Why Contractors Hate Fix & Flip Investors
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- เผยแพร่เมื่อ 5 ก.พ. 2022
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As a GC myself I make a ton of money off of fix and flippers but unfortunately its from us repairing their terrible work after they've sold to unsuspecting homeowners.
Should have got a private home inspection
Agreed! And or from hack job yes men that end up having to fix for twice the money!
You're welcome 😆
Absolutely. It shocks me sometimes. Being a plumber I get so many side jobs from thes guys it’s insane. And it’s also borderline criminal.
This. I told my wife don’t even think about dragging me to a “newly remodeled dream home” that was last sold 6 months ago
It’s always the ones with money that turn out to be the cheapest pricks
That's why they have money
@@gsxr600rafii lol no. The rich don’t get rich by taking a microscope to everything. That’s a waste of time when it comes to flipping.
@@gsxr600rafii one of the reasons
The rich didn't get rich spending money on things that don't get the house sold.
Everything is just make-up on a flip house. A thin layer of pretty to hide the ugly.
Wealthy don’t get wealthy blowing off all their money
"take care of me and I'll send you so much work" ....I've heard this a million times and have never gotten a referral from anyone that said that. When I hear this I double my price.
YUP!!!! Can't tell you how many times I heard this. Esp from ultra wealthy clients. I wish I knew better before. I went out of business. :(
Every single time I've heard that it's usually because they want to haggle me on the price.
I laughed when I heard that part. As a gas contractor I hear it all the time. "I've got about 7 more of these for you to bid just help me get this one taken care of on a budget".
I used to play ball. Not anymore.
@@maljalcol People love bragging about the deal they got ... This is so true
Donald trump is notorious in doing that
One tactic that got left out:
I give them a quote, say $3500. They come back and say they got a quote from "some other guy" for $1200.
My response is, "Well, you better jump on that one quick! Heck of a deal! (tosses clipboard).
I do that all the time. Especially when my friends want to hire me lol they get real pissed off when they don’t get things for free
yeah same thing when hiring employees. funny how everyone is leaving a job where they're making $40 an hour in an industry where $17 is standard and"just wants to make what they used to" riiiiight... you should prolly go get that job back
@@djxponent2018 they’re not your friends
"If you're interested in the quote i've offered, then we can move forward, if not then best of luck"
if you encourage any kind of "special treatment" they will do it more and be a never ending headache.
Fire the bad clients.
Im a gunsmith and tell people the same. You know a guy who does it cheaper? Take it to him. Then when they bring it back, I double my original quote becaude now I have to undo the screw up
My last flipper told me after my quote that I wasn't a "good fit" for him. I told him I couldn't have said it any better myself and left.
You sound bitter
Not to mention that people don't care how little you were paid when examining your prior work as reference of your quality as a contractor. Get paid almost nothing to do bare minimum work, and it just looks like you're a garbage contractor.
So he was right?😅
Well done. I hate when people say stuff like that to try to manipulate you. They think you're going to be so desperate for work that you'll bend over backwards to accommodate them. But they are never worth it. They spend little and pay very late.
Next time throttle em.
The worst thing is that on top of this, 95 percent of the local inventory goes to these kinds of people these days because they can pull equity from their other properties to buy upfront in cash or privet loan. This leaves the market full of overpriced homes with shoddy work, and no starter homes for people to put work into they can be proud of
Why can't a regular buyer just use a regular home loan and offer more money to the seller, after all a normal buyer doesn't need to make a 20% profit, pay interest on a short term private money loan, pay 2 or 3 months of property taxes for the time when the flipper pays cash for the house and the flipper sells the house, pay for selling costs, and of course the 20% profit is short term taxable gains so isn't actually 20%. If I sold my home I'd *REALLY* prefer to sell to whoever pays me more money. A regular buyer can always pay me more money as long as I'm willing to wait an additional 3 weeks for the bank loan to close. I don't care if a cash buyer will close in 3 days but at a lower selling price.
@@donaldlee6760 because we don't have more money
@@donaldlee6760 "just offer more money lol" -someone who didn't get it
@@donaldlee6760 because you don’t decide how much money you borrow. The bank looks at all of your financial documents and your financial situation, and your current debt and among other things, and then determines how much money they’re willing to lend you and at what interest rate.
So it’s not really up to you how much you can overbid.
@@donaldlee6760 a flipper would be able to buy the house and also have enough cash on hand to get the repairs done.
A normal buyer would be stretching to scrape together a downpayment and would not have tens of thousands left over to do needed repairs. Even if DIY, remodeling is expensive.
So buyers are turned off by houses that need work. Especially first time buyers without experience in home repairs.
So the flipper can get in. Pay cash for the fixes. Then the new buyer buys a "turnkey" property with debt. His downpayment goes up a bit, but most of the costs of the repairs are put on the mortgage.
