I need advice from all your flippers out there

I need advice from all your flippers out there

Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes

Sorry for a lengthy post, but you need the context to be able give me some advice. I have been a mortgage lender on this forum for over a decade and done quite well over the years here. 

I pivoted last summer and decided to buy a Skid Steer with a forestry mulching head to get in the business of clearing overgrown brush and trees from peoples property to turn them into park like finish. I have had success for the jobs that I have done with very happy clients, however most of the mom and pop jobs I get invited to bid are shocked by the cost. I feel like they see my FB Market place add, want the work done but don't have a clue what it costs to have the job done and are not prepared to cover those costs that their eyes told them they wanted done. 

To combat this problem, I have offered my clients a 5 minute approval for a HELOC that can be approved for $25,000 - 1 million on any primary, secondary, and rental of 1-4 units. Despite that, and even having a couple of customers get approved for $250K for one and another for $62K. I have still ran into a lot of tire kickers that end up wasting my time and cost me money just to go to the jobs to talk with them, walk the property and give them a quote. The jobs I have done with great success have all been with the real estate investment crowd versus the mom and pops.

What advice would you give a guy like me? Refine my target audience???? other advice, help a brutha out :)

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  • Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 604 votes
    5mo

    Kevin, you already see the pattern and that is your best clients are investors, not retail homeowners. I would absolutely refine your target audience and lean into the real estate investor space where people understand ROI and budgets. Pre-qualify harder before site visits, ask for budget range upfront and charge a consultation/site visit fee. That alone will eliminate tire kickers.

  • Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    5mo

    That's interesting. I have thought about charging some kind of site visit fee, but wasn't sure if that would look good to the potential clients or not. I've seen this brought up in the mulching feeds on Facebook before and they said they credit that fee to the overall job costs when the job is completed. 

    Yes, I'm seeing the pattern. I'm working to get city, muni, county, state, railroad and powerline contracts at which point I wont have much time for at least the mom and pops should that happen. I also plan to get a a remote control carrier to mulch steep hill sides. Cant wait for that day to come. 

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5mo

    I don't think you are necessarily doing anything wrong if you are getting business. If you want to target certain groups then I'd utilize social media(having a business page) and asking for referrals. Part of the process is bidding on jobs and you won't get all. Not sure if you can put any sort of pricing on the front end to weed out tire kickers. Once you weed out tire kickers then I'd do a sight visit to close the job. 

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