All Forum Posts by: Stacee Evans

I'm in the middle of purchasing my first flip and I'm getting a little nervous and would like to make sure I'm doing this right.  I live in California and the house is in Texas.  This is a major renovation (close to 100k) and the contractor I'm leaning towards has excellent referrals. They all said he stayed in budget, did good work and finished in the time frame he estimated.  He sent me the contract and I have some concerns and would like some advice.  He's asking for 30% down, the next payments when 30% of the job, the next 30% of the job and then the last 10% at completion.  Is it reasonable to negotiate a lower down payment with payments more often and instead of a percentage of the job complete, list what work is done?  I would also like to put in a penalty if the work is late and a bonus if it is finished early. Is there a standard amount for this? He put in the contract that the project may go over due to circumstances beyond his control like permit delays, weather or illness. That sounds like he is really covering himself in case it goes over.  I've read how investors have lost money by the renovation taking longer than estimated.  He is investor friendly, seems to do great work, but there is no where for me to check him out as a company because in Texas, a contractor does not have to be licensed and his company isn't listed anywhere.   I have a lawyer in California, but not in Texas. I'll probably ask him to look at the contract for me but I'm not sure if I should find a lawyer in Texas to make sure everything is written correctly.   I have reached out to many other contractors to get more than one bid, and no one has given me an actual bid, but a few have ball parked it and said it's either too big of a job, or they can't get close to the price I want to pay.  I would appreciate any input. 

@Greg Dickerson Thank you!! 

@Greg Dickerson Thank you.  This is great information that I did not think of.  The contractor that gave me the referrals has his own workers except for a roofer.  Do you know the best way to find an inspector?  That is a great idea and sounds like it would be worth the extra money.  

@Kuba F. Thank you for your  response.  None of the referrals live near me, but your suggestions are helpful.   I especially like the idea of starting with smaller projects until we have a relationship built up.  It's tempting to jump into a major fixer, but I'm going to hold off until I have a few under my belt and have a team built up I can work with. 

I live in southern California and I'm purchasing my first flip in Texas.  I'm just starting to put together a team and I was referred to a contractor that sounds like a great referral.  He gave me a list of investors that have hired him and some are out of state.  I'm going to call them and I have a few questions to ask, but I'm wondering if there is anything important I'm missing.  I don't want to take up too much of their time, but I want to make sure I'm asking the right questions.  I would appreciate any input or suggestions. Thank you. 

Dwelling fire (rental properties) usually increase when the insurance company increases the dwelling, has a rate increase or if you have a claim.  The 10% annual increase is somewhat high, but if it's just a rate increase and the company does not have another one for 4 or 5 years, it's not too bad.  It could be timing.  You may want to check your dwelling coverage and see if it was increased.  It's a good idea to shop around occasionally to make sure you're getting a good rate and of course make sure you have proper coverage and a solid company. 

 I was looking south of Houston, but I'm open  to any area that makes sense.  I don't know anyone in the San Antonio area, but as long as I have a good team, I'm willing to go where the numbers will work. 

I am an insurance agent and we write landlord policies.  The coverage is a little different because you do not need to typically insure personal property, but you will have loss of rents and liability as a landlord.   I'll be happy to help you with a rate and insurance. 

@Kristina Mahoney Adams Thank you. I will message you. I am looking to build a team.

@Michael Tripp Thank you. This is solid advice and I appreciate your suggestions.