I work at a big box and if i had a dollar for everyone that says "i need the cheapest. Its a flip or a rental." Id have 1000s of dollars. Real Estate flippers are todays version of scumbag lawyers
Why , because they are self made and don’t make Min wage for some corporation , maybe change your situation. I’m thinking you’re the scumbag
So should they ask you for the most expensive?
Strange attitude. When I’m buying for my own house, I don’t care if the faucet I like the most is $50 or $500. It’s something I’m going to live with and I want what I want.
But if I’m tossing a new faucet in a $800/month rental that’ll be beat up then I’m going with the cheap Home Depot house brand.
A guy who gets it. I hate flippers. They are the ones destroying our market.
@@codycast wrong way to think about it. If you get a high quality and durable goods in your rental, you won’t have to keep replacing and re doing the same project. So for $300 and not have to look at it again in 10 to 15 years is worth is it than having to place it every renter every year or two. Time is money too. It costs me time to go to the store with a fix it list, it costs me time to replace it after each renter because I went cheap as I could, at a certain age you don’t wanna keep replacing everything.
Living in a house flip from an investor. Everything in here is illegal.
That's why you never buy a flip. It's always lipstick.
@@UnionCameraDude 100%! It amazes me that flipping houses is still a thing with how bad the work they do is, but seems people might be catching on.
Lawsuit that bitch, if they left it out of code then they can be sued for repairs/damage.
I feel like a house should only be allowed to be sold as is if the seller lived in it long enough. Should prevent quick flips without warranty.
the market went all 'no inspections' and they took that to the bank
I get 10-15 letters a month from investors wanting to buy my house, and even more texts. Assuring me they will pay more than anyone else. Which means a contractor would have to cut their rates so the investor could still make their money.
I hate investors. They have ruined the market for people like me who like to buy a fixer and build some sweat equity. I was looking to move closer to work a few years ago and all that was available were flips. Complete garbage flips. Tile work that looked like a kid did it, rta cabinets that looked like they were ready to come off the wall, etc. Investors should be liable for their garbage flips.
Investors aren't the problem, stupid ass buyers who are willing to buy their shitty flipped houses because they have a sign saying "home" on the wall are.
@@bobbygetsbanned6049 that's like saying rapists aren't the problem, women who dress slutty are.
Investors are absolutely the problem.
@@stevelastname4711 Investors are playing a legal game with publicly known rules. Rape is illegal. Not the same. What investors are doing may not seem moral, but they're not doing anything wrong.
@Matt Schmitt so what you're saying is basically, doing something wrong is ok as long as there is no law against it.
Legal or illegal, buying houses to do shit repairs, squeezing profit out of contractors for their own benefit, and then selling those houses for as much money as they can squeeze out of people, is wrong. Doesn't matter if it is legal, it is wrong. The fact that you defend screwing people in a way that isn't yet illegal, says a lot about you and your character. Or lack thereof.
@@stevelastname4711 Correct. You cannot punish someone for hurting your feelings. Right or wrong, it is still legal. That is my point. You can sit and cry all day, but your tears will not change anything. It's capitalism. It's the best system for market fairness out there. You either understand the rules and play the game to make money or you don't understand and will forfeit your benefits to someone else. I'm not a victim. I'm not going to let anyone take advantage of me in any way that I can control. I can control how I interact with the market. I cannot control the market. Neither can you.
When customers asked me to take care them on this one....and they'll take care of me on the next one.... I say take care of ME on this one and I'll take care of YOU on the next one! ..
Nice..
Right ? That promise of next work is such a lie , if I had a penny for every jackass that said they would have a lot of work for me later if be a rich man
That’s when they just laugh it off
@@mattingegneri1077 no.. they need me.. not many stair guys around... Then they realized they f&#@ up. . what blows their mind then they talk to other guys and they're like oh yeah we heard about you. Now we're too busy to do your work
Very nice, I am gonna have to use that from now on thanks!
The people who ACTUALLY have a lot of work don't usually ask for discounts. They need you to come back.
Sometimes the pay a little more because they know your work, the know they've a lot coming up and they'll out price the competition to keep you working for them for as long as needed.......
There's a lot to be said for good workmanship.
But it is a normal and common practice that you get discounts while buying bulk.
If i am a contractor and something cost 1000 to do, i will for sure make you a dscount and make 10 things for 950 each. Because it will take less time than to find 10 separate clients to do at 1000 each.
Just normal practice and common sense to expect some discount if you give "wholesale" work.
@@basedpatriotLT I see your point. If you're replacing five faucets in one day on a property, that might be a little cheaper than if five customers needed a faucet replaced at five houses. Less driving, less work on invoicing, all the same tools, etc. But on a big remodel, there's not a whole lot of that. It's different tasks. You're constantly packing and repacking your car with different tools, constantly running to the store for more supplies. Often times, tasks are added onto the job unexpectedly, which have to be tetris-ed onto the schedule around other customers. The invoice can get really complicated that way, especially for a small business that doesn't have software. If you're hiring subcontractors, finding one that will show up and do the job takes time, and you have to monitor them. Then there's clean-up, which is constant if it's an inhabited space. Can't leave sawdust or nails on the living room floor even for a day. Disposal of trash takes time and money to haul away. All of this is work the customer necessarily doesn't see, but has to be factored into the price. And it can be harder to quote accurately, and under-quoting could hurt.
