I’m a foreman for a contractor, This guy is telling the truth, and honestly I’ve seen even worse, I actually have wanted to start my own company just because I’ve witnessed so much and I know I could make a ton of money just by being honest. This guy is credible
I've been a licensed and bonded independent residential remodeling contractor for over twenty-five years now and can vouch for every single one of these from the devil's side, lol, having experienced the pain that comes from not adhering to these rules both as a contractor and a home owner. Kudos for an excellent video.
You're also poor and probably complain about taxation. This is all poor people scarcity stuff. U get what you pay for. Not working for free or cheap. A guy at NASA made 1,000 for tightening a bolt? I the best thing about the best country in the world is that we are still free to charge whatever as ridiculous as if sounds. And I I'm good at it you bet I'm gonna hold you hostage. Pay up or git. That simple. And then the buyer becomes enraged when I refuse to accept the price that they value me at. Seriously? How about I come to your job, perform an inch-by-inch analysis of everything you actually do, and then reassess your value as a human? I'll come to your corporate office or hospital where you work. When I catch you texting your moron associates or looking at photos I'll assume you do this daily. I'll count all your time wasting and formulate an average n of hours you waste and then I'll find other relevant variables in your line of duty and Ultimately decide that I can automate your job, pay you minimum, and keep you as a part timer. In your case, I'll count All the time you waste at Ace hardware looking at tools and supplies and products that are completely irrelevant to the project at hand. Tell me I'm lying I'm an administrator, entrepreneur, market and most recently--builder. Because the morons I was employing at age 17 thought I was only capable of hitting keys and scheduling jobs. Turns out I can work faster and smarter on the computer AND with a drill. I wanna see this guy pushing a wheel barrow for an hour. Let me put you both to work and remind you where you came from. Maybe he didn't come from where we or I came from. I might as well be from Tijuana or Africa. Oh and Im a real estate advisor...same thing. No one understands the hard work involved. Both trades need to.....trade for a week and then go talk smack about one another.
This video has been around a while but wow... Thank you! I am a Bigger Pockets fan but you, Phil are a "Matter of Fact" type! No Bs! I Like This! I am a new investor but have already learned that this is F'D UP and a shady world. I never thought the "Street Me" had to come out in legit business but wow. Thank you, Phil! You have a new fan! Wish I had a mentor like you! Will look for updated video.
Well spoken! Dealing with Contractors is oftentimes a street fight. Watch every video in my playlist on Working with Contractors: ruclips.net/p/PLcPfCvShc59tDh6dRQUncACahekX9VLrg
I'm a first time homeowner and are looking to complete a few projects this year. Thank you for sharing your insight. I'm always worried of getting ripped off.
@@jennifurzoe1302 Or rent a port-a-potty. In hindsight that's what I would have done as it was a two month job and for number ones he just went to the back of the yard and let fly. Disgusting!
Be very worried. It's fatal attraction for real. I don't want to sound negative, but it's almost going to happen at some point. You just have to minimize the amount of times it will happen. You're one person with a small budget. Imagine how much companies lose annually from employees they hire, train, and educate only to be abandoned, stolen from, lied to, and misrepresented. They just have more resources to take the repeated hits. We don't.
I greatly appreciate your enthusiasm for proper dealings with Contractors. All of your points are well taken, and says a lot about your experience. Thousands of people would be better off if they heeded your advice. Trust no one. Get educated, learn, If we all did this properly, many contractors would accept the fact that they need to be more honest. You have armed us with great principles dealing with contractors. I know you have saved many people a great deal of financial losses, fustration and poor workmanship. Thank you Phil.
And insist on seeing actual samples. My sider sent me to other homes he had done to see materials used and then turned around and used different materials on mine!
"I'm not in a hurry." Yes, I made that mistake years ago. Hired a guy end of August and gave him a down payment. He showed up in the middle of October, and only after I psycho-called him, from different phones since he stopped answering when he saw my home number. Live and learn.
I mean he should’ve been clear about the timeframe from the start, so that you weren’t expecting him to start right away, but if you hired him in August, starting in October is REMARKABLY fast, especially right now. Right now, the company I work for (kitchen & bathroom renos) is booked out for months, we’re currently taking deposits for jobs that’ll start in like July-August of next year. The fact that you got a guy out there in less than 2 months is remarkable
@@Dreadlock1227 I don't think he would have come back at all had I not called him from different numbers. He lied to me, and then he did 3/4 of the job, threw down his shovel and departed, never to be seen again. By then I was too tired of it all to pursue him.
