Watch Next: House Flipping for Beginners Playlist: kzbin.info/aero/PLth4sDjOXnLXR2wUFLQkwd67Wuxx9lKRG
@catoceo98872 жыл бұрын
Excellent advice especially on paying after job is done. A good rule of thumb is to have the scope of work and contract set up for draw payments after each project is successfully completed. Also, as a flipper NEVER pay for materials out of your account. Have it in the scope of work and contract for the licensed contractor to pay for everything. That way materials won’t get stolen because the contractor will watch over it a lot better.
@BeadnWithNicoleB4 ай бұрын
What if you're a homeowner? How does it work with paying for labor and materials?
@ryanodonnell18924 жыл бұрын
I am a contracter and I agree with your analysis! Excellent points. There is a vast difference between contractors so far as quality of work and materials & finishes. So, when considering bids quality should be considered. One should not expect the lowest bid to do high quality work. Low bids usually mean that the contractor made mistakes and left tasks out of his scope of work, if a scope of work was even produced. Loved the video, all good points! Thanks for keeping people informed and keeping the trades out there in check! A great baseline standard practice reference.
@TransformRealEstate4 жыл бұрын
Hi Ryan, thank you so much for your comment! It means a lot to me coming from you as a contractor! I’m glad you agree with my analysis. You are absolutely right that the bid quality should be taken into account, not just the price. Unfortunately many homeowners/investors don’t realize that and fall for cheaper bids. Hope we can help educate them. Let me know what else you’d like to see on my channel 😊
@Onward19693 жыл бұрын
Everything you said is correct. I am a estimator for a big HVAC company. The most important thing is clarifying the exclusions and the inclusions. We are full mechanical contractor. That means we have multiple sub contractors under our contract. Controls, insulators, sprinkler, plumbing, craning etc. I always ask them to clarify there exclusions - what there not including. Therefore they cannot ask for an extra if they did not included in their exclusions list. Example: If they tell you that they don’t include scaffolding in there quote then it’s up to me to carry the rental of scaffolding in my price. But now the onus is on them to clarify. Always ask for inclusions and exclusions. It’s rare not to have exclusions. Part of the strategy is to get you sign to the low quote and then extra you death. Good luck.
@kobiifergan24052 жыл бұрын
I would love if you could share a contract with a contractor or make a video explaining what is important in a contract with contractors. regarding work and materials, should the contractors' proposals ask them to write material and work separately?
@crwlh67213 жыл бұрын
Thank you! This was extremely informative & helpful. I recently found your channel & subscribed after watching just a few minutes of a video. I appreciate that you are thorough in your explanations & are concerned with delivering meaningful information. Your channel is entertaining but, more than that, it is thoughtful & educational. This makes your videos stand apart from others I've seen. Your succinct & deliberate approach is uncommon, giving your videos a uniquely fresh appeal. The only negative is that there are not more videos! I look forward to additional content (hopefully there's lots more on the way). I can see you becoming a hit show one day .. just please don't change your explanatory/instructive approach. It really sets you apart.
@RonaldRohdeLaw4 жыл бұрын
Definitely get these agreements in writing! Watch out for liens from GC or subcontractors too. Thanks for sharing
@TransformRealEstate4 жыл бұрын
Yes, good point! It's important to make sure that your contractors are not going to put a lien on your house.
@lisapierce27093 жыл бұрын
Very valuable information! Finding a good contractor is my biggest concern, so thanks for this video!!
@TransformRealEstate3 жыл бұрын
So glad to hear that!
@charlottez98906 ай бұрын
Great advices
@はII3 жыл бұрын
OMG ! You are a gem 💎 and so true of all the things anyone would want .
@GuitarsAndSynths11 ай бұрын
this is great advice always get multiple bids and complete work and price breakdown for scope as you mention.
@amazinggrace73443 жыл бұрын
Your videos have been so helpful in motivating me to finally starting my real estate business. Thank you for your straightforward, easy-to-follow tips! I wish you much success.
@elijahrhea99684 жыл бұрын
Southern Cali, my step dad is great, now working on commercial buildings! Desert and pacific enterprise
@TransformRealEstate4 жыл бұрын
Thanks for the information. I'm only in the Bay Area for now, but I'll keep that in mind
@hiepla50762 жыл бұрын
Wow! amazing analysis Lisa:) Thank you very much for all your advice!