I'm not saying a big job is BAD or anything. But it takes a lot of organization and adaptability, and I definitely wouldn't say it's less work. It's big enough to be stressful, but not big enough for economies of scale to come into play. The only real benefits I'd say are potentially less driving and lead generation.(But lead generation is not a problem we're having right now. We are in fact drowning in leads.)
Anyway. Bulk discounts are for materials, not people. The amount you'd have to pay me to work 60+ hours a week is MORE per hour, not less. When big companies give discounts on jobs like this, it's for the material and lower administration costs. Not the labor.
@@institches2750 my point was that 10 big remodeling jobs for the same client is easier than same 10 big remodeling jobs for 10 different clients.
Mainly bause it takes extra time to find those other 9 clients, so you have to account for man hours you would spend there. Not to mention getting used to 10 different people and their different styles and quirks.
So at least some small discount makes sense from contractor's side. Not only saves extra hours on finding those other clients but also some headaches of dealing with 10 different people vs 1.
Ps: and also not mentioning the fact that you might not find those 9 other clients, you might only find 8. So you would have 9 different jobs vs 10 jobs for the same one. So this insurance/possibilitu also gets counted in why you would want to make a discount on top of what i said above.
This is very basic business sense. But i understand that not all contractors are most business savvy and think in this way.
@@basedpatriotLT That's true. Though I think it comes into play more when you have a large enough crew and you're taking on more large remodels. For one or two people, a big job basically maxes out capacity. You have to work overtime to keep other customers on the schedule, and you can't alienate them in case your big client starts hiring someone else.
I only work for owner/occupiers. Those who take pride in their homes & pay for good work. Flippers or landlords won't pay for quality.
This part 📌
I just called my landlord for a waterproofing issue. Water sips in from windowsill and into wall. Destroys the paint. He just had the wall scraped and repainted. Didn't fix underlying issue.
You forgot to mention real estate agents who are representing the seller.
@@FutureCommentary1 sounds familiar...
My aunt's upstairs neighbors never used a shower curtain and washed their clothes in the tub. 5 times water came dripping through her ceiling. Landlord just drilled holes to drain and repainted.
She moved out the 6th time it happened.
I pay for quality because I don't want anyone to blame me for something being low quality.
The trick is in the initial consultation. I let them know, up front, that I don't cut corners. I give the the bid for the price I determined and invite them to get another bid if they think it's too high. Never sharpen you pencil for any customer. Ever.
I worked for a guy named Jim for years before I got my license. He would shake the customers hand and say, "Hi, I'm Jim and this is the highest bid your going to get!"
We were always booked out at least a year...
💯
@@yoboo6167 that’s awesome
but you can sharpen your blade...........
your saw blade.
Well thats just stupid.
If you ever hear these words "give me good deal on the first one, remember I have a ton of work for you" turn around and walk away. Doing a large volume of low paid work is a very poor business model for almost every one and it doesn't even make sense on it's face. They want you to maximize their profits by minimizing yours and as a reward you can then lose money into the future while they make bank on every job.
Yeah best case they recommend you, then guess what? They want the same low prices their friend got.
Hey I lose a little on every deal, but I make up for it in volume
Perfectly said
What a terrible attitude. It’s called win/win negotiating. If I have a lot of work from you and you cut me a deal I will continue to use you with no hesitation. If you continue to charge me full price I will constantly be looking for someone else to replace you. That’s how capitalism works and it’s beautiful.
You must be mentally retarded. One of the greatest business models of all times is high-volume low-profit. Anyone who says different is a straight-up conman rip-off artist.
A great example is the street food vendors who has Michelin stars for his Peking Duck. He hasn't raised his price in something like 30 years and he makes millions of dollars a year by selling an insane volume at a low profit.
That is one of many examples how people are able to make the high-volume low-profit business model work.
Low-volume high-profit is the exact definition of a scumbag who will rip you off because they think they're the best thing since sliced bread.
Most contractors and general contractors I know are scumbags and I've even worked under a few of them personally.
Just think about how many of these General Contractors and contractors hire kids out of high school and college with zero experience to join the majority of the team who also has limited to no experience and then turn around and charger customer and insanely high amount for "quality" work when 90% of their labor force has no idea what they're doing
I worked for a guy who flipped houses.
Everything and I mean everything was done as cheap as possible. It was lipstick on a pig 🐷
Reason everyone hates flippers. They destroyed the housing market.