Dear Phil, my case. Owner of a single family home in Wayne County, NC. The property incurred a fire mishap solely in the garage (the roofing and walls are gone) to include significant smoke damages in the interior on walls and attic. The insurance agency provided a final report with a cost estimate. Meanwhile, I´m soliciting bids from numerous contractors from the county and state- getting immediate responses. Some bids well exceed the estimated quota from the claims adjuster and others are questionable, but reasonable. Requesting tips from your end. The property is being rented or leased for one year to clients. I´m a US Veteran looking to earn a buck and feed my own. I´m doing my homework diligently, as many other suggested in my circle of trust, way before I hire a contractor and sign my soul in blood. Besides, the house is put and not walking away. Thanks.
I like this man. Very realistic and rational, people tend to be scum. I don't mind it at all that at times in this video you fire your jets: It brings a smile to my face and we are after all talking about a important thing, financially and otherwise. Keep doing the good work!
I'm a remodeling contractor. I hear a lot of horror stories like this. I know there is something being left out of the story. That something is they hired the cheapest bidder or the first person who agreed to come out. Take the time to develop a relationship with an honest contractor like me. Don't be in such a huge now, now, now rush that you can't wait for your regular honest contractor to get an opening in his schedule to get to your project. Don't expect people to work for free.
dont bid what you cant do lot of people put up a front to get that job they havent had a job that big before and are winging it out of 5 guys i hired to admin my server the lowballers cost me $1000.00 and 6 months aggrivation the $125.00 hr guy fixed all there screw ups and got my never gonna happen wish list done in under 30 min
Called 70 contractors...70 for a remodel job on a vacant house. They either didn't call back, didn't show up, or had excuses as to why they couldn't show up.
I am a contractor, and I don't walk on water, sometimes things just do not go as planed. One thing I will say is the people who are the angriest at me all fall into one category, and that is the people i won't work for. Someone will get a good recommendation from a previous client of mine. They will call me to come over and give them an estimate. If I sense any attitude like Phil's or if they lack normal sense of fair play or flexibility, i just tell them I am not interested and thank them for their time, and go stright for the door. A good contractor dosen't need work, what they are looking for is reasonable people who have a sense of fairness. When I go for an estimate the main thing I am doing is evaluating the client to see how they might react if something dosen't go right, and trust me even the very best contractors run into problems.
Another reason why people just let their home repairs go undone. Too much stress and anxiety trying to find an honorable contractor that will do the work correctly, at a reasonable cost, without ripping you off!
This is SUCH good info. I'm sure the issues are magnified at the commercial and higher-dollar residential level, but even on small household jobs like fencing and irrigating and painting there is something to be learned.
I'm a contractor just starting out that has worked for years for a very honest contractor. your video has given me a few tips on how to continue to do honest labor, because our marketing has mostly been word of mouth and usually that word is "they're honest". I want to keep this reputation while starting out on my own and your video has given me tips on staying that way. I was irked, to be honest, because 99% percent of these "scams" we have never done, and the ones we have were not out of ill intent or was offered by the customer. And yes i am offended by many of your "they" statements but at the same time I see the others that we have to come in and finish the job behind. so as crass as your video is, your video has helped me to stay and honest contractor. thank you.
So what I got from this is: 1. 3 bids minimum (make them compete) 2. verify materials and labor costs are justified 3. only pay upfront costs that make sense but never over 20% project cost 4. Tell the contractor you expect it done in a timely matter or simply put industry standard. 5. I choose materials while also taking advice consideration from experts. 6. Always check and see who is doing the work. 7. If its not in the contract it either better be before the project starts or I aint paying it.
I was a contractor for almost 50 years and I wish my customers had seen your video. The contract works both ways and I can only guess at what some of my customers must have been imagining. BTW I never advertised my services, it was all word of mouth - be square with people and you'll never lack for work.
You identified the biggest problem. Homeowners have a habit of imagining that contractors can read minds. Make a detailed list of your requirements and make it part of the contract.
