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Why NOT to Hire a General Contractor When Flipping Houses...

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Flipping Mastery TV

Flipping Mastery TV

Күн бұрын

Пікірлер: 205
@keresha1222
@keresha1222 6 жыл бұрын
Lol he done pissed off a whole bunch of GC’s 😂
@lyric901
@lyric901 3 жыл бұрын
This is GOLD information. I've completed 1 rehab project and yes the GC did provide a total list of things they would complete but not in detail of the cost.
@davidjon3009
@davidjon3009 3 жыл бұрын
I've been in the trades for over 25 years and I've seen builders run a job for a customer and get a piece of every trade that they sub the work out to. And believe me, they are putting a huge chunk of money in their pockets... And the customer is usually blind to the whole process . So I'll say it again, GREAT VIDEO! I subscribed to your channel because you know your shit!!
@christophermorris2124
@christophermorris2124 7 жыл бұрын
I strongly disagree with this. My reasons are as follows... 1) In most states unless you are going to live in the house (not flipping the house) you are required by law to have a General Contractor. 2) If you are just starting off in the venture of flipping houses you can easily go broke on your very first flip. It is so important to have a professional that understands what will require permits, code upgrades, and all of the related cost. 3) If a General Contractor gives you a fixed price (as mentioned in this video) that is a great thing. Now you have hard numbers to work off of. If the job cost more than what was agreed to then the contractor is at a loss, not you. You do not have to worry about going bankrupt on your flip. If the Contractor quits or goes belly-up all you have to do is contact the registrar (as long as he has a licence) and they will replace your contractor. 4) It looks easy on TV and on KZbin, but it's not. There is a lot to learn. Start off with a General Contractor and learn on the job. Eventually you will learn the skills and knowledge of the trade. There are more people loosing money trying this than making money. I'm a General Contractor that flips house's so I'm speaking from experience. You won't catch me doing my own taxes or drafting up the contracts when we buy a house. Do what you know and hire someone for what you don't know. That's the only way to succeed.
@ericb7131
@ericb7131 6 жыл бұрын
I'm a General Contractor. Here's why you should hire general contractors... yeah... ok
@sarahann530
@sarahann530 6 жыл бұрын
s bright Incorrect , most States allow Homeowners to pull their own permits if is their Homestead
@ClassicMan33
@ClassicMan33 5 жыл бұрын
s bright Most states allow home owners to pull their permits, yes. As long as they don’t sell their house within a year. They must live there and use it as a primary residence. And they can only pull one permit a year. If they do sell their house within that timeframe they will be fined and penalized. If the house is listed in a company’s name, no way in hell is the owner pulling a permit, unless they hire a GC, or unless they are actually the GC who happens to own the house. Or unless they have a GC that works for their company who does all the permif pulling.
@Lanainvestor
@Lanainvestor Жыл бұрын
what state? we need a GC
@christophermorris2124
@christophermorris2124 Жыл бұрын
@@Lanainvestor Arizona
@bobisthebuilder3982
@bobisthebuilder3982 7 жыл бұрын
As a General Contractor I will say you didn't hire a GC you hired a Handyman. A guy or girl with a ladder and a truck doesn't count as a GC. Let me explain WHY YOU SHOULD hire a real GC. 95% of the time customers are poorly misinformed. They learn what they think they know from TV shows. As a General Contractor I start off with a thorough property inspection. I give a detailed estimate who does what and how much and what is included as labor, materials, supply's and services. My bids shows as much as possible. The markup pays for the GC to secure and supervise and pay the subcontractors. The markup also pays the GC for his time and energy to get warranty calls taken care of. The markup also pays for miscellaneous materials, supplies, delivery of materials someone to meet the driver count, sign and secure the materials delivery. There is no profit in a markup. As a Subcontractor I have a non interference provision in my contacts. I AM IN CHARGE I am the only person that the customer and any subcontractors speak with. I GIVE progress updates, competition reports, and payment requests to the customer. I GIVE change orders, forward payments to, and address concerns with the subcontractors. I take possession of the entire job and property until completion. I allow only a limited number of private site visits usually one per week to avoid interference from owners with Subcontractors. The customer can relax knowing the job is getting done right.
@Metrorenovationsandmore
@Metrorenovationsandmore 6 жыл бұрын
Excellent!! I get weekly calls from newby investors that don't know soffit from facia. I here horror stories all the time about them getting ripped off by subs and "bad" contractors alike. UNTIL they gain some knowledge, they NEED a decent human being (a solid GC) who KNOWS his subs to look out for them and keep them from doing something stupid. This video's advice just assures I keep hearing horror stories from these gullible new investors that just got out of the ra ra seminar!!
@islandgirl5382
@islandgirl5382 6 жыл бұрын
Thank You for your detailed explanation!!
@hilarioflores3755
@hilarioflores3755 6 жыл бұрын
Exactly.
@tonyjablonski
@tonyjablonski 5 жыл бұрын
In a perfect world with a rock star GC that is of course the ideal outcome. Until such person is found through a list of quality references, than I can see why there would be apprehension from an investor or homeowner standpoint. I agree, there are great GCs and bad ones as in everything in life. I see both sides.
@unleashedrider4309
@unleashedrider4309 5 жыл бұрын
Dont forget youre bonded by the state and it makes sure youre honest. If you mess up. the customer can go after the bond with very little effort. An insurance policy so to speak. My dad was 40 years as small GC and was the best. He never excepted good, for good enough. It always had to better than good. They do exist but he was not the cheapest, he was the highest bid bc his work was exceptional.
