The Book on Flipping Houses: How to Buy, Rehab, and Resell Residential Properties by J Scott & Josh Dorkin

Author:J Scott & Josh Dorkin [Scott, J]
Language: eng
Format: epub
Publisher: BiggerPockets Publishing
Published: 2016-06-30T04:30:00+00:00

Finding A GC for Pre-Purchase Inspections & Bids

I mentioned above that using a GC to inspect properties and estimate rehab costs was my preferred method of doing pre-purchase estimates. But, not all GCs are created equally, and it’s important that you find a GC who has experience working with investors and will understand that -- as an investor -- your needs are much different than a typical homeowner.

With that said, here are a few thoughts on where you might find a good GC:

▪Ask other investors in your area for recommendations. For the same reasons I mentioned when looking for a buyer’s agent, this should be the first place you go whenever you’re looking for a new team member;

▪Secondly, if you’ve found or know any other great subs, ask them which GCs they’ve worked with in the past they would recommend; good subs like to work with good GCs, so they often have strong opinions on who’s good and who’s not.

▪Hang out at your local Home Depot or Lowe’s, especially early in the morning. Good contractors are buying materials at 6am so they can be on the job by 7am. Start handing out cards and making friends at your local hardware store;

▪If necessary, look for (or post) ads on Craigslist or other websites where you can find local talent. While this is the most hit-or-miss method (you’ll certainly get a lot of response, but not all of it will be quality), it’s a way to start if you have no other good options.

Once you find a bunch of potential GCs, it’s important to do some screening.

Here is the list of questions I recommend you ask the GC before trusting him to help you:

1.Are you Licensed? (While not absolutely necessary for the buying part of the process, a licensed GC is likely more professional and experienced than an unlicensed contractor. When looking for a GC to actually do your rehab work -- that’s another team! -- this will be an absolute requirement.)

2.Where are you located? (If I need someone on short notice, I don’t want someone who has to drive 60 minutes.)

3.How much notice would you generally need to schedule a walk-through of a property I’m considering purchasing to give a rehab estimate? (Shorter is better.)

4.Have you have experience doing rehabs for investors? (Do you understand my business needs and what investor pricing looks like?)

5.How much would you charge to provide a pre-purchase inspection and estimate on rehab costs? (I’m happy to pay, but I want to see what they think they’re worth.)

6.What types of projects would you be qualified to evaluate and which are outside your areas of expertise? Purely cosmetic? Basic Remodeling? Major Rehab? Structural? (You want the right person for the right job and when analyzing properties, you want a GC who is comfortable with at least basic remodeling and hopefully a lot more.)

7.What contracting areas would you be able to estimate material and labor costs for houses I’m considering purchasing? Plumbing, Electrical, Roofing, Carpentry, Exterior, Landscaping, etc? (I don’t want to have to bring more than one guy out to get an estimate.

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