@carlraffen6543 flippers don't exist like they did prior to 2008. Most of the flippers now days are remodelers or renovation guys if you will. Just think, buying a house straight up still costs too much. So it's the renovaters that buy the old damaged houses and they resell this
Pig houses do well during rainy seasons. Maybe it's Maybelline? 🤷♂️
@@carlraffen6543blame the idiots that buy those houses 😂
@@andresm1704 Right. Always blame the victim. Sounds like a true sociopath.
You forgot the I'll take care of you on the next house goes something like " Your competitor was 25 dollars less so we went with them"
For real!
"I know someone who will do it for less."
"Ok, that's a good deal."
*stand in silence*
Or they call 10 people wasting everyone's time and decide not to do the repairs and buy a fucking boat instead.
@@jeffadams4590 they call 10 people to steal their ideas and do the work themselves. Good riddance.
Everyone loses with these people. The contractors aren't paid fairly, the homeowner lives in a rat's nest, and the market gets so unaffordable that realtors end up having less work
Realtors don't care because they know their next % commision is going to be higher because of the inflated market
Not the flippers and lenders tho I'm going to the darkside soon cant beat em join em
@@KINGKUSHORLANDOyou forgot 2008.
If you're not already rolling in $ the system is rigged against you no matter what you do.
Good point.
In the short term, you're right. But you'll see the house back in the market in 3 to 5 years and it goes for much less because the lipstick has worn off. New opportunity
Every time something breaks in a house we own, we try to use it as an opportunity to make the house better. It doesn’t make as much money as doing the fix n flip, but it’s a lot better for the conscience. When my wife handed the buyers our binder full of quotes, receipts, and contractor contact information for everything we did to fix/improve the house over the previous 8 years, we didn’t just close a sale; we made our new neighbors feel confident about their new home and their neighbors.
Owning a house is supposed to be about stewarding it for the long run, not painting over problems.
Maybe for you
Omg so cringe that you're a person with morals and standards so yucky. You should totally be a scumbag because it's funny and money 🤑🤑🤑💰💰
@@jadapinkett1656lol jada, you take every chance to let us know you are a scumbag
Agreed!
I'm an electrician.....I can confirm this is correct.....I like to price myself out of these to be honest....
Don't shackle yourself to resi, and never get into business with landlords or speculators.
So about 8 months ago one of my friends was looking to buy a house and he came across a seemingly good deal. He showed me a few pictures of the place, said there was a open house coming up and he was pretty excited for it. So I did the only logical thing a friend would do, I called up my friends. I'm a carpenter, so I called up an electrician, plumber, roofer, siding and concrete specialists, and two builders. The agent and seller were terrified when me and the boys pulled up in the vans, pulled out hard hats and checked the place from top to bottom. Before we got kicked out, we made it abundantly clear to everyone there that the place wasn't worth half of the asking price and to this day that house is still on the market, same price, same polished turd.
I love it when money-grubbing sons of bitches get fucked over.
Is this a real story? I'm curious to how you guys inspected it thoroughly when the house was finished with drywall and everything.
Lots of comments are saying that home inspectors can't find everything because it's finished.
Good friend
@@jackjack4412 just means how bad the stuff was that you could sae
You did a service to the community, thank you.
I told my real estate agent I didn't want any flips. Still got shown flip houses, had to look at the sale values. A good way to spot a flip is if the house sold within 2 years and is not selling for double.
I think you meant "NOW* selling for double."
What web sites do you use for that information?
@@AimForTheBushes908 I think it verys by state, but in Ohio that price of homes is public record for taxes and zilliow shows what the house last sold for.
Looking up the last listing for the house also let's you see what has been changed or covered.
The houses on either side of me flipped over the last 5 years, the flippers were shitty short term neighbours so any time I saw someone looking at the house I would go outside to do busy work and strike up a conversation so I could warn them about the shitty flip jobs.
Doin' the lord's work
good on you mate
Smart !!!
“I’d like to buy a house that needs a lot of work but also costs as much as it would if it didn’t”
Flipper: “Say no more”
That's why you never waive the right to inspect the house before buying!
When home shopping, every time we'd look at a home that was an obvious flip, I'd ask realtors who sellers were. It would always be some LLC, and we would RUN. Always a hard no for us.
Just get an inspection....
Repeat after me: don't buy a flip
And, Lord forbid, don't buy buy a flop.
How would you know it is a flip?
@@nwabuezeozuzu6370 read the listings and match outside dimensions with the housing authority's codes. There are documents to be found on previously owned property.
Hey a good inspection!
@@nwabuezeozuzu6370 The trick is to buy a house from a human being who actually lived there.
“I’m on a budget on this one.”
Yeah, so am I!
Some years ago when I was in home improvement I went to a house for an exterior. Refurbished by a flipper. Turned out most of the exterior trim was made from the styrofoam that home improvement shows on cable and PBS sometimes push. Cheap and totally not durable. Homeowner leaned a ladder against the house and destroyed it. We turned the job down as we couldn't warranty our work and we didn't want to devote our resources to rebuilding the whole exterior. It looked good at a distance. We also didn't want to deal with the inevitable complaints. God knows what the flippers did on the interior and systems.