@hardset-vi3ze
@hardset-vi3ze 6 жыл бұрын
I've been "flipping" house far longer than this term has been coined. (40 plus years) and been a licensed and bonded contractor too. It's not easy and it's labor intensive to do the job right. Just throwing down some new carpet and painting the place is not a remodel. I've grown to hate this term. Who wants to buy a house that been flipped by some amateurs without a contractor's license and is probably illegal in most states?? In the past 20 - 30 years since everyone (starting with Carlton Sheet's "No Money Down" lectures is teaching others how to flip, I have an extremely hard time (in a good Real Estate Market) finding a place worthy of fixing up for resale (flipping) that actually pencils out. In other words, then you figure in ALL your costs and subtracted that from your profit, there's not enough money or even a negative amount left for any semblance of profit. Too many people who don't know what they are doing have over saturated this market and made it extremely competitive and almost impossible to find a place and make a decent profit. You got to be at the right spot at the right time and that seems to require too much luck and TIME, or trying to be at two different spots at the same time. I know for a fact the average guy teaching how to flip doesn't make nearly as much profit as they claim and most are working for a corporation and filing a W-2 income tax report at the end of the year. That along should reveal who these clowns really are...employees! Every market has a saturation point. Think about companies like Amway, or door to door vacuum salesman like Kirby, etc. The product gets over-marketed and this is what is happening right now with Flipping house. Every hear of the term Ponzi Scheem? As long as the housing market is increasing in the double digits every year you still have some chance but good luck on predicting that. If the market stays the same or slips just a little you can usually kiss your profits goodbye. Now a days, 90% of the time everything costs more than you estimate. These hustlers only show you success stories....NOT the larger number of people who have failed!! And last but not least if you go to any of the "Free" seminars, there's always a hook in there that pitches to you how important it is to spent thousands $$$ more for the "inside" information or "advanced" courses on how to get rich quick. Research the market well before you give your money away. Good luck cause you're going to need it if you decide to take the plunge.
@carlosjoelgarcia3200
@carlosjoelgarcia3200 6 жыл бұрын
He starts with "I believe... There are certain situations that are to your detriment to hire a General Contractor" NOT EVERY SITUATION, just SOME SITUATIONS!!! Can you guys in the trades LISTEN!!! BRILLIANT VIDEO!!! --- He is not putting GC out of a job, he is educating investors!!!
@HjCrawford
@HjCrawford 5 жыл бұрын
Yes!!
@thomasnoe9987
@thomasnoe9987 4 жыл бұрын
It feels like a hassle to find all your subs in all the markets your flipping in. That’s a LOT to manage. Any recommendations?
@Eric3Frog
@Eric3Frog 3 жыл бұрын
Excellent question .
@carmenLopez-xn2qq
@carmenLopez-xn2qq 4 жыл бұрын
I do not allow any one in my properties that ARE NOT licensed and insured and I do check with the state to make sure they are up to date. So weather or not you use a GC, make sure your team is licensed and insured. DO not take a short cut there
@chrisislas1838
@chrisislas1838 3 жыл бұрын
Indeed. An unlicensed electrician maybe very good, but if your house burns down and you file a claim on your home insurance, you can bet the there will be an investigation. New wires, new fittings, new this or that, your home will not be covered and you'll have a burn house and still responsible for the mortgage. Big jobs requires legality in every aspect. I know a lot of hard working Mexicans (la raza), illegal or not, it would be nice to see them licensed and legit.
@rkimpsonyb
@rkimpsonyb 4 жыл бұрын
Taking steps to start my Real Estate investment career. Just wanted you to know I'm watching all of your videos to gain as much knowledge.as I can. I find them very informative!
@rajwantvirk5182
@rajwantvirk5182 8 жыл бұрын
I agree with you. I have been doing this business past 6 years and realize even if you hire a GC you still end up managing every thing. In some cases I had a problem where GC did not pay his Sub which was another situation and waste of time. On the other hand, I did have some GC responsible who delivered the project on time. It is a must to have licensed Electrician, plumber, HVAC tech, chimney repair/cleaner, and roof.
@mikhro87
@mikhro87 3 жыл бұрын
You just hired the CHEAPEST contractor. You get what you pay for. Don’t hire cheap labor and expect the highest quality. If you had performance bonds, and a proper contract, you wouldn’t worry managing your GC. Homeowners never want to educate themselves on the process of a project, only on how to save money by not hiring people. If you do things right, with partial release of liens from subs as you hand that check to your GC, you wouldn’t have that problem. It is the owner’s responsibility (at least in Florida) to make sure the GC pays their subs. Don’t hand a check unless you get notarized partial release of liens from all subs, and you wont get burned.
@themolis
@themolis 8 жыл бұрын
May not hire a GC for monetary reasons, but many municipalities and/or states require particular work scopes to be done by licensed subs even if permits are not required for specific portions of the work. We found this out when simply painting the interior of a flip. The state did not require a license, but the municipality did require a competency card/ local contractor's license. So, your point is well taken from a finance standpoint, but it's only part of the story which could cost people lots in fines and headaches. The warning about hiring licensed contractors where necessary should be in an instructional video like this. Licensed professionals will cost more due to WC, GL, overhead, etc., but there is a need for the public to be educated and know that there could be serious repercussions from cutting the wrong corners.
@ajx352
@ajx352 6 жыл бұрын
This is why you have to do as much work as you can with the doors shut and the windows so no one can see through them.
@ClassicMan33
@ClassicMan33 5 жыл бұрын
ajx352 Gangsta. Neighbors are straight snitches. Hell, I’ve even seen subcontractors snitch because they were fired.
@unleashedrider4309
@unleashedrider4309 5 жыл бұрын
@@ClassicMan33 yup we make sure call on non licensed people all the time.