@@facehairteeth That's a good idea but they still quite frequently screw it up. The upside is that if you have everything in writing they either have to correct the problem on their dime or you can fire them and they really don't have a leg to stand on to sue you for any work not done to spec. So you just pay them for what they did correctly and tell them to hit the road on the rest. Most of the time though they are honest enough to just fix the problem in large part because they know their guy screwed up and they don't want a small problem to become a big PR nightmare.
I agree with everything you have said. Specially get every detail in writing. You can tell right off the bat if a contractor doesn’t want to give a detailed list of “everything”. They are trying to rip you off. As far as estimates go, get a dozen! You really need to do your home work about proper workmanship for the application and the right building materials. Contractors don’t like when you point out building materials that have to be installed in a certain way or warranty will be void for that product. The last line in my contracts states” process will be videotaped”. If that doesn’t scare off the crooks nothing will! The great ones will ask for a copy of that tape to use for promoting their business. Don’t just hand it over, bargain with it, it was your time and effort. Their times worth money and so is yours.
You want the customers picking out materials? Thats insane for me an electrical contractor, no way I want the customer picking materials, even if I make no money on it. They pick out the wrong/inferior stuff
Wow It's is truly sad how easily contractors rip people off with a straight face, I know 2 brothers who has been in the business for approximately 30 years and about a week ago I asked the one a question about contractors and was disappointed to hear that he mentioned that they are all a bunch of thieves, all of them. This was truly disappointing to hear, I believe them because I have known them for quite some time now. I do also believe that not all contractors can be this evil, but the honest ones are not easy to find, this has to be true.
Great points Phil! I would add as a contractor, never tell your contractor that you aren't or don't want to get permits for your renovation. You will get a cheaper quote but it won't be to code and it will be rushed, poor quality work that is more likely to fail.
I appreciate you making this video! There are not many people like you out there who tells the full truth regarding this stuff. Thank you brother, again I appreciate it.
Phil, I hope you're still making videos and involved in real estate investing. I am so grateful that I came across your channel when I was Googling a question about contractor fees and how they set them. I was relieved to know that we didn't accidentally hire a bad apple contractor -- they practically ALL ARE. And when he revealed to us that he has a criminal record, I was not at all surprised. For years I've been around in-laws, neighbors, workers, employees and contractors who were alcoholic / drug addicts / convicts / codependent / mentally ill / struggling financially. I started wondering why we were attracting that negative energy -- but it's everywhere you look!!!! So for this video alone, I love your fire. Thank you. I actually had a cynical but eye-opening laugh when you mentioned Tennessee. The contractors so far show up between 10 and 11 and leave by 2:30 or 3:00. And even though the contract says "balance due at completion", they're always trying to ask for a draw. I love your idea that they'll start losing money once they pass the deadline. That makes all the sense in the world. So thank you, love.
Watch my entire playlist on working with contractors: ruclips.net/p/PLcPfCvShc59tDh6dRQUncACahekX9VLrg Most contractors will screw you if they can. But armed with what I teach you on the subject, you can avoid getting screwed.
I have fixed and flipped over 20 properties and here are some of my the best ways I have found contractors. Ask other contractors - they pay attention to each others work and they know who does quality work. Home Depot - Call me crazy but I sit at home depot and eat a hot dog and look for the following: 1. Contractor with truck - Small projects you don't need a GC unless you a beginner. 2. The way they carry themselves. A man that cares about his appearance will usually care about his work. 3. Mannerisms - Does he appear to be organized? Is his truck a mess? Does he talk over you? 4. Beware of contractors who can do everything. When they say I can do everything, I reply with if you had to choose one specialty what would it be. My favorite way to hire a contractor is to stop by when I see guys working and look at their work. Sometimes they will refer you to their boss and I reply with I am looking for guys who want to do some side work. Think about it, why pay the boss when he is not the one doing the work. How to pay contractor? Be safe and smart - Pay for material up front only! Weekly pay based on line items completed. Contractors have families and need to eat. Be fair! Never pay early unless you built trust with your contractor because this is a easy way to get screwed. Offer incentive if he finishes before deadline! Why not you both win and he will be eager to work your next project. Request invoices, pictures and video weekly before payment. They create your timeline for you by the week. If something not complete or you have a disagreement you have proof that they created. Penalty for for not finishing on time. $100 per day for each day past agreed upon completion date. Invoices should be so detailed that it includes door knobs. Penalty for for not finishing on time. $100 per day for each day past agreed upon completion date.