How PBS has fallen. I can't imagine PBS from when I was a kid pushing something that environmentally unsound, but their programming now might as well be "The History Channel" level stuff.
Buyer beware that’s all I can say. Flipped home? RUN!!!
Once had a home owner on a flip who wasn't even living on this side of the country ask for me to only paint ONE coat on multi colored 90's Era walls in order to save money. I told him "man it won't look good" his response was "do your best"
😆 at my last job we would occasionally have customers that thought they knew better. My boss would tell me "they decided they only need one coat, make sure they get a good look when you're done, the closest paint store is over on soandso avenue" and would send me with the papers for additional work. Every time they would be so bummed that it didn't cover with one coat and sign the additional work order. Of course that would end up costing them more than if they had listened in the first place.
My Dad who is a landlord for multiple properties always tries to get me to water down paint if he thinks there isn't enough.
And every single time I just need to buy more anyway 😅😅
@Exister as you should. People want quality for cheap and it's absurd. Customers think we wanna stick around on the job longer than we need too?
House flipping is a big part of the reason we have ridiculous housing and rental prices.
"You're looking for a loaf a bread to feed your family? I happen to have bought the last loaf, but you're in luck. I have a sandwich made from cheap ingredients you can buy"
See how capitalism incentivizes the WORST things?
That's a stupid statement. Let's take your analogy, why would that be the last loaf??
Houses aren't a finite commodity, you can always build more. Over 98% of the land of any country is undeveloped.
Maybe look into state bureaucracy and regulation. It took me almost 2 years to get a fucking permit to build my own house and the cost was sky high.
Fix that first and you won't have one last loaf, you would have a hole 🍞 mountain to chose from.
Actually the reason prices are high is because of low rate and easy subsidies loan from government. House flip just part of free market solution to supply available housing to keep the cheap loan going
It’s really not, it’s Wall Street money buying up those homes and mass turning them into rentals. They want you to blame the local guy…
Most flippers aren’t buying deals off the MLS. Off market deals,
Foreclosures, auctions, usually properties a bank wonk even think about mortgaging. If you’ve got the cash go find one yourself!
I'm surprised he didn't ask if you could "forget about a few safety codes" to try and make it cheaper. For that price difference in the bid, probably already did.
The person never has more work at the right price.
If they promise you more work to talk you down.
You either wont get the more work or they will talk you down again.
Yup, dealing with that now being a friend that asked me to help him with work is a sucker and got conned by a past client. He gave her a very lowball price the first time with a promise of more work, just way lowballed her again this time, and again on her second house, and guess what. No new clients. She has plenty of money, but wants free work. I told him we are losing so much money on her that any new client, even if they don't beg us to go down, would still be a loss after factoring in all the time and effort on her. He needs to learn to walk away but I don't think he ever will.
Hes not good at business anyway so I am ending the partnership after this.
But dang, these types of clients will drain you. The level of problems with her are even more numerous than this.
Or he'll keep giving you low paid work if you accept the first low ball
The first thing I tell myself, never buy a flipper home or one in an HOA
Yes! I trust a home with an old ass kitchen. Leave the place alone and charge a decent price instead.
HOAs aren't always that bad. Just look into the specific one before considering. The one I live in doesn't really do anything. They take like $50 a year and everyone knows they have to keep their stuff looking somewhat decent so no one has their property value drop.
I’m in a HOA now and the townhouse was made out of a deck of cards. 🤦🏻♀️
@@ChanEspy That has nothing to do with being in a HOA . Clueless
@@oliverstephens6319 HOAs are trash
When my wife & I were home buying two years ago, one of the homes we were shown was a flip. I hadn’t even walked inside the front door before starting to notice hasty & shoddy work on the exterior & yard. We left after not even 10 minutes. I feel sorry for whoever eventually bought it.
So very true, as a home inspector I have see almost everything. Agents trying to get a "cheap" inspection... or buyers looking for the cheapest home inspection. I do not do cheap inspections and I do not do fast inspections.
Wow. The inspection is the last thing I'd want to skimp on😅
I skipped the home inspection. I was very lucky. However, I had to put a roof on the house after three years I probably could’ve got 10 grand off
Still, I didn’t lose a dime the house is worth more today than it was when I bought it is better to be smart to Lucky
They're trying to hustle some unsuspecting person out of tens of thousands of dollars and they expect you to trust them? Craziness.
I'm in commercial construction and project managers treat subs the same way with the "Take care of me on this one" BS. Every smart sub knows there is plenty of work out there so they just give the price they planned on giving and raise it on the next one cuz they're gonna get the job anyway! 🤣🤣🤣
I flipped for years, I bought my first house at 20. I was doing nice work though, and got tons of requests for my work. I left a lot of money on the table doing things nicely, but it was a springboard to having a residential remodeling company.
