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So why is an investor putting up capital wanting to maximize their return on investment a bad thing?
So when a contractor puts up capital to start a business and wants to maximize profit so his business will survive he needs to adjust his attitude? [email protected]&k off.

Flippers need us more than we need them.
 

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So when a contractor puts up capital to start a business and wants to maximize profit so his business will survive he needs to adjust his attitude? [email protected]&k off.

Flippers need us more than we need them.
Leverage

This guy would be dead in a puddle of his own chit and blood framing on a real crew for a week lol
 

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Discussion Starter · #124 ·
I have spent my entire 45 year career in that area, so if you only came here to piss off a bunch of contractors who have worked their butt off and know exactly what the job market should provide, and the New York real estate investors have no problem paying the wages because they are half of what they are in New York!
You are correct. New Yorkers coming into Connecticut have caused ridicolous inflation in contractor rates due to their overpaying when they believe it is cheap. I am certain this will come to an end a year or so from now and there will be contractors taking aggressive haircuts on what they can charge.
 

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Discussion Starter · #125 ·
Leverage

This guy would be dead in a puddle of his own chit and blood framing on a real crew for a week lol
Investors tend to work on higher-value activities. In the same sense the CEO of Pfizer will hire a contractor because he likely has zero time or interest in the work, so investors are the same.
 

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Investors tend to work on higher-value activities. In the same sense the CEO of Pfizer will hire a contractor because he likely has zero time or interest in the work, so investors are the same.

So? I build multi million dollar homes - all over this site bud. I don't ask my contractors for a discount and most of my subs are top 5% for pricing
 

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Difference is the CEO of Pfizer isn't going to buy the tools to have a high school kid make the medicine. Your trying to go around paying to use bottom feeders, great another scumbag to leach off the industry. If you don't like their price do it yourself if code allows. When you get sued because a unlicensed/uninsured sub gets hurt don't come crying here.

Using licensed, insured, knowledgeable subs takes time to build the team. I've had years my guys made more than I did. Once the team is in place and people know your the only guy to call it's a whole new ball game. There is nothing wrong with flipping real estate but don't try and make your money off the trades. You either offer a service or you don't, that's construction. You wanna be a middle man get into the stock market or commodities.

You might want to check with your insurance agent before letting high school kids do the work.
 

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Flippers need contractors more than contractors need flippers.

Flippers call contractors, contractors don’t call flippers.

Nothing wrong with wanting to maximize profits, but flippers generally want to do it at the expense of others. That’s why anyone who has been around more than six months normally stays away from flippers. Flippers will take advantage of anyone who will let them.

Flippers need to mend their reputation a lot more than contractors do.


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Funny, my buddy ran flips for over 20 years day in and day out. Beautiful work (not high end beautiful). He was a perfectionist. He did it right. The OP wants to go the investor route, but without crews or skills.

Good plan, go for it.
 

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No, but he probably could contract a disease at the local poke and sniff.

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I thought it was cool that he decided to purchase equipment off ebay and hire a local high school student that attends the local trade high school (Prince Tech) as a lower-cost alternative.

The best analogy that comes to mind right now is the days when you could get your local neighborhood kid to cut grass at $50 a lawn whereas professional lawn companies now want contracts and other stipulations that did not exist before.

His foreign contractors seem to go a little farther and not everything is a "change order". The agreement feels like they are happy with making their daily target rate. He purchases all of the material they need everyone is happy.
James, it seems you have been banned even though you said you do contractor work part time... that said, what does any of that have to do with what I asked you? I asked you...

What are you basing "reasonable market rates" off of?

How are you determining what "market rates" are to even determine that you are NOT paying "market rate", let alone "reasonable market rates" (another factor)... If you want to be a flipper, you have to be able to answer that to be even able to ascertain the value in what you are doing...

As a business, there is nothing wrong with maximizing value for anything, but not at the expense of the final product... What that means is, if you can find a qualified individual, who does good work at what you consider "market rates", by all means use them... but there is a reason the phrase "you get what you pay for" exists because someone who is qualified, does good work, and is operating above board, knows their worth and is generally not the least expensive around... those conditions don't generally go hand-in-hand... exceptions to every rule...

Nothing exists in a vacuum... there is a reason the lowest paid contractors are actually the higher risk... simply put, whether operating legitimate or not, if someone price is low, the next questions as a flipper you need to ask are...
1) Are you licensed?​
2) Are you insured? (otherwise you are exposed as an investor) - they should be able to provide you with a Certificate of Insurance... if they have employees, do they have Workmans Comp (Otherwise, again, you are exposed as an investor)​
3) Do they pull permits?​
4) Do they warranty their products and/or service?​
5) Do they charge by the hour or by the project?​
6) How do you handle your schedule? (someone who has multiple jobs going can cause havoc to a flipping schedule)​

There are a host of issues that are important, and just like there are contractors with a good reputation and ones who operate without regard to one, there are the same when it comes to flippers... but keep in mind, the buyers of your flipped property are no different than you... you get what you pay for... the question you have to ask yourself is do you want that to be a good reputation/business model that leads to a premium and bidding wars or one that doesn't take reputation into regard and whose "flips" are advised against (reputations happen either way) by realtors...
 

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I ran across a RE investor this morning. I'm frustrated with his expectations regarding scheduling and at how little he was willing to pay. How do we get these investors to improve their attitudes and unwillingness to pay experienced tradesmen for quality work?
Real Estate investors are notorious cheapskates , i dont bother with estimates for them.
 

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I ran across a RE investor this morning. I'm frustrated with his expectations regarding scheduling and at how little he was willing to pay. How do we get these investors to improve their attitudes and unwillingness to pay experienced tradesmen for quality work?
Simple. Don’t waste you valuable time with that cheap sonofabitch
 

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You mean he wants you to work for $15/hr and give him top priority? And you didn't jump at that? :ROFLMAO:
 

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RE investors are the worst, the pay is awful and they want it done yesterday. You're better off taking a job than doing their work, around these parts anyway.

As far as changing their attitude, make more money on other jobs so you can afford to do their work.😀 I have never met a RE investor that wouldn't sell their first born for the right price.
 
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