All Forum Posts by: Jean Laurin

You're probably better off just asking for multiple bids.  Get them itemized and ask to break-out labor vs materials.  You can grill the outliers on why they provided a different quote.  I'm a newbie, but It doesn't make sense to me that you'd pay the contractors that don't make the cut. Ideally, you'll find the best contractor and stick with them.  The long-term winner deserves your $... the others don't.

If I get a quote for a rehab from a contractor, they work the job, and then the job goes way over budget, what happens?  Is the contractor responsible for some or all of the cost, or does it all fall on the investor? 

This is probably a super-newbie question, but I haven't heard anyone talking about this yet.  I'm still learning, so maybe my confusion is jut because I don't know what causes cost over-runs...

On the PB Podcast, I've heard about getting an itemized bit or statement of work, breaking-down labor vs materials, and paying after stages of work are completed, but I haven't heard who's responsible for cost over-runs.  Are over-runs something that are typically defined and addressed in a contract before the work starts?  And... is it different if the over-run was on a part of the rehab that was defined in the statement of work, versus if the contractor found a major unrelated problem like dry-rot or something?

Thanks in advance for clearing this up for me!

Jean Laurin

I'm just starting out, and I've heard I should get referrals.  I'm surprised people who have a great contractor are willing to connect other people to such a key asset.  

If someone refers a contractor to me, and the contractor is renovating my property for a month or two, doesn't that prevent the contractor from being able to work on the referrer's property if they want to start a new reno?  It seems like they would be stuck finding another contractor if they wanted to get started right way. ...or are most contractors big enough to work several projects at one time?

I guess I'm asking how most contractors handle multiple jobs.  Maybe it depends on the scope of work?

Thanks,

Jean Laurin

Hi Jarod, @Jarod Flanagan

Similar story for me. I was looking into turnkey properties, then found BiggerPockets podcast a couple weeks ago. Now I'm reading BRRRR Book and Estimating Rehab Costs. Just made a BP account today.

From the turnkey podcasts, I've been looking into Memphis and Birmingham markets because of the >1% R/V.  ...so, same place as you.  How's it going so far?