@jamilhill2949
@jamilhill2949 8 жыл бұрын
I'm going to school to get my associates degree in home building and remodeling, in hopes to do exactly this in the future. I'm just wondering if I'm on the right track and if pursuing some kind of bachelors degree in real estate would round out my skills and be successful?
@tonyjablonski
@tonyjablonski 5 жыл бұрын
Skip the school part and just get your real estate license and learn about valuations in the area you want to invest in.. know your numbers to a tee. Then talk to Contractors and get an estimate for the type of work homes need, find a killer deal and go for it. Nothing will teach you like actually doing it. You got this!
@hanahloya9261
@hanahloya9261 3 жыл бұрын
So when a first-time investor is looking at houses to buy and renovate, how are they to estimate the cost of renovation without a GC? It seems unrealistic for a first-timer to be able to estimate the cost themselves and also unrealistic to get each subcontractor out to the house for their individual estimates.
@samlyons3552
@samlyons3552 4 жыл бұрын
never occurred to me , by hiring a GC I would miss some education.....Great Tip
@realestatetoday3620
@realestatetoday3620 4 жыл бұрын
Good video and I do agree with the points given. The one caveat to this is if you are new getting into the business you can insulate your self from mistakes in pricing by using a GC. As your experience grows you can then start using your own subs. Also another concern starting out is code compliance. If something is not done to code and you don't catch it your the one holding the bag.
@tonybrowns649
@tonybrowns649 7 жыл бұрын
I agree. If a GC is needed just tip him$600-$1000 to put his name on it and you bring your subs and complete it. If your running mutiple projects then "create" a project manager. I.e. wholesale 2.5 ton with heat unit is $1650 in Atlanta GA Rheem brand, 10 yr warranty. Drywall is $6.89 per sheet, and 42 inch stained solid wood cabinets with soft hinges for an entire kitchen are $2000. So yes find your own subs and NEVER pay a penny for labor until 100% finished; not 1 penny. Wholesale builder outlets single pane windows $90 etc. Pay an amigo a daily rate $165-225 to do a lot in 8 hours.
@alwayswell6119
@alwayswell6119 2 жыл бұрын
Where to find those type of people who will work for a daily work and get a lot done in 8 hours?
@jclasso
@jclasso 6 жыл бұрын
I disagree with this totally! If you decide not to hire a general contractor, you will end up making lots of phone calls each day, and every phone call has its own headaches. On the other hand, having a GC managing the project, it's only one call per day, a few visits to the project, and the GC gets pay when the project is 100% done. End of the story.
@BigBoyO56
@BigBoyO56 8 жыл бұрын
So if you are the one flipping the home, and you decide not to hire a GC.. technically.. does the home flipper act as the GC since he or she is organizing the whole project and hiring plumbers, electricians, hvac techs etc ? Because that's exactly what a GC does.. hire subs and organize. Please let me know what you think of this comment. Otherwise, great video, with very helpful and knowledgeable tips!
@munsters2
@munsters2 7 жыл бұрын
One of the biggest headaches in construction is sub-contractors that don't show up to work or take forever to fiinish. Having a general contractor might be better because he deals with these sub-contractors more often and they are more likely to show up and finish work for him than they are for the homeowner..
@5e34nut
@5e34nut 7 жыл бұрын
So basically You buy the house to make profit But the GC shouldn't make a profit off you And hypothetically what would be your mark up when you sell the house Buy low - sell high Will you disclose your figures and work methods to your potential customers ... If the GC is concise reliable and a pro at what they do then it's a willing formula
@raynellholmes1011
@raynellholmes1011 7 жыл бұрын
mohammed ali great point. Seems a professional contractor would want to secure everyone best interest so to have repeat business. You don't get far by screwing people over.
@5e34nut
@5e34nut 7 жыл бұрын
Raynell Holmes Thank you kindly sir
@loganharrington6017
@loganharrington6017 7 жыл бұрын
Mohammed Ali, you are incorrectly assuming the reasoning behind NOT hiring a GC. GC's have their place in the traditional retail market where your Joe Shmo homeowner is fixing their house or doing an addition. Rehabbing less than 20 houses a year, the rehabber has NO BUSINESS hiring a GC as it cuts into your profit margin and it does not allow you to learn the actual prices of rehabbing a house. If you rehab more than 20 a year, you should be hiring a full time project manager which will still be half the cost of paying a CG to do the same thing. No one said a GC shouldn't be making a profit. It is simply the wrong market. The rehabber IS the GC. No need for 2 on the job.
@jairofernandez8190
@jairofernandez8190 6 жыл бұрын
I work in construction i have elictrician painters plummers framer friends i dont need gc i can do drywall tape texture frame windows trim lawns can install cabinets...why would i spend thousands of dollars when i can just do it myself haha
@chrisislas1838
@chrisislas1838 3 жыл бұрын
Awesome, good to know!
