All Forum Posts by: Terri Lewis

I am also curious if they are too far into the pre-foreclosure and the bank has the property listed. I called the property owner (no answer) and haven't found the address on that one. Then I saw it listed and I didn't think they could list until conveyed back to the bank. I rechecked the county records and it is still in the homeowners name, not the bank. Not running through the normal foreclosure auction either. Even if it's a CFK I didn't think they could list until back in their name. 

Same thing here. Trying to keep in a budget and not wanting to send to bad addresses. 

The new home buyers are always going to be there. There will always be a flow of them, with the need to use a Realtor. The only ones that feel confident to purchase with out an agent are people like us, that understand what we are doing and would rather not give up the percent of commissions to a third party, and can buy direct form a property owner. Or sell direct to another investor. There has been too many seller that has not upheld there fiduciary duties to end buyers and have developed bad word of mouth to the RE illiterate OO. Also putting more regulations on our transactions, "Dodd Frank".

As for Allstate, my word are "you are in no hands". I have a passionate dislike for the company. I'm in the second time around with one of their insured causing the accident and know what jerks they are to deal with. They must have a large percent set aside for attorney's to keep from paying claims, instead of paying claims and saving legal fees. The FTC should check them out. If we handled RE in the same manor, non of us would be allowed to do any deals with out a Realtor.

A few of those a month would sure help cash flow. Any how @David Lee  you did a great thing, and helped everyone out. 

I like that payment brake down @Matthew Paul makes good sense. We have always went 50/50 or the thirds depended on size and account.  Have had to wait quite a few times on last draw. 

@Mark Gallagher $22k is quite high. I have subs that will do a 2 story 1800 sq ft. all new for $6k and they supply the materials. Highway robbery that would have been for you. It's still back to knowing your costs, and having the crews or subs lined up. Depends on how many rehabs you have to keep them busy and happy. I think we get by because of a lot of work. They don't mind a few days off here and there, but they work cheap for a variety of reasons. Both volume and the no administrative responsibilities. Also the time and expense we have already put in to find the good ones. I look back and am very happy we are through the weeding out. I'm sure as we grow though we will add more and have to do some more weeding, just that from the experience we know to keep checking in on them. Good point Mark, stopping in and seeing what is going on, helps keep them on their toes and lets them know you are staying on top of the project.

@Account Closed states when you know your costs both material and labor. Purchase the materials, then you can contract a sub for the right price and not have the mark up on materials. Saves quite a bit of money for the overall project. 

Still a lot depends on the size of the job and if you have the time to general it. 

I agree with @James Wise you get what you pay for. I was also thinking yesterday, the statement of the profit from hiring a GC that oversees the work vs. being the GC. When we do bids we basically charge as though we personally are doing the work. Then we have several crews that don't want the admin side and just love to go and make a difference at the property. They are very happy with what they get paid and can just go home at the end of the job. 

So @Account Closed  It all depends on what you are wanting out of a contractor. If you have the time and patients to weed through crews until you find the good ones and know what they are capable of, then you will save some money but will be spending time getting to the point that you can send who, to do what you need, and know that it will be done right. We are in an area of a lot of people that have a lot of knowledge of building. We are also in an area that a lot them say they know but either don't or they don't have the ethics to do the right quality of work. I could almost right a book about the bad workers we've gone through to get the good ones. The extra money we have spent on bad work I could at least bought a few properties with. 

We spend money to go out look at the property, take measurements, find the right materials, and give the bids. Then we have to take time to go and check on the work during and after they complete it. Not to mention the insurance, and the money set aside for gas or materials. A place to keep everything. Need to keep things continuously rolling with new bids and GC the work. Sometimes fronting funds for the guys to get back and forth. All costs have to come from somewhere. 

We also feel the need to do the first jobs for new clients, to make sure they are what they say, and will follow through with payments. We have run into some in that way too. They say they are financially sound and can handle paying. Then when the final payment time comes we have to wait. That's even after checking on them prior to giving bids.

