All Forum Posts by: Account Closed

@Brian Pulaski Great advice thanks!

Hey Brian Pulaski Thanks for the input! Do you have any suggestions for people going the sub contractor route? Tips tricks etc?

Hey @Alex Smith,

Congratulations on a great first flip. It looks really good. I also like how you and your wife have your plan in place. A lot of investors just start buying not really knowing where they want to be or how they plane to get there, they end up going in circles. 

What would you say was the hardest part of doing all the work yourself? Time, Learning, etc?

Hey Everyone,

I wanted to talk about choosing between Sub contractors or General Contractors. When should you hire one or the other? What should be some deciding factors? How does each one affect your business models? Etc--

Business Models vary by region, South Jersey, Central Jersey, Jersey Shore, Philadelphia but the core of the decision process remains the same.

South Jersey Is mostly a residential development area so the rehabs center around single family homes. Where as in Central Jersey you start to get into more populated areas where your now dealing with Town homes, and bigger multi units. Down at the Jersey Shore you are doing more tear down and rebuild, which is the same for Philadelphia.

So that being said, Sub Contractors. They are definitely the best option for keeping you rehab cost down. They give you the benefit of control over time frame and cost. You also get to choose who is working on the property on the important items, like electric, plumbing, HVAC, etc. The down side for subs is they can be very time consuming. Managing all the different moving pieces can be overwhelming, especially for newer investors.  Your budget can also get out of control quick if you don't keep track of what each person is charging.

General contractors are all about leverage. Their main benefit is to New investors who don't know anything about construction and to Seasoned investors who are looking to make the jump from 2-3 properties at a time to 10-12 at a time. While the investor is concentrating on finding deals and money the rehab can be getting done. They would also have their own team of subs that work with them, which means the investor doesn't have to worry about finding them their selves. The down side is they are definitely more costly. There is a bigger level of trust needed with GC's as well. You need to make sure you can count on them to get the job done. Some GC's will take on to much at one time as well which slows them down on your projects. 

There are definitely plusses and minuses to both sides. Like I said it really comes down to your business style and what you want to accomplish in Real Estate investing. Think about your goals and personality. Think about the people you like interacting with and what you favor at your own job. These answers will help you choose Subs or GC's. 

As a General Contractor Myself, I choose Leverage. Please let me know what you chose and why? This will help us all learn and see what choices are out there.

Hi everyone,

Contractors can be a touchy subject, as we all can agree. Too many times we run into contractors screwing people over, making up excuses, general lack of interest in the projects, lying, etc. etc. Too often have we had the bad experiences.

It’s a shame how the industry has fallen. This is why it’s so important to find that trustworthy contractor. But how do you, what do you look for? How do you find the one among many, the ripe apple in the bad bunch, The needle in the haystack?

I’m a contractor that works in South Jersey, central jersey, and the jersey shore and I wanted to start a Discussion on how to find that contractor. Here are some tips that I have:

1. It starts at the first conversation. When you call, email, or talk to the contractor the first time get a feel for them. See if their style of business, ethics, emotion, personality, and manner match what your are looking for. Make sure their someone you can work with. 

2. The next big thing is when you get to the point of them doing an actual bid, make sure they take notes, measurements, ask questions, and are in general paying attention. Make sure they have a vested interest in he job, even if they know they might not get it. Any contractor that’s going to stay around should be willing to bid on anything you have no matter if there is competition. 

3. Next they should definitely get the bid back to you in a timely manner. This ranges from contractor to contractor and job to job, but it should be sometime within a day to a week. Keep following up with them as well till you get it. For example I get mine back next day unless it’s the weekend. Then It’s next business day. Also they shouldn’t be afraid to tell you their numbers and costs. For example again I put mine in a detailed SOW with line items written out cost by cost. Most contractors aren’t that detailed but they still should should know their costs.

4. Also being on time to all meetings, in the contractor world that translates usually to within 10 mins. The more on time the better.

These are the things that have helped me as both an investor and a contractor. How have you gone about this process? Comment below and give your tips.

Hey Mayer M. I am a contractor that only works with investors in New Jersey. Please send me a personal message. I’d love to see if I can help out! Talk soon,

Hi Yvette Chung I am an investor and have a construction company down here please feel free to reach out! Talk soon,

Mindy Jensen There are a couple ways I have found that investors can protect themselves to the best degree that they can. 1. Always ask around about the contractor. Look for referrals, talk to other investors, see if anyone has worked with the contractor before 2. Ask to see job sites that are currently under construction and make sure that the subs there know who the contractor is when you walking through. This way the contractor can’t show you someone else’s job site. 3. Always make the contractor sign a contract, and lean waivers. If they are unwilling to, do not work with them. 4. Be willing to go through volume. Don’t be afraid to go through multiple contractors in this interview/getting to know process. 5. Sometimes going with a business that you know has been working in a town for over 10 to 15 years is worth it in the beginning. They may be more expensive but they are less likely to run because they have an established business and name. 6. And lastly, remember that investing is a business and that finding a contractor is just one part of it. The more you can treat a contractor just as an expense and a piece of your business the less likely you are to go with whoever the cheapest is. Because you’re going to be looking for someone who will fit into your business and help you sustain a long running business. So whatever they cost is what your numbers for construction will be. Anybody else have guidelines?

Hey everyone, I’m an investor and construction company as well. It’s always difficult to find a happy medium between the two, investor and contractor. I think it comes down a lot to relationship and track record. I will work with an investor on their payments and plans based on who their lender is. I will still do a deposit I sometimes will do demo first in order to get it. I also will take a smaller amount upfront as opposed to a bigger one because I know that some investors if they’re just getting started don’t have the cash to front anymore than I would. So the production might be based off of the draws coming in, but I work with them on size and amount to make it as smooth as possible. I also only work with investors I’m a little more suited for them then most contractors.

Hi Michael, I am a contractor working in South Jersey specifically with investors. P.m. me and we can talk further. Talk soon,