All Forum Posts by: Steve Yoo

whenever an kitchen or bathroom is remolding it always involves plumbing. Drains, vents, water must all be checked prior to completing the renovation. My plumbers always check to make sure gas is not leaking. TV shows only show you what the audience wants to see. Drama and suspense 

seems like a lot but calculate by SF as a whole and it won't seem like as much. My drywall consist of taping, 3 coats, polish, primer, 2 coats of paint. I use green board for all bathrooms, kitchens and basement. 

As an investor who wants to rehab I do believe they should know some basics of construction. Whether it be hands on or managing the person working on the project. 

as a contractor I enjoy the competition, especially when multiple contractors are at the job site all at once. We are all in the business to make money. I introduce myself and exchange business cards. I'd expect the same if I meet investors. 

Regards to underbidding: I never ask what other contractors bid for the job. I try to sell myself and my company. I really don't care if another contractor low bid the job to get it. I'm sure sometimes my price is high, low or in the middle. My price is usually negotiable but not because another contractor came in low. I have to think whether or not a specific project is worth me lowering my margin. 

And BTW you should never assume quality of work will be the same amongst contractors. When it's all finished and done and your satisfied then it is the quality you paid for. 

Hope this helps!

Art I think just like you. Very unprofessional to bad mouth each other. 

I know many contractors in the industry and I don't know 1 company that prices residential with SF. Commercial is a little different but residential?

There are too many variables with finish materials and home owners wants and needs. Example: 800sf condo full gut renovation for $200/sf. This is 160k. I have done many condos in NYC and at most so far I have charged my client 85k. This is with custom cabinets, walkin closet custom shelving and the whole other things involved with gut renovation. 

Pricing a renovation is actually more numbers involved then just SF.  Not difficult though. This is how I break it down:

Materials

Labor (days, workers)

Permit fee, filing fee, architect fee

My margin (city is typically more because more traffic, tickets and more time consuming in general) each state/city is different because operating cost, insurance, licensing  is different. 

Example:

Materials: $5,000

Labor (4 crew members 1 person@$800/wk, approx length of work 3 weeks): $9,600

Architect, filing: $3,500

My operating cost + profit: $4,600

Total cost: $22,700

Hope this makes sense. 

Although I am new BP and also new to investing I am a contractor. 

I don't price out renovations with SF. The numbers are always off. 

Scenario: project I did for an investor

2 full bath: $4,000/bath (includes fixtures)

10x10 kitchen L shape: $12,000 (appliance separate)

Drywall: $80/sheet (includes finish paint)

Hardwood floors: $2.00/sf (floors separate)

8 hollow core doors: $120/door

2 exterior doors: $250/door

New hot water tank: $1,500 (includes 30LF of base board heater)

This Was a 3 floor property that was damaged by hurricane Sandy. A full guy renovation. 

Total renovation including all materials (except appliance) was $57,000. Approx 2800sf. 

My pricing for investors are different than a home owner. The quality is the same but I understand there needs to be a larger margin for investors, investors give me consistent work and also there is no emotion attached so deciding on tiles, cabinets, fixtures ext... Are not too crucial. We choose finished products knowing what most home owners want. 

I hope this helps. I live in Atlanta now but this was a project I did in Queens, NY

FYI: I believe he bought the property for 90k cash and flipped it for 230k in 4 months. My time on the job was 1 month.

I've just started to look into the area I live in. It is highly sought after for its great schools and low crime. Houses are in the low 200's. I see these 2 homes that are almost collapsing. There is a for sale sign in front. I have not given them a call yet. Are these houses too bad of a condition to wholesale? What do I offer? Home will most likely need to be demolished. Land worth it? Thanks

Hey Krystal. Im planning to attend a few of the Atlanta RE groups. I'll keep you posted after I attend. If attend one before me or when you decide let me know. Maybe I can attend the same one. Lots of luck!

Thanks Bill. I appreciate your thoughts. Definitely have a lot of reading and studying to do.

hello everyone. I am new to investing and I am trying to learn everything there is with wholesaling. When I do find the right property I want to be prepared.

Can anyone suggest where I can obtain a sample of a contract most wholesaler use? Download file or something. Specifically in Georgia unless it really doesn't matter.

Thanks!