"WHY PAY THE BOSS" I like that, in other words you think you are smart right??? WRONG, because the boss owns the company that gives you a warranty on that job, the Boss is the one speaking English so you wont get frustrated trying to get your point across, good luck trying to get those workers back to do a touch up, because they will be busy with the work the Boss gives them, and you will be waiting long time , AND MOST IMPORTANTLY IF SOMETHING BAD HAPPENS (AND I WISH IT DOES, SO YOU LEARN A LESSON) , WHICH INSURANCE ARE YOU GONNA MAKE A CLAIM ON ???? In other words : YOU ARE AN IDIOT
VERY BAD ADVISE ON ONE PART = The boss is the one who carries the insurance! Not to mention, that's called moonlighting and most employees sign an employment agreement stating that it is illegal for them to moonlight. Also, here in South Dakota that is also soliciting and you can be charged a crime for trying to convince my employees to perform work on the side that is unregulated, uninsured, and performed without a permit. Because the boss is the one who can pull a permit.
Great video! The amount of problems I have had with contractors; just rehabilitating one house, could fill a small book. Here’s one for you: Two identical Steele entry doors: one exterior, one interior, each with a different swing - one swings in right, the other swings in to the left - purchased in December from a big box store- not installed correctly until September of the next year: issues, wrong doors, door installed backwards (redone), one door of one type and color, one door of another type and color, wrong hardware packages, wrong Caming-color: black not Puter around the glass, wrong hardware color: mismatched Satin Nickel and one Black, changed sub contractors: three times, and so on. It took a complaint to the Attorney General of Connecticut to get five contractors on my porch and the job finished correctly; the same day; nine months later 😳: No BS! One door still has a quarter inch gap on one side to this day incidentally. What a frickin nightmare! I used to refer to my house in those days as “The Nightmare on Noble Street.” This one issue with the doors set my schedule for total rehabilitation project(s) completion back by at least a year; @ least. I won’t even get into the stress and demotivating factors involved. It took about five situations like this one to change the way I deal with contractors and now each transaction is a lot smoother, but still fraught with risk!. A Big thanks goes out to Richard Blumenthal and his staff for their help. The fact that I even needed to get the Attorney General’s help is the point; cautionary tales abound and people need to be educated about the risks of dealing with contractors; moreover, how to develop back up plans to work around problems that arise around the processes inherent in rehabilitation of properties. After being screwed over a bunch, I wish I had had a mentor along the way; perhaps then I would have seen a video like this one to learn to know how to negotiate around the pitfalls in the contracting process. Now, I almost always exclusively contract with Brick&Mortar Business Owners who have a verifiable record of stellar performance, and a business location that is more than a pick-up truck! It costs a little more, but it’s worth it. Also, substance abuse issues abound amongst this skilled labor group: I sometimes make a point to mention that my property is a Drug and Alcohol Free Zone: meaning there is a Zero Tolerance Policy that includes a clause that verifiable use of substances or intoxication on my property = non-payment! 12-Step Recovery Clubs can be a great place to find Clean and Sober Contractors looking for work by the way. There are many contractors out there who do amazing work that I couldn’t; when the contracting process goes well; smoothly - amazing property transformations can occur. My Nightmare on Noble Street is now a Cozy New England Cottage Beach House by the Sea... but achieving this state of transformation of the house from the former mess it was - was not easy; but, the lessons learned - are definitely invaluable! Thank you Phil👍🏻. RB/CT
Very valid points. Definitely get everything in writing, get before and after photos as well. This not only protects the consumer but it also protects the contractors as well. We try to educate our customers about the mistakes of going through those fly by night contractors and how to find someone or a company who will do a good job and who will stand by their work. Good Advice man! Keep it up!
even in writing, they don't care. prepare as if you are going to court will help though. they still don't care. even if you win, they will take off and never pay.
LMAO! I'm loving your passion Phil!!!! I'm just Realtor right now but I'm working towards becoming an investor. The NO BULLSHIT lessons like this one are GREATLY appreciated and I'm very much looking forward to learning more from you ; )
This happened to my boyfriend. He gave a contractor $2000 up front to get started on a job fixing old doors in our house and we never could get ahold of him again. He took the money and disappeared. At first when i found out boyfriend gave the guy money i though “oh Jeez” i would never do that, but my boyfriend is such an honest person, he is clueless about how some people can be.