@dimarossi2140
@dimarossi2140 7 жыл бұрын
I agree that some of your points are valid very valid but I as a general contractor always always break down the price to my clients I tell them what they are paying for plumbing painting framing Etc I know a lot of contractors don't do this but a lot of reputable general contractors do the thing you have to be most worried about when doing large renovations and using multiple subcontractors is when you have to hire a framer a drywaller a plaster a painter in to finish Carpenter and they are not contractors who have a long-standing relationship with a general contractor I find that the buck gets past a lot so the framer will come in and tell you as the homeowner well that's on the drywall guy the drywall guy will say no it's not that's on the framer the framer will say well actually you know what the plasterer should be the one to fix that so you have to be careful with these contractors passing the buck trying to take advantage of you because you're a homeowner and what is also very common with large-scale Renovations where the homeowner is acting as the GC is usually one of the contractors who does not have a lot of work will sometimes look to move in on the project the plumber you higher might be slow and I've heard stories in the past where the plumber will start getting into the homeowners ear about you know that finish Carpenter isn't doing a good job I saw him smoking pot on the job site you should let me bring in my finish Carpenter that I know I guess what I'm saying is if you were going to GC a large-scale home renovation it is a full-time job and be prepared to deal with essentially drama and I'm sorry if any homeowner ever hires a contractor to do a job and that contractor gives you a price and doesn't give you a comprehensive breakdown of what cost what you are foolish for hiring them and that contractor is not worth hiring to begin with you hire a contractor to build an addition and half way through the addition project I have a really good friend who's the painter he's looking for work right now I would prefer my friend to paint my new edition what is stopping the contractor from saying okay I will take $200 off of the contract because that's how much I figured for the painting the contractor that broke everything down from the beginning of the job now knows and you know exactly what should be coming off the contract total when changes are made
@YourMom-op2nz
@YourMom-op2nz 2 жыл бұрын
What about if you are flipping a property out of state ?
@SkuglaQ
@SkuglaQ 3 жыл бұрын
Great content from the get go!!!
@anastela9020
@anastela9020 3 жыл бұрын
i love it. but there's no link to the check list? .
@woodland1504
@woodland1504 7 жыл бұрын
This is a complex video for what he is trying to say so what I got out of it was don't hire a GC but become one...now if you say it that way I can really see the advantages, but in my expenses, it's a very complicated process and 9 out of 10 times you are losing time... the easy fix I would say is to request a breakdown from your trusted GC of the costs and labor.... I have to say it's not a bad video if you like to think its just complicated.
@MrHendrix999
@MrHendrix999 5 жыл бұрын
Depending on the amount of work that needs to be done and the scope of the work should determine if a GC is needed
@FlippingMastery
@FlippingMastery 5 жыл бұрын
+Big E good point. Carpet and paint don’t need a GC
@lisaniverson
@lisaniverson Жыл бұрын
Love it.
@sizwemavundla9599
@sizwemavundla9599 4 жыл бұрын
Wish I had seen this video before I hired a contractor for my renovation... Most Contractors are out there to make a quick buck and compromising on quality while there are at it...
@raynellholmes1011
@raynellholmes1011 7 жыл бұрын
This is the primary reason I am taking my time gerting into the flipping profession. As a teacher, I get 2 months off a year plus I'm handy with the tools. I'd rather find and buy my first flip that early summer then do each repair stage by stage. There is so much free information and how to videos on KZbin its like going to university for free. Doing it this way gives you the knowledge like he said and allows you to control cost. The only things if hire a contractor for is to do plumbing and electrical stuff that require more understand of those systems.
@kay2136
@kay2136 2 жыл бұрын
Excellent advice! How do we go about formulating a team of quality sub-contractors?
@bayoustateroofing5733
@bayoustateroofing5733 2 жыл бұрын
When you sell a flip do you tell the customer how much money it cost?
@YourMom-op2nz
@YourMom-op2nz 2 жыл бұрын
What about dealing out of state?
@JuancoPRoFlow
@JuancoPRoFlow 4 жыл бұрын
What if I need to build a spec home, which way should I go. Thanks
@FlippingMastery
@FlippingMastery 4 жыл бұрын
If you have subs already then you could be your own GC but if you lack subs you will need a gc. Also how much time do you want to spend managing the build?
@JuancoPRoFlow
@JuancoPRoFlow 4 жыл бұрын
@@FlippingMastery I still need a licensed gc to pull permits for me, but yea I have my own subs that I've collected over these few years. At this point I don't mind spending most of my time managing my builds. I can't take these gcs going over budget, wasting materials, over buying materials, etc. I can do a better take off of materials than half these "gcs" out here. I might just go that route. What do you suggest? Get a gc to pull permits for me and I manage the entire build or should I keep trying to look for that one gc that is willing to work with me and my style of doing things. I'm a very detailed oriented person and its hard to find people as detailed and that have the same level of standard that I have. Sometimes I hate the fact that my brain is wired that way. But I can't help it, just looking at crooked outlet covers drives me nuts. They need to be perfectly squared so I can be good with it. Feel like Steve Jobs sometimes with his perfectionism in design and lines. Lol
@hotfares1
@hotfares1 9 жыл бұрын
It was told to me that having a general contractor license is a must in order to fix and sell a homes.
@lpj6882
@lpj6882 8 жыл бұрын
Fares Taveras in Oregon where im from you cannot sell homes with intentions to sell home(flipping houses)in Oregon you are required to gave a general contractor license. so anybody looking to flip houses check your local state requirements going off this guys advice.
@lpj6882
@lpj6882 8 жыл бұрын
Fares Taveras *have
@hotfares1
@hotfares1 8 жыл бұрын
L P J Thanks!!
@DIYApprentice
@DIYApprentice 7 жыл бұрын
L PJ Washington is similar. You either need to obtain a contractor's license to manage a project yourself or you have to hire a licensed contractor.
@randymaine9221
@randymaine9221 5 жыл бұрын
What a lot of you are forgetting is that in most states you need to be a licensed general contractor to do work over a certain amount of money. In my case in NC it is $30,000. Also you cannot own the house and pull a permit as the owner and sell it within 12 months. It takes a licensed contractor to pull the permit for work over X amount of $, which is necessary and not shown on all of these “Flipping Shows”. You also need to hire licensed plumbers, electrician and HVAC contractors and these licenses cost money and time to obtain. As a few of you have written, you don’t need a GC to do paint and carpet. Keep in mind that if you as much as change a faucet that has to be done by a licensed plumber. There are several codes and rules that most flippers don’t know or understand.
