Run away FAST......

He's a flipper and don't care about quality or if you go broke trying to keep his job under budget.....

 

He been paying within 1 week of job competions and I don't cut him any deals. He says his company is starting to get too big for his current employee's to complete the jobs. I forgot to mention he keeps them as rentals. He has 4 guys working for him and he now has 40 rentals. He lead guy told me today that the own wants to have his guys in the office dealing with the renters and researching properties to buy next. He told me come Jan 1, evertying will be sub'd out.

It's interesting that Griz gave you input and you ignored it. TNT gave you advise and you responded.
You didn't like what Griz had to say.
You are posting, asking for advice. You need to remember that some people have already seen and possibly been involved in the exact same type of situation you are currently experiencing.
I can tell you, from experience, this guy does not care about quality. He cares about bottom line. Right now, you are meeting his bottom line. He wants you to do more, because you are the right price. When it gets to the point that you realize you aren't charging enough, he will move on to the next guy.
I'm sure he treats you good. He wants you to stick around.

Go ahead and jump in. It's the easiest way to learn a lesson. As far as a whole house is concerned, you already do that. According to what you posted. Kitchen, bath, all that other stuff. Just figure it like that.
Get your payments lined out. Get your down money. Be prepared for him to start adding stuff to the job and expect it to be included.

Good luck.

Seemed like he responded to me.

 

He been paying within 1 week of job competions and I don't cut him any deals. He says his company is starting to get too big for his current employee's to complete the jobs. I forgot to mention he keeps them as rentals. He has 4 guys working for him and he now has 40 rentals. He lead guy told me today that the own wants to have his guys in the office dealing with the renters and researching properties to buy next. He told me come Jan 1, evertying will be sub'd out.

 

yup, and the check is in the mail and i won't.....never mind.....

do not rely on promises.....only on track record....:thumbup:

 

First, step is getting good subs. Sub out portions of the project that you know a trade contractor can get it done faster and better than you.

Second, stick to the plan. Notice I didn't say schedule. Schedules will often need to be adjusted and modified depending on circumstances that arise.

Third, make sure you have enough cash/accounts to purchase the materials needed.

Fourth, make sure you get a deposit and your payouts are paying you ahead and not catching you up.

Fifth, know the first one is going to be a learning experience. You will spend some money on this education, but it's well worth it. You will make it up on the following projects.

Sixth, stick to your rules. I have some hard and steadfast rules, they are different for everyone, but as soon as I break one, it always backfires. For instance, I never order material from Home Depot. It never comes in when they say it will, it's never the right qty and they don't give a chit about you or small a$$ company. They want bigger companies that order tens of thousands a year. That's just my rule. I know plenty of people who love HD and the bid room game. They love their rep and get taken care of. I don't, so I don't. I broke my rule on this latest deck. First time using Timbertech and HD had the best price and the fastest delivery....heheheh...or so I thought.

They figured my sq wrong. I asked for 400sf and they gave me 366. Sure I should have checked it out, but when he told me it was 5 1/2" wide and I found out when it was delivered it's really 5 1/4" I knew I was screwed. But hey, they gave me the three pcs I needed for 35% off. If my guy at Hines had done that, I would have had the 3 sticks on site the next day no charge. But then again, my Hines rep would have never done that.

 

Fourth, make sure you get a deposit and your payouts are paying you ahead and not catching you up.

To me this is probably the most important. Frequent progress payments on a schedule beneficial to you.

 

Thanks TNT, good advise. I was thinking that I'd ask for a % of job total up front to help cover materials and labor.

 

Make sure your payment schedule is based on milestones.

 

It's interesting that Griz gave you input and you ignored it. TNT gave you advise and you responded.
You didn't like what Griz had to say.
You are posting, asking for advice. You need to remember that some people have already seen and possibly been involved in the exact same type of situation you are currently experiencing.
I can tell you, from experience, this guy does not care about quality. He cares about bottom line. Right now, you are meeting his bottom line. He wants you to do more, because you are the right price. When it gets to the point that you realize you aren't charging enough, he will move on to the next guy.
I'm sure he treats you good. He wants you to stick around.

Go ahead and jump in. It's the easiest way to learn a lesson. As far as a whole house is concerned, you already do that. According to what you posted. Kitchen, bath, all that other stuff. Just figure it like that.
Get your payments lined out. Get your down money. Be prepared for him to start adding stuff to the job and expect it to be included.

Good luck.

 

"a guy who by forclosers and hires subs to renovate the houses"

Renovate, or slap crap & go?

Either is OK, fine way to cut your teeth.

A couple renovating their home, here's how to work it out:
Sit down, itemize every conceivable issue, including delays, change orders, unforeseen permitting issues, factor in your profit margin then: add 40& so if total package is X, then X times 1.4 = won't lose your arse (maybe)

Now for the flipper:
Sit down, itemize every conceivable issue, including delays, change orders, unforeseen permitting issues, factor in your profit margin then:
subtract 40% so if total package is X, then X times 0.60 = what you will have to meet to get that guys business (and experience is a wonderful teacher)

Let us know how it works out. Usually, there's a member of CT goes by the name of Tipitop that we refer such questions to, but I think he moved to the Bahamas. Or he's living under an overpass, not sure.

 

Be carefull of having all your eggs in the same basket, relying on one souce for work is not a good idea.

I have never had much luck working for investers it allways turns out bad.

The advise from Griz maybe short and sweet, keep in mind a lot of us have been there and done that, and have pictures.

 

You'd think that building Jim and Sally's dream kitchen could be a nightmare, but working with an investor that is in it all to make money can be much worse. Don't let anyone sense any lack or confidence or experience and you'll be fine.