Thank you, as we head into a kitchen remodel contract. Took awhile to finally select the best GC but worth the time, $ & efforts. Your lessons here arrived at the right time!
Great job. Just want to add. Be there as much as possible. Almost every time I contract a job... a contractor find a "different" surprisingly easier or cheap way.
Thank you, Phil! I have made most of these mistakes. Still have a contractor who did one job well so I gave him money up front for a second job and he skipped. Wish I had you to do my negotiating for me. Be safe and God bless.
For the ladies, in my experience as a woman, the most critical thing I do is educate myself. I not only read reviews and ask neighbors about quality contractors (Google, Nextdoor, etc), I also educate myself on the details of the project. When I do that, I can have an intelligent conversation with the contractor by understanding the language and realistic scope of the project. SOME contractors will assume being female, you are not knowledgeable and will attempt to financially take advantage of you. If you are able to ask specific questions (and comprehend), you can avoid a lot of headaches. And sometimes you realize you're actually smart enough to install that toilet yourself! 💪🚽😁 I'll also add that I haven't had a bad experience with any contractor I used, and I feel certain it's because I invested the time to research who is doing the work and how to accomplish the final product. Good luck on your future endeavors!
I believe it's something within me that I continously get screwed by these contractors. I did my research and asked all the questions and hired a contractors that I feel comfortable to do the and the work ended up sloppy the refused to fix minor things because they already passed the inspection😫😫
As a single female, living alone, the tricky thing for me has been that if I do research to try to be knowledgeable enough to simply explain the issue, it seems to put some men off. Even if it’s something really simple. The last time I called someone from my heating company I said to the guy, “Last time I had this issue with my boiler it was because the pressuretrol pigtail was clogged with sludge, which led to other problems.” He then had me run the shower with the hot water on and proceeded to explain to me that water, when hot, will make steam. 🤪 My radiators were going off heat in the summer whenever the boiler kicked on when I showered. The heat was off. It was 90 outside. He left and the next day I had to call the company back and request a different technician. In the future I’ll find some costume wedding ring and say “We” and maybe rent a fake husband for the day. And this was just an inconvenience lol. I’ve grown much smarter with actual contractor situations, but still always feel like I’m probably being “pink taxed.”
Never seen this guy before this video but definitely subscribed. He is hella intense and I love it. More people should be this passionate about what they do and share
I appreciate that you get heated over someone trying to take advantage of others. It shows that you care, and the world needs more people who care about not letting other take advantage of others. Thank you!
Excellent video, looking forward when buying my next new home to be able to keep one step in front of the builder's run around and being able to figure out if he is BS ing me.
As a plastering contractor i agree 100% with this guy , years ago an elderly couple hired a GC from their church to do a 20k job but charged them 59k i was hired to stucco two columns by the crooked GC I charged him 600 he charged home owner 3500 just for what i did homwoner asked me what i charged long story short i helped the old man getting GC charged with crime
Right? other day watched a youtube video where some sistas were twerking in church to the tune of ''oh happy day'' lol. i thought to myself man! this are the last days.
Thanks Phil for sharing basic but important information. I'm working on my first investment property and have yet been able to find the right contractors for the job. Hopefully learning from you will assist me thanks!
Hi Phil, I have been stuck with a contractor who was supposed to complete construction in 6 months. Its over 6 months now and I don't see it getting completed. I have had a lot of heated debates but no use. My house is at a stage where I don't see any other contractor taking up the job. Even if they do they will charge a lot more. Please advice what should I do?
Ironically, points 2,3,5, and 7 are also frequent ways that unscrupulous homeowners screw well-intentioned contractors. A reputable contractor will always design a contract that protects contractor and client. He will set his own parameters for timely completion and detail what he must complete before each draw, and leave little for the client to necessarily negotiate. Material cost is a touchy subject. A reputable contractor will protect himself with a reasonable mark-up or contingency, especially with "prospect" clients...that is, the ones who "aren't in a hurry" or "just want to see what it costs first." People who knee-jerk select the lowest bid from someone who didn't properly cushion their estimate frequently find themselves with a contractor who nags for more money or walks off with the job unfinished. How much are you saving after you pay the contractor you should have selected the first time to redo and finish what Discount Daryl and Slip-shot Sam walked off and left?