@ArmandoPerezContractor
@ArmandoPerezContractor 7 жыл бұрын
I do not know where you are working but in Florida if you are working in an investing property(not your primary house)you have to hire a contractor otherwise you doing something illegal.If you rehab only have a roof to do or electrical issue or plumbing maybe they can pull independent permits but most of the time a rehab has more than that and then a GC ,BC or RC is needed to wrap subs
@ClassicMan33
@ClassicMan33 5 жыл бұрын
Armando Perez It’s funny how everyone just blankedly uses the term “General Contractor”. GC’s can build skyscrapers. BC’s or RC’s can’t. Hilarious!!
@trecemoreno7400
@trecemoreno7400 5 жыл бұрын
Thank you for this information, I am so happy that i found this video. Our home was recently flooded and our flood insurance will cover the damage but so far with the quotes we recieved was not broken down with the general contractor. A very informatvie video thank you.
@FlippingMastery
@FlippingMastery 5 жыл бұрын
+trece moreno Great!
@mc6831
@mc6831 4 жыл бұрын
Hi Jerry. I live your videos. Very informative and educational. Where can I get the link that you mentioned that breaks down costs of rehabbing. Thanks
@mc6831
@mc6831 4 жыл бұрын
I think you said it was a checklist and how to estimate repairs. Thanks again
@FlippingMastery
@FlippingMastery 4 жыл бұрын
kzbin.info/www/bejne/e6WmdYqlf7unhac kzbin.info/www/bejne/kGrIhmtqrtppjM0
@5.10brwnskin
@5.10brwnskin 4 жыл бұрын
So its not necessary to hire a contractor for a property I plan to wholesale to my cash buyer. If I don’t do it will the cash buyers do it? What if my own estimate is incorrect?
@FlippingMastery
@FlippingMastery 4 жыл бұрын
watch this 3 part series kzbin.info/www/bejne/rpzdoIF9Z95pZ8U kzbin.info/www/bejne/p4XaZKqdo9ajZtk
@westzostin2879
@westzostin2879 3 жыл бұрын
Where is the link for “15 min way to check for repairs”
@samysosa2004
@samysosa2004 6 жыл бұрын
Great video How much do you think will cost per sqft For a smiple plan home of 1400 sqft Concert block I thinks its 40$ What you think ? 2.Also is it easy process to get the permit
@FlippingMastery
@FlippingMastery 6 жыл бұрын
samy depends on the extent of the remodel. Tell me more... Light: carpet paint $15k Medium: carpet paint kitchen bath: $30k Full blown gut: $75k Does that help?
@Christhegodson
@Christhegodson 4 жыл бұрын
Hi Jerry, If you're not hiring the GC. Then who would be the one to pull the permits?
@od4407
@od4407 3 жыл бұрын
YOU, DUH...
@ms.l1683
@ms.l1683 4 жыл бұрын
Agreed👊🏼 Knowledge is Power(ful)
@flicndills123
@flicndills123 5 жыл бұрын
Agree. Who ever doesn’t probably won’t be in business for long or will be leaving a lot of money on the table
@FlippingMastery
@FlippingMastery 5 жыл бұрын
+Dj Jarvis 👍
@asianstud240
@asianstud240 7 жыл бұрын
I am trying to get into flipping house to make money. I find that this is very helpful since I am a complete beginner. I plan on learning more through these videos so that I can be better prepared.
@asianstud240
@asianstud240 7 жыл бұрын
** houses
@ajx352
@ajx352 6 жыл бұрын
You should already have cash in the bank, otherwise you aren't buying anything. You should be working in your existing job, stacking your cash, and then using it to flip houses.
@KiriXGirl
@KiriXGirl 5 жыл бұрын
can i start contacting subs even though i dont have a property
@FlippingMastery
@FlippingMastery 5 жыл бұрын
+KewBerry not a good use of time. Focus on getting a deal first. Watch this: kzbin.info/www/bejne/rqHZeYSnjdWNo9k
@jeffclaterbaugh6415
@jeffclaterbaugh6415 Жыл бұрын
If you were going to act as your own general contractor, you should have the ability to do so. That means being able to coordinate the different trades people coming and going in the way that doesn't affect them negatively. It's about keeping communication lines open and knowing about how long each job should take, and not having them stacked on top of each other.
@robertlabrecque877
@robertlabrecque877 7 жыл бұрын
Good advice Thanks Jerry! Most people however are not familiar with the renovation process and therefore should hire a project manager.
@rbourge100
@rbourge100 8 жыл бұрын
Concise information in an entertaining format that rings true. Good Job.
@andyd5896
@andyd5896 4 жыл бұрын
do you need college to start flipping houses?
@FlippingMastery
@FlippingMastery 4 жыл бұрын
Nope
@subver6787
@subver6787 3 жыл бұрын
Take learning courses about 135 hrs, exam prep courses, and after the exam once you are ready. Should be around 300 to 400, depending on state.
@cookiee5272
@cookiee5272 7 жыл бұрын
There's a lot of truth at what he's saying , some contractors will cut corners when they fill like you don't know the requirements .
@omarmahmood2636
@omarmahmood2636 6 жыл бұрын
Jerry, thanks so much for this tip, do you think this strategy also apply for the new construction for building new house ? I am going to start flipping spec homes soon in Maryland and I am wondering if hiring GC will be a must or necessary for investor that worked already in renovation, but not in a new construction !.. Please help
@ClassicMan33
@ClassicMan33 5 жыл бұрын
Who is pulling the permit for your new speculative home? Hilarious.
