All Forum Posts by: Steve Yoo

Hi everyone! Can someone help me? Another investor has a subject to on a property. Seller refinanced in may. Investor is paying seller $600/mth and seller is still paying $250 on top. Mortgage payment is around $850. House needs about 5k in renovation. Current rentals in the area are $1,200/mth. ARV is around 150k. Not sure what I can offer this investor. She asked for assignment fee 5k. Do I fix it up and rent it? Offer a lease option? Try to do a quick flip? Any advise would be helpful. Thanks BP

Thanks for all the feedback

Hi everybody, I am a contractor and I am very curious what most of you feel about contractors. What do you like about us and what drives you crazy. If in a perfect world what would that contractor be? 

Reason I am asking this is because I am the other side of renovation and I want to know how I can be a better contractor to work with and if I am also do things people hate. 

If would be very helpful if you BPs can list them and even get into details 

Thanks, Steve

Johnathan, let me know when you have to chat. I can schedul a time and date to meet you at your property. I have a few projects currently working on. I'll be starting a few more this week. Talk soon

That is a huge project. Instead of a % for deposit have your contractor break down scope of work. Ask him what he/she needs to purchase to start the project. Typically it's a dumpster, garbage bag and labor. For the beginning give enough to cover the initial materials/dumpster and tell contractor you will release more funds after majority of demo is complete. You want to know atleast 3 week spread. It's annoying and difficult for the contractor to keep requesting funds so at least you will know in advance approve amount they need. Typically 15% is held until an inspection is passed. Is this all making sense. Be careful with your money. Me being a contractor of course would like to get as much funds upfront instead of digging out of our pockets but the reality of working with investors especially that large will have to be something that you should be micromanaging unless you've worked with that contractor before. I know too many people who hired the wrong contractor either walked off the job with more than paid than finished. Be careful and good luck!

Joshua, PM me. I have several flips currently working on. Where is your target area? Depending on where your properties are located I may be able to take on some more. 90% of my projects are within the Atlanta city vicinity. Small cosmetic projects to full gut renovation is all good for me. If you see a potential investment and need me to give you an estimate prior to making an offer let me know as well. Good luck on your new venture!

As a contractor this is how I work the payment schedule with my customers; Flipper: I provide a schedule with payment for each scope. Once a scope is complete or near complete a payment is requested (sometimes customer will take a look, loan inspector may come or sometimes pictures will do). If the job is large and large sum of funds is needed I will ask for a drawer (cabinets/countertop). Retail/buy hold: usually 20% start date. Depending on how long the project is projected a weekly schedule is provided. Within the schedule a % of payment is determined. 5% is a retainage that is paid once punch list is complete. The difficult part for many contractor is the out of pocket cost we have to use upfront. Smaller jobs requiring less costly materials is easier but when material cost are high it's gets very difficult especially if the contractor does no have a lot of money or line of credit. It is very expensive to pay labor and materials upfront to be paid the following week. Most contractors that work with flippers only see their profit once a project is complete. Every payment we receive during the project must be put back into the project. I hope this all is making sense. Feel your contractor out. If something seems weird from the beginning it usually is. Steve

Amit, I have done numerous frame work. I have pics of some breams installed and also removed. PM me. Steve

Hey Alex, I know it's been a while since this post. Hope you were able to find a great contractor. If you have not or having issues you can PM me. I work with investors in the Atlanta area. Steve

I am a contractor and I have worked with many investors and customers in general. 90% of the time I go look at the property with my investor. Based on my rough estimate my client bids accordingly. Sometimes because of the Reno cost they just walk away from the deal. Alpharetta is a great market but really depends on where. Within Alpharetta house prices are very different. I'm sure you know better than I do since you are a real estate agent. I don't believe there is a specific amount of bids. I do believe you should meet few contractors and hear what they have to say. We all think differently. The more specific you are with what you want done the more accurate the estimate. There are a lot of variables, especially if it's a huge reno. PM me if want me to take a look. Earliest would be Saturday though.