Agreed is this guy even a fucking contractor??? If the materials are 550... and they are charging you 850 its because of material procurement costs, deliveries, labor to gather said materials and time spend getting materials. This guy is a clown
Phil !!!!! I got 5 minutes in, skipped most of the intro, and jumped right in at 3:04 loved every bit so far. I had to IMMEDIATELY stop the video, laugh and click the thumbs-up button and subscribe after you said "It's a lot harder to verify labor...You have to sit there and CLOCK EM'" Dude I can't wait to see the rest of the video.
I get all kinds of hate from contractors who watch this video. But it’s the truth. This pool contractor just got sentenced to 30 years for screwing homeowners: www.tcpalm.com/story/news/crime/indian-river-county/2022/08/29/amore-pools-contractor-brian-washburn-ordered-prison-decades/7930895001/
As a single woman and business owner I can happily say I have always had good deals... because I stuck with all these rules all these years! Always at least 3-4 bids! It’s not just the price either. You want to pick someone you LIKE. I like buying my own materials (like faucets and bathroom cabinet) and getting a fair estimate up front for installation. Also, I want to see a nice folder of photos of previous jobs. Also, before hiring someone for a very big job, hire them for a small job and see how good it turns out. This will give you a preview of coming attractions. Ask a lot of questions, that way they are more careful not to rob a well informed client. If they out talk you or get arrogant or defensive, they will be hard to work with. Don’t be afraid to oversee the work. Some of these guys don’t have a lot going on in the Common Sense department. If they pull a no show, don’t bother calling them back. Chasing people to work is no way to do business. If they don’t respect your time or have integrity, don’t enable them because they will keep being that way. Make sure you get a Playbill of how the progress of work is to be done and always ask how long it takes to do it. Anyways, all these things matter when living in a world where finding the right contractor is like being a boss hiring an employee. What makes you the boss? Your wallet.
12 Years in the Foreclosure/Preservation/Asset Management business- and everything is SO TRUE! Live and learn- but it's much better to KNOW and learn before you lose out on TONS! Thanks Phil!
Worked with contractors on 2 home remodel projects. In my experience here is what they start with: " CASH " . They all ask for cash, even on bigger jobs 30k or more. Than you eliminate the cash folk and get " reputable " company where the person that gives the estimation does just that and is always nice, professional and knowledgeable but the workers they send on the job are cheap labor, lack experience, and I had to watch every step they take and waste time also because they cut corners. Examples here: cut footing on the home instead of drilling, cut through supporting wall when placing ductwork, incorrectly placing/ sealing vents on the roof causing leaks in the bathroom, etc, etc. I heard them brag about giving people ridiculously high estimates because they are so busy, and being surprised that home owners accepted.
NEVER pay cash unless it is simple service call. Your money should be traceable to prevent liens. ALWAYS get lien waivers from your contractors subs and vendors. You can get partials through a certain date of final unconditional at the end of the project.
Phil, I really appreciate your taking the time and energy and thought that you put into the making of this video. It is obvious that you are experienced in REI, and this is VERY HELPFUL to us newbies. Thanks Again
Contractors get drunk and comment on you tube videos that make them feel wrongfully accused and locked into one big group of thieves and cheaters. It's like saying every man out after dark is going to try and steal your wallet. If I hadn't been drinking I wouldn't even comment. I shouldn't waste my time.
Phil, you are spot on with this video. This is Dan in Donelson. I was just like you. Real nice guy, trusted everybody... Then the first Contractor I hired to take the fallen tree off my house, He tried to screw me.... He told me that I don't have to pay a penny, and he will deal with the insurance company directly, no need to worry. Then, a month later he sends an invoice for over $14,000!!! WHAT! This was a 3k-5k job tops. SO, he put a lien on my property, and I got a lawyer, then he pulled the lien off after hearing from my lawyer. What a Total Douchebag! Never trust ANY Contractor. I wish I saw this video before the tree fell on my house... Thanks Phil!
I know a finish carpenter, two year waiting list for his cabinets. he goes to a job and the guy said do you have insurance? no, why is your truck so old? if you want a new truck rent one for me. what about your?..the finish guy said "thats all alright I got a two year wait and some one is moving up on the list...you need a guy with a better truck and all, I just do good work.