@Eric3Frog
@Eric3Frog 3 жыл бұрын
How did this work out for you, Omar?
@EvandroFilgueiras88
@EvandroFilgueiras88 7 жыл бұрын
what about permits in areas where home owner CAN'T work as contractors?
@Fakeroblox19
@Fakeroblox19 7 жыл бұрын
Evandro Filgueiras good question...
@Fakeroblox19
@Fakeroblox19 7 жыл бұрын
Evandro Filgueiras is he saying to now own your own construction business?
@ajx352
@ajx352 6 жыл бұрын
You pay a GC $500 to pull the permit and then you get the subs to do the work and you pay for all the material and you have the permit inspected and finaled.
@stingsting6864
@stingsting6864 6 жыл бұрын
If I get my own subs and manage my deals myself, which subs should i bring in first in order ?
@josephsandgathe5897
@josephsandgathe5897 7 жыл бұрын
Jerry has great tips. Thanks, Joe S.
@asillynertasillynert2204
@asillynertasillynert2204 6 жыл бұрын
Static money is "bad investment" the longer it takes the longer it takes get back the less money you make. Secondly contractors charge more to "non contractor/builders" people. Because your only doing 1 house at a time so you will order "exactly what you need". Where it cost me more is when I have to come back and do 1 piece of base install one door knob because you miscounted. A general will normally have extra on hand because they are doing multiple houses. Even if they don't they will drop everything and go get the missing item (so that I will continue to charge them less) if I tell a "flipper" I need a item. They tell me to get it myself (fronting cash they will likely dispute later) or come back tomorrow (drive plus rolling tools out for a 5 minute thing). Also contractors will take longer fact is 9 times out of 10 I show up to a "homeowner/ self run flip" that they told me is ready for me as a trade. It is not ready and they will try to dock me threaten me if I don't start on the "not ready" house. Generals organize and build repore with trades they call and trades show up right away. Meanwhile homeowners we push out far just so homeowners "have the time to get ready" otherwise oh show up tomorrow what do you mean were not ready ect. Also you have less value as a client a general contractor can throw me hundreds of homes to do. You probably one maybe even three four a year still nothing. And like all businesses preferential treatment to big client you call same day to have me bid something. I am going to make the time I am available to start your "after his". Another big thing with private flippers, they are less loyal than a general and less reliable pay structure. So your more likely to replace a contractor who went above and beyond because someone else bid the next one a few dollars cheaper. Your more likely to not pay reliably on time ect waiting on bank ect. Fact is that 10-20% is what they save by being a general, they are walmart they don't just take a sony and throw their 20% on. They negotiate with sony say hey we buy millions of these give us a discount. Walmart throws on their 20% and is now charging what sony charges other people NOT more but the same or even less. Generals get better deals with contractors and suppliers then they take total "discounted price" throw on their "extra". And it works out to be about the same.
@Timothy.365
@Timothy.365 8 жыл бұрын
Jerry, I appreciate your info in all of your videos, they have been very informative. in this situation, do you have to have a GC license when working in certain jurisdictions or states? Also, could you let me know what the steps of a rehab you should do in order to have everything orchestrated properly? Thanks for your all your help!
@kyliwolfson8891
@kyliwolfson8891 8 жыл бұрын
Hi Jerry. Do you have any tips on how to hire subcontractors?
@HoldUpStrong
@HoldUpStrong 8 жыл бұрын
Dustin Wood Pay them well
@gmjent5671
@gmjent5671 6 жыл бұрын
A G/C. Performs a lot more than just lining out Subs and securing permits. There is always a lot of on site work that subs don t or won t do. Not to mention a need for on the spot educated command decisions that must be made. Remodeling is always a can of worms you need to know how to deal with every situation in order to keep the ball rolling.Also having a reliable Sub List that took years to put together is worth it's weight in gold.
@moes146
@moes146 8 жыл бұрын
I don't agree. first time flipper here, I had the same idea hire subs learn the work save 20% contracted fee. well since I didn't have experience in some things subs took advantage and did things wrong. cost me double. found a good general contractor to make it right. worth the 20% extra and I'm still learning.
@dridribelo
@dridribelo 6 жыл бұрын
Nice explanation. Thanks
@jabarijones2171
@jabarijones2171 6 жыл бұрын
Not paying a GC would have your trades times schedule all messed up and they really do need an overseer to not mess up
@Indian-girl09
@Indian-girl09 4 жыл бұрын
He has a point I think my first flip I will not use one
@DigitalDezinesCEO
@DigitalDezinesCEO 3 жыл бұрын
LOL good luck.
@janepham5621
@janepham5621 8 жыл бұрын
Where do I take general contractor without college degree?
@tamerasmith8961
@tamerasmith8961 2 жыл бұрын
I am using a GC and she gave me a detailed list. People will give you what you ask for. But the GC was not as trained on the work to be done.
@clapton05
@clapton05 5 жыл бұрын
Awesome tip!knowing your repair cost shows you your profit
@FlippingMastery
@FlippingMastery 5 жыл бұрын
+Vitaly Shevrov 👍
@albarth8747
@albarth8747 7 жыл бұрын
I always itemize everything when giving price on work to the home owner and I always stand by my price I have never at the end of a job said hey its gonna be more. contract is contract written in detail of the scope of the project and with payments attached, it's agreement between contractor and homeowner. if you hire someone they pull that shit, refer to the contract.
@unleashedrider4309
@unleashedrider4309 5 жыл бұрын
Yup, make sure you charge for breakdown. Youre time and experience isnt free. Family owned business for 40 years. This guy is a clueless flipper.
