All Forum Posts by: Preston Gealy

@Eliott Elias ARV has never been off on my 5 flips that I have done so far. My issue is with contractors going way over on budget, quitting, or getting paid and not working. I am currently with a contractor that I pay week to week. We gave him a credit card to buy materials which seems to be working. The only problem is that I am not doing a good job keeping the project on budget and letting him do his thing. I have a full time job and can't be there everyday to check progress. Any ideas?

@Jeremy Taggart thank you for that great advice! I have found that buyer and occupancy inspections can really add unaccounted for costs to the project and agree that buying cookie cutter houses helps. I have received the "don't like the layout" feedback a number of times. My biggest problems have been with the Contractor. One thing that bigger pockets doesn't do a good job explaining is how to ensure that they stay on the job, work the hours they reported, keep costs as low as reasonably possible, and do a good job. I have tried contracts but they don't hold up in court with enough BS from the Contractors side. And collecting a judgment on a drug addict is impossible.

I have used General Contractors for most of mine. Right now I am paying a contractor weekly with no contract other than one to give him 10% of the profits at the end. This seemed to motivate him until costs got out of control and the idea of a profit is dwindling each day. I feel a bad estimate and scope creep are the problems which are my fault. We want to see how the profit looks on the current flip before looking for the next. This is not motivating to the contractor either.

Do you have any suggestions on how to find a contractor that you trust? I could ask other flippers who they use but wouldn't get an answer if they don't want to give them up.

@Taylor Dasch thanks for the advice. My only concern with that technique is that you would have to discern the advice you get as more advanced flippers may tend to use private money to fund flips versus HML.

Hey guys,

I have been flipping houses for 4 years and I'm about 50% on successes. We lost almost $100,000 on the others. Looking for a mentor in the Pittsburgh area to reach out to me and possibly give me advice on what I'm not doing correctly. Any help is appreciated!

@David Garner we ended up closing on the subject house yesterday. It was like you said, an inherited house that they were not motivated to do the rehab work to make it half decent. Thank you all for the advice. The seller ended up paying half of all the occupancy inspection items so it was good!

@Theresa Harris I got another quote for $600. We are trying to get the seller to pay half... finger crossed...

@David Garner wow some areas of Sharon are rough. That is too bad. That is true that good deals are hard to come by. The seller must have remorse over going under under contract for so low of a price.

@Kenneth Garrett. The profit for this one is roughly $45,000 so yes the $1600 is a 3.5% hit. You are correct that good deals are hard to find these days. I have had a number of deals slip through my hands before getting this one under contract. I think I'll keep my mouth shut and proceed to close this bad boy! Thanks!

So I have a great fix and flip deal under contract in a hot area in Pittsburgh. The contract states that we must obey municipal requirements to transfer the property at closing. The municipality required an occupancy inspection and they found some downspouts that need rerouted away from the sewer. The seller is unwilling to do the work or pay to have it changed. We got a quote for $1600 to remedy the issue. Should I force the seller to pay full, half, or jump ship and look for another deal?

@Ron Brady sounds like a dynamic duo! Me and my wife are similar in that she is a multiplier (detail oriented) and I'm a simplifyer (big picture person). I think that provides a checks and balances in a company.