# Entrepreneur of the Week - Post number 6 Hello everyone, #oribar This post is dedicated to flips - the first flip,…
# Initiated week Post Number 6
Hello everyone, #oribar
This post is dedicated To flips - The first flip,
The conduct and potholes on the way.
The conduct and potholes on the way.
You've seen a property in a great area
Area where the DOM - Days On Market
The number of days from the date the property was published to the sale)
The number of days from the date the property was published to the sale)
Don't go past the 20 days
The property came to you from Wholesaler (Tough)
The Hulsler gives you excellent Comps (For him)
And gives you a cost estimate for the renovation
Everything looks great !!!
You send professionals (really fast)
So the property doesn't sell to anyone else
Send a realtor to see the property
And of course a contractor to check the property (you haven't worked with it yet)
The contractor has given you a general quote
You are asking for another quote from another contractor
You see it is more expensive
And
Close the deal (with the cheap contractor)
You get a written quote from the contractor,
Handwritten with general details,
You test it by your own standards
Ask how long the project will take
And he answers 12 weeks
You are happy and pleased with his agility
You ask the contractor to send a contract
He claims he has none and asks you to prepare
You prepare and send it
The contractor requires to receive the money in 2 payments
You're doing tough negotiations with him
In the end
Agree to 3 payments
You sign the contract
Pay him first
And he starts working
A week goes by for two weeks
You want to know what's going on
The contractor does not answer
Call the next day and there is an answer
The builder says he started doing a DEMO
And that everything is fine
After another week
You call again
Again no answer
Try for a few days and finally catch it
You ask the contractor
How the project is progressing
He says we have a problem with the property
Employee problem
And he's trying to solve it
Another week goes by
And he's supposed to need more money
Money to finish
You tell him he didn't finish the stage
And therefore do not agree to transfer any more money
He in response says there were problems with the property
What do you mean you ask?
I had to buy more materials
This property literally eats materials!
You don't want less work, do you?
You want the job to end, don't you?
You pay him and ask for a receipt
He commits to transfer but does not
After 6 weeks
You find out through a contact you sent
That the contractor is not in the property
You call
He obviously doesn't answer
He finally answers
You ask:
Why doesn't anyone work at the property?
I was sick this week
I'll continue next week
Don't worry we are within the time limits
You worry but you have nothing to do
A week goes by and you want to see pictures
The contractor sends pictures of things he has done
You understand that the work is not progressing
You have already transferred half of the money to him
And you're in trouble
You talk to him again
And require him to complete the phase
He says there is no way the money will run out
There were other problems with plumbing
I can't go on
Because
The amount of money you sent is over
You get annoyed
The call is disconnected
You call again
The contractor does not answer
After a week contact was made
You ask the contractor to leave
He gets upset and says
You owe me money for my work
You switch between you
Syllables, words and half sentences
You are boiling
The call is disconnected again
You are looking for another contractor
In the meantime, it turns out to be you
The contractor there will work on the property!?!?
You ask how can that be?
He owes us money !!
Confused.
You are interviewing a new contractor
He checks and gives a quote
Higher bid than the first contractor!
You can't understand
How can it be?
The contractor says he must dismantle everything
And start from the beginning
You're in trouble !!
The story goes on and on and you can't figure out how it all happened to you.
How the contractor controlled you and not you in his deal and employment.
How the contractor controlled you and not you in his deal and employment.
When dealing with a local contractor, there are a number of points that can light a warning light:
1. Quote and write quantities of Scope of work - A contractor who does not pass an orderly and detailed quotation can indicate a lack of professionalism.
2. He has no contract to transfer to you - A contractor who does not have a contract to perform works is likely to be unordered, organized and does not control the details well. This behavior impacts on the way he works and behaves later.
3. Number of payments - If the contractor requires a significant amount of 50% at the beginning we can probably draw some (non-sweeping) conclusions:
- It is in some debt (another project, loan, etc.)
- He does not intend to finish the project
- He will not price the project correctly
- He will ask for more money beyond the amount requested
It is important to understand:
We are not a bank and we do not fund any contractor. Let's see !!!
We are not a bank and we do not fund any contractor. Let's see !!!
A contractor who does not know how to weight and project a number of steps,
He is probably a contractor with whom we do not want to work.
4. The contractor did not issue Permit permits for work that would have required expense - This case indicates that the contractor is not thorough, "hafer" and will probably not finish his work.
5. The contractor requests an additional amount of money before completing a phase - Usually, you'll realize that a red light has come on.
In this situation, the contractor probably did not correctly calculate the cost of the project and the various stages (except for a situation where walls were opened and found that there was a rot and not a supporting wall problem or a deterioration of the wall or floor and other things that would require a professional area inspection on your behalf), and therefore requires a sum of money. additional.
In this situation, the contractor probably did not correctly calculate the cost of the project and the various stages (except for a situation where walls were opened and found that there was a rot and not a supporting wall problem or a deterioration of the wall or floor and other things that would require a professional area inspection on your behalf), and therefore requires a sum of money. additional.
6. The contractor does not answer the phones - People are people are people. The fact that contractors are unavailable to you and do not answer the phones regularly can attest to the person's own character, manner and manner of work. Caution!!.
7. You did not receive a Lien release for the amount of money you transferred in the final phase - In this situation, the contractor's hand is on top. He claims he did not receive a sum of money and there to work on the property.
You, you have not received a document that releases you from any liability to the contractor for the amount of money transferred to him.
You, you have not received a document that releases you from any liability to the contractor for the amount of money transferred to him.
So that the post isn't really really long, I'll stop at this point.
I believe the point has been relocated and there is room to improve the nature of the examination and the work vis-à-vis a contractor.
I believe the point has been relocated and there is room to improve the nature of the examination and the work vis-à-vis a contractor.
Most successes !!!
Uri Bar
A very accurate description of how bad contractors knock customers. Each region is different, but would you agree that good contractors will not offer competitive bids for projects with ARV less than $ 230,000? (Of course, the purchase price is an important factor)
Tamir Abutbul Net Professionalism
Your post is beautiful but the conduct is less. Who gets compulsory from holsalers and believes? Who takes the cheapest contractor without asking for licenses and insurance? And anyone who thinks to do Flip himself without being in the renovation country and not taking anyone to supervise? Well at least you learned a good lesson and you write well?
I think we fell with the same one
An accurate post, only those who have experience with flips know how accurate it is. I couldn't have put it better. This is exactly why I always say that real estate is the human capital you have and not the assets you have.
Excellent post and completely reflects reality.
Always always make sure to pay only on the first day of work.
Need to buy materials before starting? No problem. Send a receipt that you bought materials and transfer money that day.
Well done. Pretty
Uri Post is excellent
Thank you very much Ori. For me as a new every word of gold. very important.
Really great post…
The sad thing is that there are entrepreneurs here who were entrepreneurs this week..and come for financing..and tell them where is the detailed offer from the contractor so the answer they get is “will only be after the purchase”…
?
Thanks Uri for a great week!
Really accurate post!
Working with contractors is one of the most important, if not the most important, points to Flip's success
Thank you.
Understandable and accurate… conveys exactly the things they need to pay attention to! Thank you
Ori Bar
Uri cannon post!
Benny Nahmani
Dom below 20 ?!
What's wrong with….
100 them?
Nir Nachum