs. Good rule of thumb is that good contractors will only recommend other good contractors -- otherwise they risk their reputation, which good contractors won't do.
Investor · Key West, FL · Member since 2011 · 127 posts · 29 votes
15y
I've seen jobs pieced out and also completed by one contractor. There are benefits to both of these things. Piecing it out to multiple workers may help you save on rehab costs but could be hard to hold one person responsible if need be.
Using a GC is less of a headache being the 1 person you will communicate with as well as the 1 person to be held liable for any incomplete or insufficient work.
When using a GC make sure to get multiple (at least 3) bids...and make sure they know they are bidding against each other this will keep them on their toes. I like to have 1 contractor arrive as the other is wrapping up his bid.
I've found some remarkable workers from both Home Depot and Craigslist. Referrals are a great way to go too. If you can view any work they have done, do it!!! Also ask for references. Don't by shy, the rehab will make or break your deal.
And remember, keep your contractors very close. They can be invaluable.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
I agree with both Jeffrey and Jason.
I will add that referrals from other investors are one of the best resources to find your team members. I too hire subs for specific items (carpet layers, tile installers, HVAC, electricians, plumbers, framers, painters, etc.
Flipper/Rehabber · Orlando, FL · Member since 2008 · 263 posts · 147 votes
15y
I hate to go against the trend - but we always use a GC. They have the license, experience, and a reputation to maintain. Plus they do add value, if they have the right team and have to work to a budget and draw schedule.
That way I can concentrate on business matters and not construction snafoo's.
TTFN,
Greg
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by Sam Ferris:
Get the same people all the time; let them sleep in the rehab; make them employess and pay the taxes.
Was that a joke?
If not, are you suggesting that you'll buy them their tools, pay for their workmans comp insurance, pay for their liability insurance, deal with the details of hiring and firing, etc...
Sounds like much more overhead than what you'll gain...
Real Estate Investor · Pickerington, OH · Member since 2009 · 38 posts · 11 votes
15y
Like others have said you may want a GC until you learn the process.
My wife and I GC the projects.
We sub Carpet, Electrical, Plumbing, and HVAC. We do all the drywall repair, painting (with sprayer), lay wood/tile floors, and install trim/doors. Our sons do most of the demo. They're good at damage.
Both our fathers were home builders so we grew up with the scheduling and systems to make it flow.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
15y
Originally posted by Sam Ferris
Get the same people all the time; let them sleep in the rehab; make them employess and pay the taxes.
Was that a joke?
If not, are you suggesting that you'll buy them their tools, pay for their workmans comp insurance, pay for their liability insurance, deal with the details of hiring and firing, etc...
Sounds like much more overhead than what you'll gain...
lol...there's a slumlord in town that tried his hand at flipping houses...one of his crackhead "handyman" sleeps at the place and keeps an eye on it...he invited me in, and man what a mess!!
Developer · Houston, TX · Member since 2008 · 488 posts · 121 votes
15y
I had to sign a contract with my HML stating that my property was for commercial purposes only, and no one would be living, or sleeping there.
I found my GC by talking with other local investors. I found out which people to avoid, which people did the best work, and who does the most expensive work.
The old saying I always hear is "You can have 2 of the 3: Good, Cheap, and Fast".
I feel like right now I'm paying for Good and Fast work.. You might want to consider that if you sub out yourself.
Lender · San Francisco, CA · Member since 2011 · 20 posts · 6 votes
15y
The estimating guide was this:
1) Demo - 2 laborers at $30/hr, 1 30 yard dumpster at $350
2) Roofing: is measured in squares. 1 square is equal to 10'x10'. Material will be $130/ square for shingle. Labor will be $50/ square. Plywood is $50/ square.
3) Windows are $220 per window.
4) Gutters are $2.50 per linear ft
5) exterior doors are $250 installed each
6) Driveway is $4 sq/ft for 6 " thick
7) Garage Door is 1 car $500, 2 car $1000.
8) Exterior paint is $1/ sq ft of the house
9) A/C $1,500 for a 4 ton installed
10) Landscaping: Labor is $15/hr, Mulch at $32/yard
Interior
11) Kitchen Cabinets without counter tops installed, 1000 - 1500 sq ft is $1,500, 1500 - 2000 sqft home is $2,000, etc
12) Granite at $30/sq ft installed. Back splash $10/ liner ft installed. Sink maybe included
13) Appliances are $2,500 for stainless stove, dish washer, microwave, and fridge.
14) Flooring: Hardwood at $5.50/ sq ft or $2/sq ft for refinishing. Carpet at $1.50/ sq ft with pad. Tile is at $6.5/sq ft.
15) Bathroom are $2000 for material and install. Demo was already done.
16) Drywall at $1/sq ft for labor and material
17) Patchwork of Drywall at $30/hr
18) interior paint is $1/ sq ft of the whole house for two tone paint
19) Door and Trim $75 installed each, $120 for closet bi folds. Base trim at $1.30 / sq ft
20) Plumbing: $550 for 40 gal water heater installed, Pex pipe at $1/sq ft of the house if the whole house needs it.
21) Mechanical: New Furnace $1,200 installed. Duct Work $500
22) If the whole house needs electrical then $1.75 sq ft of the whole house.
Wow that was a lot. Not sure if it is accurate, and most likely will need to be adjusted.
Real Estate Investor · Portage, MI · Member since 2010 · 470 posts · 315 votes
15y
Originally posted by Al Vo:
The estimating guide was this:
1) Demo - 2 laborers at $30/hr, 1 30 yard dumpster at $350..........etc.
Wow that was a lot. Not sure if it is accurate, and most likely will need to be adjusted.
What do you think?
Jerry's numbers work for him in SE Michigan. You will need to adjust them for CA. The estimate sheet he uses is great for someone getting started and helps me not forget something if I get a phone call in the middle of an estimate. I am easily distracted!
Bill