@jaymoney5102 жыл бұрын
I’m ready to renovate my house but it all feels so daunting. I will get this done someday.
@frazahm Жыл бұрын
Saw a few of her video and another very insightful video.
@pebtsevxeemthoj33913 жыл бұрын
My dad and I got rip off from a contractor like that from one of my cousin too at the end...Thanks for your information.
@k.walker54283 жыл бұрын
This was extremely helpful!! Thank you for directing me to this video. So informational!
@mrinalthigale5023 жыл бұрын
Hi thanks for the excellent tips. Can you make a video on how to write up the scope of work . Perhaps share a sample. Appreciate it thanks
@TransformRealEstate3 жыл бұрын
Check out this video on scope of work: kzbin.info/www/bejne/mXPdmnSMma91hMU
@niameanspurpose Жыл бұрын
these tips are excellent and relevant to any business! thank u 4 sharing❤
@mariaandreaduenas34794 жыл бұрын
Love the tips! Have you ever come across the "finish early get a bonus" incentivizing them to rush the job and not finish with quality work?
@deepikaatkinson41112 жыл бұрын
Wow, Thank you so much.. Very informative and great tips, learned a lot from you on this field. Like we always learn from each other..
@Rambleon444 Жыл бұрын
Tip #7 Don't hire friends or families unless they have exceptional character, or you could destroy a relationship.
@kathyjang77394 жыл бұрын
Thanks for sharing the lessons learned based off your experience!
@TransformRealEstate4 жыл бұрын
Yeah, my experience was painful and I hope by sharing it, others don't have to go through it :)
@belindaojo1982 жыл бұрын
Thanks, this was very informative and helpful.
@zzee_ooo3 жыл бұрын
Learned a lot from your channel. Would you be willing to talk a bit more in depth about coming up with SoW and writing contracts in another video? Maybe share a contract template or some examples?
@TransformRealEstate3 жыл бұрын
Great to hear! Here is a video on scope of work: kzbin.info/www/bejne/mXPdmnSMma91hMU
@iamDonareen3 жыл бұрын
This video is so helpful. This is my first time looking for a GC and im nervous. Now I know what im looking for. THANK YOU FOR THIS VIDEO!! New subscriber!!
@TransformRealEstate3 жыл бұрын
Thanks! So happy to hear that!
@jinryu95393 жыл бұрын
So informative. I learn a lot from your vids.
@molondon30713 жыл бұрын
Great video I thank you for what your doing for the community queen I’m a big fan
@isodude26164 жыл бұрын
Great pointers. I have been burned in the past and is still looking for a decent one in my market. Thanks for the video. Some new video ideas would be on how to look for a mentor(getting them interested in your value add or joint venture maybe), a broker for loans or how to form a dream team really lol
@TransformRealEstate4 жыл бұрын
Thanks! Good contractors are so hard to come by, but they do exist :) Thanks for the ideas! If you watch my new video: kzbin.info/www/bejne/imeTqWh4iMd8Z8k I actually share information on how to get mentorship by adding value to experienced investors. You can also check out my video on Hard Money Loan as I always use hard money to fund my flips. I'll work on the dream team idea, it more through trial and error and then you grab onto the good people you find and keep working with them lol
@ns45433 жыл бұрын
Could you please recommend a contractor. We are buying a fixer upper and looking for a contractor. Also thanks for your videos. They are very informative and well structured. Great work!
@maxoblivion3 жыл бұрын
I like the way you think.
@NerdNest0 Жыл бұрын
How about payment schedule? If the contractor ask 50 percent upfront, is this considered a huge red flag?
@molondon30713 жыл бұрын
This video motivated me thank you
@binhhua143 жыл бұрын
great information!! I'm in the process of finding a good contractor. I was wondering do you draft the contract yourself or do you sign the contract given by the contractor?
@albundy39292 жыл бұрын
Do you have a buy price formula, as in % of ARV? Or do you have different formulas for different price points or work needed? Thanks so much!! Love your videos....they are super helpful!! You have motivated me to become a flipper again, but this time with a more solid plan.
@ralonb3 жыл бұрын
So helpful!
@StacyThiTruong3 жыл бұрын
Should a bid from contractors be itemized? I made the mistake of telling the contractor my budget and he gave me a flat quote in the bid with a list of work to be done but no breakdown, so I am wondering if he just used my budget as the general estimate.
@vickywilson10484 жыл бұрын
Great video! Thanks for the tips!!