@shawnneboy
@shawnneboy 7 жыл бұрын
Great video look forward to more
@you7uber5
@you7uber5 Жыл бұрын
Old jerry looks younger than young jerry
@KietNguyen-um1pv
@KietNguyen-um1pv 6 жыл бұрын
You need a general contractor to pull a master permit.,an electrical sub contractor can not pull a permit if you need a plumbing , or hvac works.
@HometownWenatchee
@HometownWenatchee 10 ай бұрын
Love it
@Aceofalltrades00
@Aceofalltrades00 5 жыл бұрын
Thanks! I agree! This makes sense. Can you speak to the two scenarios where a flipper wants to learn more how to do the repairs. At what point is it not effective and when is it helpful to their strategy. I ask because im interested in construction. I know it might not work for an older investor/flipper or others different ability levels or a very busy investor/flipper.
@FlippingMastery
@FlippingMastery 5 жыл бұрын
+Los doing the construction is NOT a good of your time. Hire the work out and focus on finding and managing deals. The money is in flipping not labor to do work.
@blueoakconstruction2392
@blueoakconstruction2392 7 жыл бұрын
Can't do that in North Carolina. You have to have a licensed contractor or live in your flip for 2 years then sell it. I'm an open book with my numbers too
@ajx352
@ajx352 6 жыл бұрын
That is so wrong... Anyone can walk into the recorders office, buy a property, and then turn around and sell it at the recorders office the next day.
@patduran1107
@patduran1107 4 жыл бұрын
This would seem to be obvious, but too many would-be flippers want an easy way to riches, without effort and study. Can't be done, thanks for clearly explaining why.
@dennisatwell2210
@dennisatwell2210 6 жыл бұрын
Needs managed?
@juliousdavis8105
@juliousdavis8105 6 жыл бұрын
Hahahahaha, I'm a general contractor and honestly have no clue how you think homeowners shouldn't hire a general contractor. My company can come in and do everything the homeowner wants without bringing in another single company. If they hire each job out to a one trick pony sub they will pay more because each trade will want top dollar. I can cut better deals if I get all work. Also I rarely if ever sub out my work. My crew handles everything. Actually several general contractors are the same way. The type of general contractor you are talking about I consider to be a fake general contractor. I've seen some of those too. They generally have very little construction experience themselves and are just trying to be a middle man so they can collect money on work they didn't do. These type are generally no different than a realtor or car salesman. Their nothing more than a middle man. Secondly, I give the most detailed itemized explanation of work to be done that most homeowners say they have never seen someone so detailed. There is definitely two types of general contractors although the one your talking about should be called a contract contractor because their line of work is just to find companies to take a contract so they can make money off someone else's work. The reason they don't deserve the title of general contractor is because most of these type don't know how to do the work themselves. My company absolutely does everything from ground up. There isn't one trade we don't do. Each of our workers specializes in a particular trade. We all work together to teach each other and learn from each other. . I realize I'm one of very few true general contractors out there but there is definitely others just like me. The main issue I have seen with one trick pony contractors is they only know their trade and don't know why we do certain things for other trades. Usually subs a selfish contractors who will only do what helps them while at the same time screwing the next trade by making something easier for themselves and making it harder on next trade. So homeowners, I would just hire a real general contractor as long as their company is doing the work themselves.
@kimandrews7293
@kimandrews7293 6 жыл бұрын
Home owner or investors the principle is the same. The fact is if you want to manage your own construction job you better have experience. As a GC project manager I've seen lots of owner/investor(what ever you wanna call it) think they can skip the GC and heavily rely on trades to teach them the ropes along the way. Many time I've seen this scenario ending up in a big mess. little(sometime not little) odds and ends gets missed and gets costly and time consuming. It might not be critical on a small house flip but if you are green be prepared to have some extra $$ to learn along the way. It is quite common for subtrade not wanting to deal directly with the client as they got burned or got stuck in one of those project everybody else talks about over a beer. My experience is mostly commercial but I always find it funny when client have a projects and they think they manage it all themselves. Those usually end up in a phone call couple months after....
@ClassicMan33
@ClassicMan33 5 жыл бұрын
julious davis Hilarious. No General Contractor does all the work themselves, unless they have subs who are licensed, and those same subs are their employees. Even then, YOU personally aren’t doing the work. You just sub it out to your employee who is licensed to do electric, HVAC, or plumbing. You are on crack. Some good crack. I have been in the construction industry for years, and have yet to meet a “True GC”, or “Fake GC” who has a license in every trade. 🤣🤣😃 You’d basically be an inspector with the city who thinks he knows every trade. Not sure how those fuckboys are allowed to inspect.
@alwayswell6119
@alwayswell6119 2 жыл бұрын
Thanks Sir, what area is your company in please?
@chrisanthony579
@chrisanthony579 5 жыл бұрын
This guy is just out selling his "plan" and I question his REAL motivation. If you are in the flipping business, I'm most area's of the country, you must have a contractors license since it's not your primary residence. I'm a GC (commercial) and actually believe he makes a great point with "flippers need to learn how to do it" However without someone like a GC teaching you, how are you going to know if you are learning the right thing the correct way? How will you know if you are getting a "good deal"? Regarding subs; it's a fact that my plumbers, electricians, HVAC contactors charge a whole lot more to non general contractors than they do me. It's called the "pain in the butt factor" (about 20- 30%) They know my money is good but they have no idea if a first time customer's money is good. A GC knows when someone is over charging for something and they know not to use a painter than is 30% less than the other painter and why. Plumbers says you need a new water heater, but do you? Do you know when you need permits? I can get a permit in a couple of weeks, how long will it take a new flipper? An Owner (client) and the General contractor relationship is a partnership. The best thing for flippers that do hire GC's is to be active in the process. Be there every day, ask questions, trust each other. Once you been through the process a couple of times, try a smaller project and see how it goes. If you get into trouble, you the have former relationships to fall back on.