I've been doing that for 10 years, no flipping. And I can say that 90% of the people I met over the last 20 years involved in real estate were sketchy creeps that you couldn't trust to hold your dime for 2 minutes.
Agents included, they're mainly greedy people who are susceptible to get rich quick seminars and fell into real estate because they had literally zero marketable skills.
Investors are smarter, but even greedier, and the bulk of them will lie their asses off to save $100 on a $300k flip.
> i was doing nice work though
doubt
@@--..__ we found the skill-less real estate agent folks
You let them hold your dime, they’ll hand you back a penny painted silver
Lol the realtor we bought our house from has been sending us emails for a "build wealth" seminar. Nope.
Lol My takeaway of this. is contractors are making more than flippers...
Did a massive landscaping job for a guy like this years ago. Never worked for a guy like that ever again.
This is why I bought a house that needed all the updating and repairs you could think of. Worst house in the nicest neighborhood. Fixing it up my self. Hopefully it will be my home for the next 20 years and when I sell it to the next person, they may want to change some things, but they will have the peace of mind that everything done is correct and to the best of my abilities with the best materials I can afford. No cheap garbage in my house!
You ARE the cheap garbage in your house
This is what my buddy does, and before everyone flips out, he knows what he's doing. He's not some idiot accountant flipping on the side, the guy could pass the contractor test on the first try.
He flips 4-8 houses a year, and does 80% of the work himself. The only thing he doesn't do is drywall, roofs and tile. Not because he can't, but because he doesn't want to.
He makes mid 6 figures, not including his rentals.
Saying
@@operator0 sounds like he earns it. That's a lot of mental stress and physical labor... Hope he's got a plan when he gets a bit older
@@TheCarpenterUnion He's building up his rental empire. He could stop flipping all-together right now and make a little bit more money than he was at his 9-5 job he had before just off rental income.
I will add one additional comment to this that I havent seen. Everytime I ever did a low ball to fill in the schedule, I would miss out on good work because my resources were tied up doing charity work. These guys want it dirt cheap with a lifetime warranty and 90 day terms to pay. Fire them and get real customers who want a value at a fair price for all.
Last time a homeowner did that to me was 2 yrs ago. I told them to find someone who will do it for that price.... Needless to say, house sits as I left it.
“Why won’t anyone help me fuck over whoever moves into this overpriced and undersupported house?” Lmaoooo
I once got a quote for siding from a pushy local salesman. Turns out all he did was subcontract and take the cream off the top. I found another that was his own man and did it half that price.
I own a demo company and this is probably the truest shit ever.
I met one of these guys at a bar looking for workers to fix his flip. I told him how ridiculous he was and laughed him off his bar stool, he left shortly after that.
What was ridiculous? Was he trying to get people to work for nothing?
So in my area guys are buying houses(60k-120k) adding new paint and updated but cheap appliances(fridges, microwave ,washer, etc.) And come up thinking the house is now worth 250k-400k... No renovations no fixing leaks and all old wiring and plumbing since the city was founded small town too 😂
The guy I paint for does this. Repaints everything, tubs and all. He does put in some new stuff sometimes. Lol
And dummies buy them at ridiculously inflated prices.
Sounds like you KNOW how to at least double your money. Why wouldn't you take advantage of that?
@@mattschmitt9924
Exactly. It's because they're obviously full of crap. A lot of spectators like to pretend they know how the game works but if it was that easy they would be playing it lol.
@@deuscoromat742 Not only are they spectator speculators, but they're almost all broke and lazy. They just whine cuz the mean old boomers won't give them a house. Wah!
The richer they r the less they wanna pay...call a union contractor Im too busy lol
Flip guys want great work at the cheapest price possible. I won't do it.
Tough combo
Let them know they can pick any two. CHEAP, GOOD, AND FAST.
@@c50ge yeah I’ve always heard people say this but to me it would be easy give me good and cheap I can wait lol 😂
Yep better scam a normal home owner!
@@mjerez6029 Normal home owners are broke like you.
Flipping houses should be illegal. They're all crooks who cut every corner they can because they don't have to live with the consequences.
There’s a vast majority DEFINITELY! Lol but not all. And not everyone has the time nor money for all that. Folks with family don’t typically want to fix up a down bad home. They’d rather something live-in ready.
@@jordanzamorano8191 Fair point. Definitely not all, though I was just using a figure of speech. The other issue with flippers is they often grab houses as soon as they're on the market, shrinking the market in the first place. That was my personal experience, anyway, along with living with and ultimately paying for shoddy workmanship.
That's why you never buy a flip house
Good example of what scumbags flipping real estate are like. Flipping is bad for everyone. Yet to find a flipper with ethics or morals, simply greed. Pricing people out.
So true. Stay away from house flippers. There really cheap and cry poor while driving away in there 200,000 plus dollar Mercedes.
