What Would You Do?

wizendwizard

A business call came in a few minutes ago. Gentleman on the other end announces(name) "I am a starting a business in realty. I am trying to find a remodeling contractor in your area to do remodeling estimates and work on the houses i buy."

He's talking about "flipping" houses. He's isn't from my area The home's are. Want's to contact me when he can set up times with clients to view the home. Wants me to do free estimates. Or only charge a trip fee.

States "I did have another guy doing this, but he charged me $275 per estimate. That was outrageous!!"

What would you do in this situation?

I am asking for honest answers! NOT ADVICE,on how to run my business!

KillerToiletSpider

Talking to him and getting an idea on volume costs you nothing, and you can use the opportunity to find out if he wants quality work done, or if he wants it done with "flip" quality. That will speak volumes about what he is willing to pay for.

__________________
A flush is better than a full house.

Chris Johnson

I don't think the $ 275.00 the other guy was charging is outrageous. The guy sounds cheap.

Chances are drive to the job, review everything, submit a quote first one will take the longest and as you get going with the guy you should be figuring them out fater and faster, but I bet even when the that time comes you are still investing 5-6 hours per project min.

__________________
Chris

wizendwizard

I did tell him my hourly rate for home repair. He didn't flinch at that figure!!
He then asked if i could "estimate" from a "list" he made today. 18 pages of needed work he found in a home review!!

slickshift

I think there was a reason the other guy charged $275 an estimate

Sounds like he's trying to sell fixer-uppers, but w/o fixing them
You provide the "price" to bring it up to non-fixer-upper status

Home buyer gets your estimate "off" the selling price

You're helping him to sell homes
Might lead to work...in theory...I suppose....

That's what it sounds like to me

__________________
Signature Quote

Quote:

Originally Posted by ModernStyle I have never used this crap before and I pray to the paint gods that I never have to use it again, I would rather use Behr

woodmagman

The other guy likely was charging $375.00 and he wants to pay $175.00

Realtors are very good a chipping away at your bottom line......it is what they do!

Brickie

What he said.

__________________
“Ron Paul is one of the outstanding leaders fighting for a stronger national defense. As a former Air Force officer, he knows well the needs of our armed forces, and he always puts them first. We need to keep him fighting for our country.” – Ronald Reagan

Double-A

I would ask him what his expectations are. I can't help him if his expectations are as unrealistic as his business model.

Given that he thinks $275 for a remodeling contractor's advice is "outrageous", I'd be looking to find a good time to hang up.

In other words, I think this guy is an idgit with no experience. I'm not gonna teach him to run his business on my dime.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

ponch37300

If you are slow i would consider giving this guy a shot and see where it leads. Charge him 175 or so like mentioned before and stick a couple of hours into to it. See if it leads to work and what kind. If you get 175 bucks for an estimate you shouldn't be losing much money for your time. It could lead to some good work or it could lead nowhere. Only one way to find out.

wizendwizard

Thanks for the realistic input guy's!!

silvertree

Probably baloney. He calls out of the blue, other guy he uses is too expensive.
Try it once, it's a pretty rare Realtor who lets a contractor make money at the flip level. I have done rehabs and get plenty over calls from real estate agents who want something and usually what they think I should make is a lot less than what I think I should make. Remember, most realtor's don't make $30000.00 a year. But hey! Give it a try. Good luck.

RidgeWalker

Can't count how many times I've been stupid enough to provide remodeling estimates for homes that are being sold, or are on the market. Except for the very very few homes, ( usually worth 500k or more) the sellers and the selling agent is looking to get everything done on the cheap. Which doesn't fit my business model. The buyers who want repair estimates and thier agents are even worse the way HIGH bids to use as a bargening tool at the closing table, then of course they turn around and hire mr. scrub to do the repairs!!!!

So I'd be very wary in this situation and definatly have a solid contract for your services that provides an automatic lien on the property should you not get paid for any service you provide. If he balks at that idea your most likely dealing with some one who's not completely on the up and up.

It's entirely possible the other Joe he was using didn't get paid and now he's looking for his new Joe.

wizendwizard

I recieved and email with attachment of what he is looking for.
Follows!

DECK, PORCH & PATIO
front porch appears to be in good condition
no deck and no patio
DOORS….FRONT
needs to be painted
SIDE DOOR
needs to be painted
GROUND OUSIDE PROPANE TANK
needs to be checked for leaks and excessive rust
water pump in back yard is not connected to city water system
ROOF
is sheeted with cypress boards instead of plywood
LANDSCAPE
trees need cutting over house and landscaping needed
MASTER BEDROOM
needs painting
SECOND BEDROOM
needs painting
FAMILY ROOM (DEN)
carpet needs to be replaced/removed
KITCHEN
floors need cleaning
refrigerator needs cleaning
range needs cleaning
LIVING ROOM
carpet needs to be replaced/removed
needs painting ELECTRICAL
all interior and exterior outlets have two-pronged outlets, need to be grounded
.
EXTERIOR AND INTERIOR PAINT JOB NEEDED

I think he's insane!! Thats 4 different contractors as far as i can tell.

Chris Johnson

He wants to be on a TV show

__________________
Chris

KillerToiletSpider

Not to him it isn't, he is looking for a handyman, not a gc.

__________________
A flush is better than a full house.

tinner666

Yep. Looking for a handyman.

__________________
Frank Slate Roof Repairs, Richmond, Va.

wizendwizard

Well, I do handyman work, but comeon. Thats an entire house rewire.Probably box upgrade as well.

Rusted propane tank..... thats what propane companies are for.

Water pump????? House is on a groundwater well. The town in question doesn't even have town water....

Appliance cleaning..... When did contractors become maids?

Tree pruning and landscaping....call a landscaper....

But, hey. I can always take the job and call in sub's.
How does $42,000 sound for an estimate? lol
GREENCARD refused? DO NOT APPLY!!!

obxdeck

It might work out if you can be garaunteed the work. I had a contract for a beach access walkway from a house that was on the market. Before we could start the house went under contract. The HO told the buyer he had a contract in place and we went ahead and did the work. The new buyer wanted the work done and the price came out of the selling price. It was a win/win for everyone.
I would do this with a realtor only if we had some kind of agreement. Also, don't provide a breakdown of costs. Tell them you'll do the whole list for X amount. That way they can't sub it out as easy. The new buyer should only be worried about the bottom line and getting everything up to par. They probably won't haggle but it could happen.
Another way to do it, would be to actually pull a permit for all the work. The New buyer will be less likely to hire someone else if there is already a permit. I have gotten jobs in the past when we had pulled the permit, the house got sold, and the new HO had us do the job.
Good luck.

RizzoMaryland

Call me crazy...It looks like mostly a paint job with a large electrical aspect and some relatively minor other repairs. Whats the big deal? It doesn't say it needs a new roof. Sounds to me like 2 weeks and you're out of there.

Why charge for an estimate when someone is offering to send multiple jobs your way? We are heading for tough times. IMO unless your refrigerator is as full as can be, meet with the guy for an hour or two. What do you have to lose?

And forget charging for these types of estimates. If the guy is inexperienced, your initial meeting to is to "enlighten" him on the way to do these projects. Build a relationship and his confidence in you and you hold the reigns to potentially multiple jobs in the future.

Whose flipping homes in this market?

__________________
"An idea is salvation by imagination"
Frank LLoyd Wright

wizendwizard

I don't charge for estimates to begin with. I charge a trip and time fee that is to be reimbursed from final cost if they sign with me.

As for who is flipping houses in this market.... i am working on 2 flips right now for other people, but 1 is to be a rental.