@howiboy
@howiboy 9 жыл бұрын
Excellent
@wylian84
@wylian84 5 жыл бұрын
He general contractor will probably get a better rate to where he can mark up though
@munsters2
@munsters2 7 жыл бұрын
What's up with the 2 cameras switching back and forth every few seconds?
@roofawayroofingconstructio1211
@roofawayroofingconstructio1211 8 жыл бұрын
I don't agree. find you a great contractor or a handyman that's affordable and trusted
@lazydadsgarage
@lazydadsgarage 6 жыл бұрын
If the handyman is trustworthy he probably won't be "affordable" unless $60/hour plus is affordable
@MChicago89
@MChicago89 6 жыл бұрын
And i guess that’s you ? 😂😂😂
@bayoustateroofing5733
@bayoustateroofing5733 2 жыл бұрын
You realize you're essentially advising people to be their "own GC" which requires them to spend time managing subs, and that "time is money." Any savings they get in dollars has to be measured with how much time that savings is costing. GCs spend "all their time" managing subs, legally and physically, and carry massive insurance policies. You're advising people to spend more time on a project, expose themselves to more legal liability, and of course the liability of construction in general. The more time you spend bogged down in a project the less you can grow what you're good at it, which is finding and buying properties that are cheap.
@margueritemcnair1784
@margueritemcnair1784 8 жыл бұрын
totally agree
@philippadilla9207
@philippadilla9207 2 жыл бұрын
Suppose the flipper has zero knowledge of what it takes to do a job, who is he going to ask. I am a general contractor and I can assure you that subs will rip the flipper off. Just retired after 50 years of G-CING
@unacceptablecodyberg1402
@unacceptablecodyberg1402 6 жыл бұрын
And watching a little further in the video, the training is for free for a reason.
@FlippingMastery
@FlippingMastery 6 жыл бұрын
Cody Berg why?
@Scoobie382
@Scoobie382 8 жыл бұрын
This is true..
@ahmad-safar
@ahmad-safar 5 жыл бұрын
I love that, totally agree with that
@FlippingMastery
@FlippingMastery 5 жыл бұрын
Don’t read the hate comments from contractors. Lol
@lazydadsgarage
@lazydadsgarage 6 жыл бұрын
Hell yeah the GC won't itemize his prices. Because otherwise you'll try to nickel and dime him. If you really want to know the general costs Google it or go to Homewyse. You'll get a ballpark.
@angelesparza2587
@angelesparza2587 7 жыл бұрын
why don't you just ask the GC for open communication instead of taking months to possible years to pay and learn their craft? Would also like to mention that if your in good ties with a contractor then I'm sure if you asked nicely he can take you under his/her wing and train you to do what he is doing. The only reason why i say is because this is exactly what i am doing.
@danielmn7090
@danielmn7090 5 жыл бұрын
Angel Esparza smart move!
@benjaminramirez9652
@benjaminramirez9652 4 жыл бұрын
Sound like why I have to go jiffy lube change mi oil, if I can do it by myself, well sometimes I did it
@unleashedrider4309
@unleashedrider4309 5 жыл бұрын
Idk what gc you had but if you pay for a break down you'll get one. They are not free. It takes 3 days and a expensive computer program to calculate all cost into individual breakdown. Youre very miss informed. Youre going to the wrong GC if you have to manage a contractor, either you're pain in the ass or the contractor doesn't know what he's doing so find one that does. Easier said thean done but you always get exactly what you pay for. The good one's arent cheap
@Demonte202
@Demonte202 6 жыл бұрын
You just don’t scam people and you do section by section and find out what is price of homes going for and you make materials less then how much homes are going for and you mark up for your cut
@brenden9758
@brenden9758 6 жыл бұрын
If you are going to hire a contractor then why even bother flipping. So many real estate investors are fake.
@FlippingMastery
@FlippingMastery 6 жыл бұрын
Brenden Scott huh? But a house, fix it up, sell it.
@josuesilva286
@josuesilva286 7 жыл бұрын
A general contractor does not need to break everything down if you hire the contractor for his services. And you agree to the bid , your paying For he's service to be completed . You just cheap , not all jobs and situations are the same and prices will vary , and another thing materials are always fluctuating in prices .a good contractor will always have work
@BrotherAbrahamMuhamm
@BrotherAbrahamMuhamm 9 жыл бұрын
Your quotes are the sh*t. Very Nice.
@almightykeepsmegoing9048
@almightykeepsmegoing9048 9 жыл бұрын
jerry I just subscribed to you emailing campaign drip system I would like to get a copy of that repair estimating temp plate for me to immolate and use in my market you are right there are no short cuts in life and if this is what you want you need to be willing to put the work in to get it.
@Thettruthornothing
@Thettruthornothing 6 жыл бұрын
I call bullshit - only an idiot would accept a round number proposal. I work for a GC firm - we brake down our quotes in great details - we are very transparent with project cost and scope. Clients hire our firm because we save them time and money by taking ownership of the project and guiding the project though the labyrinth of details and phases.
@jasonmiddleton3606
@jasonmiddleton3606 6 жыл бұрын
Poor instructional. The majority of the people out there hire a GC because they do not know enough to not know they know enough. A GC is needed to pull the trades together and make the project streamline. There has been numerous examples of people paying more out of pocket because trades are not properly managed.
@kimandrews7293
@kimandrews7293 6 жыл бұрын
Exacly.
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