All Forum Posts by: Davon Lowery

You are trying to look after your business, and profits. He is trying to do the same. Therein the rub. Using a sub steady still requires some bids to keep them in line. Even then their business may outgrow working with you.

Hey Davon,
A really good strategy I have seen people use is talk to them level headed and say "hey, I want to flip x amount of houses per year and most likely I'm going to need a plumber on every one of them. If you cut me a deal on the price I'll keep you busy" I doubt he will come down to 6k, just because his number is so far off from that to begin with, but it may be a start.

Have multiple bids is about the only way to save on items like electrical and plumbing, and a good way to cut costs nowadays are with the finishes. For example you can get a porclein floor tile that looks just like marble. Engingered hardword that looks like real hardwood, etc... Shop the big box stores and stay out of those specialty stores.

Davon Lowery Hi Davon,
This is going to be an ongoing struggle with contractors and I can tell you as a guy who used to install flooring in college is that your contractors that take a lower price are normally only willing to do so while they build their book of business but as they get better they only have two ways to make more money by charging people more or working more hours. This is going to be an ongoing fight for you so I would recommend getting a better deal on the house because eventually as you become more seasoned time is your biggest asset, not money. 6000 for a full replumb is low in my opinion. I would say if the home is down to the studs and completely open 7k is a best case scenario for a seasoned plumber. I had a guy do a job for that cheap before and he failed two inspections which cost me two weeks and he kept complaining he needed more money. If I paid 15 percent more I could have saved alot of time and money. Lastly, I would recommend finding a way to build value for your contractor if you want him to help you. For example, there is a very small building materials store that sold SnapTile for 1.50-2.50 a square foot which normally runs 5-7 dollars a square foot in my area my flooring guy was unaware of. I asked him how much he charged for tile labor and he said 6 dollars a square foot for flooring tile. So I explained to him how snap tile works and even told him how to sell it to his customer. He started installing the SnapTile which was less labor for him while also charging his other clients normal Home Depot pricing on the SnapTile he was getting for 2.50 -5.50 cheaper. I just helped this guy almost double his profit while
decreasing his labor time. Now I got a guy that does 65 cents a square foot for flooring because he knows I do whatever I can to help him out. Doing jobs at rock bottom cost for investors is not what most contractors want to do so I'd recommend paying their price oh you're going to be constantly shopping contractors.

Re piping the entire house to copper for 6k?

New construction costs 25k here for the entire house.

Get multiple quotes and see if your contractor can match the price. Or get don't over pay for the home. Anyone can cut costs and cut corners on rehabbing homes. But you can't cut corners or costs on electrical or plumbing. These are licensed Individuals who value their time.

Where you can cut your costs down is in other areas.

If the plumber is just setting a new toilet and tub and trimming throughout 6k should include all materials

Get quotes from a couple plumbers to do the job.  If they are in line with your contractor,  then that is the cost.  if they are much lower,  then use that to negotiate, or just have the plumber do the piping.

I pulled in an electrician to do work on a property I just rehabbed.  He was a couple grand cheaper than what my contractor was going to charge.  When my contractor couldn't meat his price, I had the electrician rewire my house , and the contractor did everything else. It ws a little trickier, because I had to work the electrician in around all the other work, but it kept my budget in check

Davon,

Pay the contractor his fee and just take less on your flip.