I don't like working for realtors because of all the bs
Same, always some bullshit. And they try to act like they’re on your side and blame it on the buyers or sellers
Never worked for a house flipper. After seeing this video, I don't want to
They arent all like that.
@@CharlesWeinraub 90% are tho.
NEVER buy a flipped house! NEVER!
Had popcorn ceiling scraped, walls repaired and painted, and hardwood flooring installed. The quote was high but if you talk to your contractor face to face, you will know if they are a POS or someone that knows doing the job correctly is going to cost you. I’m happy with my contractor. They get repeat business with me!
Needs to be laws and safety requirements that are much much much stricter if you are a career flipper.
Just because there is shoddy work does not mean somebody is getting scammed. By lowering the price there is a net larger amount of people that can buythe home.
@Deus Coromat but would have been cheaper for the final home buyer if they just bought the house and fixed it themselves... flippers just trying to make a quick buck and don't care about quality most of the time. The just become middle men that charge 10k for their services and don't actually connect anyone.
Yup, I stay away from flippers and restoration companies. They plan to profit off your sweat. The profit margins on flipping aren’t big enough for the flipper and the contractor to make money.
Correction; The profit on the amateur flippers isn't big enough for both. The experienced flippers know how much to bid on a house, and they aren't going below a certain figure.
The problem is that the market is flooded with amateur flippers right now. Once the market is a year into its crash, you'll see all those amateurs lose their ass and back out of the business, leaving just the serious guys.
@@operator0 yeah okay... The serious investors are just like the douche in this video. This clip is funny because, it's so spot on... Lol.
@@garycasper2929 No, a lot of the serious flippers have their own guys, on payroll, who refurb their houses. They don't contract out much. The ones who don't have their own guys, either do a lot of the work themselves, or have a set group of contractors they always use. Those contractors continue to do business with them because they get paid a fair wage and have reasonable timelines to hit.
Your problem is the one I described in my OP. There are way too many armatures who low ball bids on houses, then don't have enough room in the profit margin and have to cut corners and jew their contractors down on price. In fact, I would say that the vast majority of flippers are like that right now, but don't worry, they wont be in business very much longer.
@@operator0 yes, very true.
@@garycasper2929i know company that builds new home and also do
restoration/flips. They hire people per hour. It allows them to keep quality up.
That is the standard for any developer “ I got another project if we work out a good deal I might just move you straight over to that one too” then hard bid the next one against 15 companies lol
I got plenty of work in the future for you. I'm going to share you with all of my friends. My family is going to use you for everything. I say let's see how this one goes, if it works out well maybe I can help them and we can continue to do business.
My area can’t even find a decent building contractor. Either you get unexperienced who don’t know what there doing, or someone who wants a $500 job be $5000.
"inexperienced" for sure. They're getting so much work that they can't come back and fix what they did.
I bought a fixer upper and my wife and I did a lot of the work but we had to contract out several things. Most contractors wanted thousands for what I knew would take only a few hours. Later on found a guy who patched up my fence and I had quotes before him for $1500+. This guy does it, I offer him $1,000, and he says nah too much give me $600. Obviously I gave him more than he asked for but God damn most contractors just want to ring you dry I was shocked.
Do them a favor and they'll expect it everytime.
Had a real estate agent flipper do this same thing.
I never took a bid to the guy because he said he had "tons of work for me. "
I always have tons of work....
I could however use a few pounds of money.
Yes
Flippers that haven’t sold are now caught holding the bag.
As a licensed contractor this is true. Give me a good price I can get you ton of work.
We've all heard it a million times.... 🙂
I am frustrated with flippers because I'm in the market to buy a home. "Oh, you put new beige paint on the walls and cream colored carpet in the floors, there's no way I could have thought to do that myself."
They do these cheap cosmetic repairs and expect top dollar. The sad thing is that's often what they get in my area.
It's either that or I find a place that's semi-affordable in my area only to find out the inside is totally fire damaged, or has been occupied by horders and not been updated since the 70's.
You do realise the place from the 70's is the ones the flippers buy, which you yourself say is easy to modernize? So why don't you do it?
@@chrispekel5709 they keep outbidding me. Or come in with cash offers.
@@jonmedina259 they want properties cheap, otherwise they can't make profit. If houses are going for too much they're likely just normal people paying what the market is worth.
Usually the problem will be people who move from another housing market with a lot of money as their house sold a lot there (think Californians moving to Texas) or wealthy internationals who are bringing over their overseas money.
A house in good condition at market value isn't of any interest to a flipper, they can't make profit on it.
I think you just haven't adjusted to the fact houses have risen in your area
and dont get me started on those change orders!
The easiest way to spot a flip.....LVT floors, new paint, all counters are usually granite and the place is empty. If you really want to know about a house you are looking at.....talk to the neighbors or look at Zillow and see if you can see the price history. Flippers WILL NOT fix things correctly.....their job is to make big money quick and that means Band-Aids.
These people helped caused the Meltdown of the late 2000s.