@TransformRealEstate4 жыл бұрын
Thanks! Glad it was helpful :)
@thisblondefromla4 жыл бұрын
Great tips!! When you set up the payment plan how do you decide when and how much you pay? How many payments do you usually make during the course of a project? Do you usually have the contractor buy the materials or do you buy them or a combination of both? Thank you so much for sharing your tips!
@TransformRealEstate4 жыл бұрын
Usually the contractor asks for payments. About every two weeks, depending on what work is done. I don’t really know how many times per project. I just review every time when contractor asks for payments. Contractor buys most materials, but I order stuff that I’m particular about online or in the store.
@thisblondefromla4 жыл бұрын
Transform Real Estate Great!! Thanks so much!
@tatsianaelavaya4 жыл бұрын
Great tips!
@TransformRealEstate4 жыл бұрын
Tatsiana K thanks, glad you liked it.
@albundy39292 жыл бұрын
Hi Elisa, do you ever wholesale or wholetail (sell with any rehab?)properties?
@BHights0034 жыл бұрын
Do you look for a contractor to evaluate the property before you purchase the property or after?
@michaelforster41483 жыл бұрын
I am curious on this as well.
@macjusss4 жыл бұрын
Great video! Do you use your own contract or the contractors?
@TransformRealEstate4 жыл бұрын
Justin thanks! I usually use their contract and review and add my own terms before signing.
@ESG133 жыл бұрын
The best contractors are on Craigslist..lol jk I agree with you a 💯 percent
@the_life_of_thang_nho4 жыл бұрын
Thanks for the video. Currently reading the book on estimating rehab costs
@TransformRealEstate4 жыл бұрын
Glad you liked it. What's the name of the book and how do you like it?
@nancychen81664 жыл бұрын
hi Elisa, thanks again for the video, very informative. you mentioned about pay the contractor for the work they have done. How about if they ask for prepaid to buy material because they are short of funds? should we buy the material and deduct from the payment? any suggestion? Thanks in advance.
@TransformRealEstate4 жыл бұрын
Glad to hear that, Nancy! If you have to prepay, just pay as little as possible (maybe for 1 week's worth) and have the contractor put it in writing what the payment is for. Most contractors use their own money to fund the work first, and ask for reimbursement.
@loserplanet3 жыл бұрын
If they are "short on funds" that may be a sign that they are disorganized. Just my opinion.
@catoceo98872 жыл бұрын
@@loserplanet exactly. Good reliable contractors have money to complete jobs. If they are paid draws on completion of work, then they need to get the task done to get paid.
@krage173 жыл бұрын
Do you have examples of scope of work you could share?
@TransformRealEstate3 жыл бұрын
Check out this video on scope of work: kzbin.info/www/bejne/mXPdmnSMma91hMU
@ujacka552 жыл бұрын
Penalties for late work may cause a contractor to inflate their bid to cover their risk. Best to go with incentives for early completion.
@orcuttnyc2 жыл бұрын
Do you hire a general contractor who hires the varios contractors?
@TransformRealEstate2 жыл бұрын
Yes
@stowesuz4 жыл бұрын
I can’t find any contractors who are available for 6 months or more, even a year.
@TransformRealEstate4 жыл бұрын
Yeah, when the market is good, contractors are very busy. If you can't find a GC to start work soon, you can also try to get some subcontractors to do work too. Good luck!
@stowesuz4 жыл бұрын
@trasform real estate That is exactly what I had to do. Disaster. Grrr. I wish I had not started this. I didn’t want to live in a development where every house is alike and even the same color. And I wanted a garage. So I bought a garage with a 50’s house attached. I didn’t realize how much hidden renovation was required. I also didn’t know that Lowe’s and Home Depot don’t install tile in bathrooms any more. I got a homeowner / contractor permit for projects under $30K. I didn’t have any leverage to get my subs to show up regularly for me so that first 30k part of my renovation took 6 months. In the meantime I waited patiently to get to the next phase but I still don’t have a contractor and there wasn’t that much done in the first phase: plumbing, electric and some floor and stairs repair. I want to open the family room area by the kitchen to a screened room with French doors. I wanted to pay someone to design the renovation but all the designers I hoped to work with are part of design and build companies. In fact, one designer who seemed good did draw up a plan (not free) but when I showed it to a contractor who didn’t have time to do the job he said the plan didn’t make sense and was neither practical or an interesting point of view.