Unfortunately people are all about appearing successful. I'm female, was a licensed GC in CA from 2000 to 2009. Had to cover a sleeve tattoo of flowers as to not appear thuggish to my potential clients. Was told my Suburban wasn't nice enough to be parked in front of their home, that I should buy a new truck. Because then I'll look successful. Or treated like crap on the job, customers thinking they are so much better than I am. I held my tongue many times when I wanted to tell them that my income was most likely equally impressive, but I wasn't living to be house poor.
@@doctormcgoveran2194 In each case I simply walked away. I never compromised my self worth or my values. I had plenty of customers impressed with the work I did, that if I got slow, they would surely have something for me to do.
Except for the scenario where they were snobs. I just quietly finished work, and felt more pride in myself for another job well done. But I refused any job offers after. I am not doing this anymore. Too much for me. I'm doing some custom woodwork now. Just learning how to build furniture.
@@rebeccacaraska4112 I know what you mean. I nmet a hosue bulider one time I was htich hikeing and picked me up.I said "who do you hate to build a hosue for make it ugly who lesbians gay men minorites tell me straight up who. he said andy body who can pay for it. If they get moved in the house at all they stop paying and you never get your money, If a guy ahd to work for the money they invite you over to the first dinner and show it off to all their friends. sad to think everybdoy sho can afford a house got rich stiffing some one.LOL
As a contractor myself I agree with most of Phil's points except I will not do certain jobs with customer supplied materials. Yes, if you haggle with a supplier they will discount for bulk orders but you better believe they're going to go out of their way to get rid of the worst materials they have on the shelves. They generally wont do that with us because we deal with them daily. I get all my work from referrals and I feel that is the best way to find a contractor but ALWAYS do your research if you've never used them before!
i do light plumbing work now and then for investors...faucets. toilets etc.. they always want me to buy the cheap home depot glacier bay junk and i say ok but not gonna warranty anything..3 months later i am back fixing a leak and charging them a service call which is usually double what the good moen or delta product would have cost in the first place.
I disagree. Material Suppliers aren't nearly as loyal to contractors as contractors may think (or try to convince clients). I can walk into any supplier and get a contractor's account set up with them quickly and get the same discount as a contractor. But contractors are pros at convincing people that they can get a better discount than us non-contractors can. In the real world, I have seen where it is simply not true. Plus, material suppliers really like me because I always pay on time and/or upfront; unlike some contractors that fall behind on paying their materials tab
Phil Pustejovsky I think what Bucko is saying that he frequents the supplier much more than someone flipping 3 homes a year(not you, your audience), hence has a more personal relationship .
What you're saying Phil is that your relationship with supply houses is better than the contractors, because of your longevity with them, and you pay cash up front. Makes sense, of course. Nothing wrong with that. Why not mentor contractors as well? Shitty contractors are everywhere. They need a course too. I think what I'm getting at is that stop bashing us low-lifes that can't do biz 101 and turn us into super-stars for rehabs! LOL! Just a thought man!
Happened to my relative, he basically made his accountant rich because he trusted him while he himself couldn't figure out why his company had all this business but he wasn't making any money. Never ever trust people with your company finances, you will be stolen from.
This was so helpful. Thankyou so much Phil . My husband just died a month ago and i found out my roof is leaking. There's a 4 by 4 brown spot on my ceiling. It was just 2 by 2 and i thought it was just dirt maybe from my airconditioner vent. But this morning after a 3 day nonstop rain, it grew over night so i have to hurry on this. So i will do what you say about hiring contractors.Take care Phil . Your a good man. Carrie
I am currently in my first quick turn which is taking 3x as long as expected because I made all of these mistakes except #3, but I ended up getting screwed badly by telling them my budget...won't be making any of these mistakes again! Thanks Phil!
Great video with great info! Question: I am planning to change all my floors in the house so planning to use one of those flooring companies. What should I be aware of? Should I treat them just like a contractor? I actually was thinking of using individual companies for different cosmetic things around the house, such as, changing kitchen cabinets and replacing countertops, like going to Home Depot or Lowe’s or one of those big companies. What is your opinion on that? Also need a plumber. Thank you for your reply or the audience replies. Thank you!
Hiring a decent flooring contractor is one of the easiest contractors to deal with. Use Angie's List, HomeAdvisor, or other services to check the reviews. The big concern with flooring is base boards / trim. They usually avoid that and then you are stuck with no baseboards.