There’s always Homedepot GC, architects and engineers available to pick at a lower rate… 😂🤣😂
This is without a doubt so true. Being a contractor sucks sometimes lol!
Not to mention these guys make about 10 percent commission if they are also the listing agent
A flip investor tried to buy my home for $312,000. I laughed and told him, "Go take a hike!"😂😂
I own and operative a granite company with my dad, I love love love when everyone comes to me asking for a discount because they will bring me “5 kitchens a week!!”
They hate it when I say, I’ll refund you 15% after the first kitchen you bring me
Shit I'd love to hear that from my counter guys. Apparently I need to look elsewhere.
Cutting corners is never right, just screwing over the next guy. These house flippers are terrible 😞
nailed it. Another great scenario is when clients want to upgrade all of their lighting to LED and have no idea what that entails.
“So we want LED to save money on electricity”
“Ok so we will need to replace every fixture in your building. Oh also, by doing that we will need to bring it up to current code requirements”
“Can’t you just put LED bulbs in our existing fixtures?”
“We would love to, but the fixtures are UL listed to function safely with fluorescent bulbs and retrofitting LED lamps with void the UL listing of the fixtures”
“So big deal? Why does that matter?”
“Well if we use incompatible products, your insurance may not pay in the event of a fire or other incident”
“Let’s just do the replacement.”
“That’s very smart choice you have made because you are very smart”
My wifes coworker hasn't stopped calling me to fix all the stuff wrong in their flipped house. Like shower drains with Bluetooth connections
Lmao wtf?
I've been asked to give bids for flippers ....I just simply say you can't afford me...won't even talk to them
Simple, don’t buy a flip. The work may look good but I guarantee there’s stuff behind the cosmetic items that have had corners cut.
I know soooo many people that flip houses, and this is honestly how they all are!
The expression on the greedy flipper character is classic. You nailed it.
This is why I never work for flippers and I wouldn't buy a house from one.
In what world is replacing a popcorn ceiling with 3 inches of plaster the "right way"
All these flippers and DIYers are just giving us job security. 😎
Sounds about freaking right! As a high-end bathroom designer/contractor I thought about subbing myself out to other GC's and investors.But then I saw what kind of work I would be associated with and decided that wasn't the life for me.
- I walked in on a GC painting tile with latex paint and I laughed as was running back out the door.
You know how you fix this BS. As the GC start buying and flipping them. That’s what I did. I have the license and the contacts to make sure shit gets done the right way and it cuts out the third party aka the “investor”
I think I'm in the wrong field bc I feel bad if I don't fix the home up to a standard that I'd want it to be if I had to live in it.
The worst is the guy paid 100k for the house.
And then the plumber gets the same spiel from the contractor who doesn’t pay.
YUP
My brother was late on house payments and he started getting fliers offering to buy it "in current condition, no need to fix it up or clean it". I moved in with him and we are currently fixing it up.
Yep. As a homeowner stuck with a formerly flipped house, just in amazement at the grounded outlets with no ground wire, the 12 gauge wire leaving the circuit breaker becoming 14 guage at the outlet, the visible portion of hot and cold water supply lines in copper connecting to the original galvanized steel pipes in joist spaces spanned by new sheet rock, the vent grills screwed into nothing, the new bathtub drain line connecting the original lead drum trap under the bath tube to the cracked cast iron soil pipe reinforced with band clamps.
All supposedly inspected.
Reality.
I refuse to work for realtors and flippers.
I do lawns and I got started by working for realtors. I prefer them because they always pay me on time and I don’t have to deal with the homeowner. I have only worked for one flipper and he was actually decent to work for. I guess I got lucky.
I have no problem working for realtors, but they have to leave me alone until it’s done
It’s the flippers and the cheap home owners I hate
A real flipper has his own tools, trailers and team. No need for BS, because we keep our team busy.
Totally true. You always grt stuck picking up the mess after the flippers get done
I have had those kinds of promises from contractors before, and they NEVER call a second time.
Are you saying they all don't do this ? Lol but if you knock off $2000 he'll buy Little Caesars pizza
Once had a GC give me paperwork and wanted me to give him all my pricing including profit margins. I gave him a price to do total job. He called and said he still needed my costs and profit margins. I laughed and told him send me his costs and profit margins and I'll send mine. Never heard back. Never seen GC like that before. Crazy.
No you didn't
I fix a lot of these places. Work is getting sloppy af.
I did a ton of painting for what i call slumlords(rental owners). Great ppl and super nice, kept me busy for 5-6 yrs. They finally decided to sell all their properties and retire. They wanted 3 interiors painted back to back to back. 1 small, 2 large. Since i have worked with them so long i gave them about 50% off reg price in quote as a thank you for all the work…they did them themselves at 70 yrs old. They are loaded and still that cheap, i would never consider working with a flipper who are even cheaper.
😂😂😂That's exactly what happened between me and my last contractor.