One bad instance on a sub:

We were at a full rehab helping finish because the guy and his crew were to close to the dead line and there was too much left to do. We were not going to let it go past due date. The day I was there the whole day, he had left for lunch for about 4 hours with the girlfriend "who was on his team" then that night left with the wife for 3 hours for dinner. When they returned, I knew he was drunk. He stated he had worked 18 hours that day. I let him have it and told him he was done.  I explained that during those 18 hours he was gone 7. Figured out though why he was running behind. I also saw tools that were from his previous job "marked with their name". I watched him at that job off and on, and really thought he would make a good worker for us. 2 years of of watching didn't help me make a good choice.  Until he was working for us, I had no idea he had a drinking or relationship problem. The wife was upset a few days before this, thinking he was running around on her. At that point I just thought she was upset and not understanding the hours he was working. That's why he started having her come and help after she got off her day job and probably why his other guy walked a few days prior to all this. That's just speculation on that though. We had 2 other crews at this site doing other work that were grumbling about this guy, but had to go and see for ourselves anyhow, and because some subs say things to get others in trouble. Another issue that just happens with some of these guys. Bad mouth one to try to get them out and get more of the work.

lol these guys can create so much drama if you let them, that interfere with what your main objective is, and what theirs should be. Getting the job done. We have learned to check things out but laugh at some of their statements. Can't let all that get to us. 

Well said @Will Barnard  and @J Scott 

Well @Account Closed  you haven't called us yet! lol I have to admit an email is a lot easier when were busy. I generally where my blue tooth so I can answer easily. I have to aggree with many of the coments. It's hard to go give bids when we are not feeling like it is going to go forward. We do how ever many times bid jobs that the property owner, has several people bid. When that is done it feels like they are just going to go with the low ball hungry one and not be concerned with the timing and quality.  We like to make the use of our crews, and that we become your number one call. Might be a little high on some bids and a little low on other ones. All works out in the end for everyone.

We bid, I think 3 or 4 jobs in South Bend this week. All low end housing so not much work to them or time. 

This has been a really interesting thread to read. Love hearing how different peoples days go. As was said, being self employed has its moments, days weeks or years. Both ways, really good or really bad. We have been doing property preservation work and rehabbing for others for around 4 years now. The preservation work can be very demanding at times especially when all the crews are too busy, or the job needs special attention. Hoping to close on our own fix and flip at the end of the month, with a PML/JV we met here on BP! Cant wait.

Today was up at 7:00 to finish hashing back and forth with partner ( son Wayne) over a large rehab we are bidding. $50k. Beautiful house about 180k ARV that was supposedly gutted due to mold. We've done enough mold to know there couldn't have been any on the main floor. The studs in the basement don't even have any signs of mold. Well I guess good for us if we get the job.

All while listening to the morning news. Not really an easy day for that.

8:00 to 9:00 write contractors checks and submit PP work that was emailed the night before. Answer any emails and questions any of them or other customers might have. 

Get ready to go look at another rehab to bid.

11:30 Arrive at rehab, it's little ways away, but our crews are happy to do some traveling. Measure all the rooms and make notes of any special concerns. Quite a few on this one. It has been under construction for over a year already from a prior contractor.  They didn't do too bad of work but didn't start from the roof down. Leaks, mold and damaged flooring.  Walls are mostly studs still. This will be another large one.

4:30 Back in town and had a nice dinner while talking over our strategies on what we are looking at accomplishing over the next week. Along with what were doing over the temporary loss of the truck I drive. Someone ran a red light and tried to cross the intersection before me. Silly kids. A lot of times I am the material runner. Well for now Wayne will have to do all that.

5:30 back home and taking the evening off to watch and play with my grandson. I love the break.

11:00 on BP to do some reading but I should do a little work. 

Thinking of starting someone in the office to help with the uploading of PP work or something. Not quite sure where to use them yet. 

I spend many long days right now but so does my partner and sometimes some of the crews.

A few weeks ago we had an eviction for one of our clients. There were 7 people living in the house and someone was a hoarder. Between me and my partner one of us had to stay with the crews at the house. Started at 9:30 AM and the last ones left at 2:30 AM. I stayed with the late ones to do final pictures of the finished work.  At least that one will be a light rehab whether they re rent it or sell it.