All Forum Posts by: Jovan Gonzalez
Jovan Gonzalez has started 1 posts and replied 7 times.
Post: Contractor requesting 50% Upfront
- Contractor
- phoenix arizona
- Posts 7
- Votes 5
Originally posted by @Matthew Paul:
Originally posted by @Yelena Johnson:
Doooonnnn'ttt doooo ittttt..... I've been burned this way in the past (more than once, guess I didn't learn my lesson the first time!). There are plenty of ways to manage their outlay of cash in smaller increments, and perhaps you can ask for receipts when they buy materials and pay them daily or weekly as work gets completed. Ideally, tie each payment to a milestone or deliverable so you can ensure the work gets done and you aren't left out of pocket with a project that's going nowhere fast. Good luck!
Ask for receipts for materials ? Pay daily ? You must be dealing with chuck in a truck .
Contractors provide you a price for a finished product .Included in that finished price are materials , labor , overhead and profit . What we pay for materials is none of the customers business . We get prefered pricing at the supply houses , depending on how much we spend , we can even get free vacations from some depending on our volume . Our relationship with suppliers does not get passed to the customer , it is part of our profit .
AGAIN, Very well put. many customers get offended claiming we "mark up prices" and they know we get it much cheaper but our pro discounts or agreements with vendors are ours that we worked hard for many years to get. We charge you full price for materials , if you don't like it buy it yourself . its that simple. sorry if that sounds harsh.
Post: Contractor requesting 50% Upfront
- Contractor
- phoenix arizona
- Posts 7
- Votes 5
Originally posted by @Ronald Starusnak:
@Alex Varner we do well over $1million a year in revenue for my construction company and I wont even move without 50% down. Just because we can fund the materials and cover the overhead doesn’t mean we should. Grab a good contractor, get a lot of references, and do your due diligence . In NY we have to put the deposit into an escrow account until the job is completed. There are shady contractors and shady homeowner and neither wants to be out money.
If you are worried you can ask your contractor to allow you to purchase materials so at least you know you are getting them but don’t try to negotiate the contractors price when they share that kind of pricing information with you. The price is the price it takes a lot of trust to share their margins with you. It is a felony to not deliver at least the materials to a job and the dofferwnce is civil.
Very well put ! It's so sad how contractors are automatically labeled as scammers for protecting themselves.
Post: Contractor requesting 50% Upfront
- Contractor
- phoenix arizona
- Posts 7
- Votes 5
Originally posted by @Meryl McElwain:
If what you want is the cheapest quote, expect to pay a hefty deposit. Credit lines cost money. They can't buy materials without your money.
EXACTLY! Some people don't understand that contractors also risk a lot when not given a deposit. I've had an investor who seemed so reliable and ended up abandoning his own jobs and now he's no where to be found and I'm out over 100k, and he paid my 50% deposits on all projects. I did the work I was supposed to do, he got twice the work done that he paid for, sold his houses, made his profits, and vanished. I understand there's scammers out there but that's why we have references and are licensed with ROC's. We not only risk money and time but also our license and credibility .
Also, I've come to find that a lot of "investors" who aren't willing to pay a deposit, usually don't have money and are looking for lowballers. So, to my investor friends here, remember 1. you're not the only one taking a risk on these projects & 2. YOU GET WHAT YOU PAY FOR. The low ballers are usually the scammers trying to make a quick buck before their disappearing act.
Post: Contractor bidding cost
- Contractor
- phoenix arizona
- Posts 7
- Votes 5
Here in phx we give out two separate bids or ask before hand about the materials. We usually do one bid with only labor, that way if the owner decides on different materials the price won't fluctuate. I don't believe we should rip off a client just for a little extra.
Post: Hiring Contractors how to find a good contractor
- Contractor
- phoenix arizona
- Posts 7
- Votes 5
That Home Depot idea is actually really smart. Me and my guys are usually there around 5:30 and out by 6ish though and driving around might not be the best idea because you might get somewhere and the boss isn't there ,maybe you will even get in contact with the wrong person and end up not getting the work you saw, or hoped for. Unfortunately, there's a lot of labors who go to work one day and think they can do the work themselves and be their own boss.
Post: Want to Start Flipping IN AZ, Arizona, PHX, East Valley?
- Contractor
- phoenix arizona
- Posts 7
- Votes 5
@Kyle Karges @David Biederbeck I'm a contractor looking to meet likeminded people . I'd love to get in touch with both of you and see what you guys have going on.
Post: Any Investors/Flippers in Phx that are involved in Rehab process
- Contractor
- phoenix arizona
- Posts 7
- Votes 5
Hello Everyone I'm a contractor here in Phoenix & I'm new on BP. I want to get to know new people , I mean I'd love to make new business connections as well, but for now I want to hear about everyones experiences. Maybe you can all help me improve on certain things.
Is there any investors/ flippers that get involved or do their own rehabs on their properties? has it turned out more or less convenient to use contractors ? success stories ? failed stories? lessons learned? Any tips for a general contractor ?