I have been screwed over so many times by contractors I had contractors remove and replace drywall and just a few months later I got a call from my rental tenants that the drywall is starting to pop of the wall because they didn’t use screw they used nails And also I had the contractors sand and re-stain the hardwood floors in my rental property and they left the floors bumpy and wave and a few parts of the floor had puddles of the clear coat that had hardened before they even smoothed it out and when I got back with them to fix the problems they made ,they said that had never restored floors whereas in there listening it said they did
Bay Whedon Goes with the territory, when I hear rental property. Owners are usually gaming for the lowest bid, knowing full well the tenant won’t be gentle with their property.
Making every contractor sound like money grabbing assholes that just want to screw you. That’s whole heartedly untrue and uneducated. Maybe that’s the kind of contractors you attract because there isn’t enough money in the world to get reputable contractor will work with you. Why is is bad that a contractor wants to be profitable? A good contractor knows his numbers and knows what he has to charge to make sure the lights stay on, he gets paid and his guys are taken care of. If you were to acquire a property for $150,000 but it’s value was $300,000 would you list and sell it at $155,000?
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Every successful real estate investor has a mentor. Get your mentor here: www.freedommentor.com/apprentice
How do you get tuff with your GC?
I expect a logical response, countering my replies to @bobvogel6844
I’m a foreman for a contractor,
This guy is telling the truth, and honestly I’ve seen even worse,
I actually have wanted to start my own company just because I’ve witnessed so much and I know I could make a ton of money just by being honest.
This guy is credible
I've been a licensed and bonded independent residential remodeling contractor for over twenty-five years now and can vouch for every single one of these from the devil's side, lol, having experienced the pain that comes from not adhering to these rules both as a contractor and a home owner. Kudos for an excellent video.
You're also poor and probably complain about taxation. This is all poor people scarcity stuff. U get what you pay for. Not working for free or cheap. A guy at NASA made 1,000 for tightening a bolt? I the best thing about the best country in the world is that we are still free to charge whatever as ridiculous as if sounds. And I I'm good at it you bet I'm gonna hold you hostage. Pay up or git. That simple. And then the buyer becomes enraged when I refuse to accept the price that they value me at. Seriously? How about I come to your job, perform an inch-by-inch analysis of everything you actually do, and then reassess your value as a human? I'll come to your corporate office or hospital where you work. When I catch you texting your moron associates or looking at photos I'll assume you do this daily. I'll count all your time wasting and formulate an average n of hours you waste and then I'll find other relevant variables in your line of duty and Ultimately decide that I can automate your job, pay you minimum, and keep you as a part timer.
In your case, I'll count All the time you waste at Ace hardware looking at tools and supplies and products that are completely irrelevant to the project at hand. Tell me I'm lying I'm an administrator, entrepreneur, market and most recently--builder. Because the morons I was employing at age 17 thought I was only capable of hitting keys and scheduling jobs. Turns out I can work faster and smarter on the computer AND with a drill.
I wanna see this guy pushing a wheel barrow for an hour. Let me put you both to work and remind you where you came from. Maybe he didn't come from where we or I came from. I might as well be from Tijuana or Africa.
Oh and Im a real estate advisor...same thing. No one understands the hard work involved. Both trades need to.....trade for a week and then go talk smack about one another.
Just move to Florida and somebody told me if the contractor is using subcontractors, get a release of lien before you pay them
This is huge of you. I literally only trust contractors I have a friendship with, or develop a relationship with them during the work.
Easy do the work by yourself...
wish we could do that here in California@@rockn997
Quote of the day, "There's plenty of wonderful criminals." LOL, thanks for all the tips, very appreciated!
That made me laugh too!!
So glad I saw this. We have the WORST luck with contractors. Will definitely watch more of these videos.
Great! Glad this content was helpful.
This video has been around a while but wow... Thank you! I am a Bigger Pockets fan but you, Phil are a "Matter of Fact" type! No Bs! I Like This! I am a new investor but have already learned that this is F'D UP and a shady world. I never thought the "Street Me" had to come out in legit business but wow. Thank you, Phil! You have a new fan! Wish I had a mentor like you! Will look for updated video.
Well spoken! Dealing with Contractors is oftentimes a street fight. Watch every video in my playlist on Working with Contractors: ruclips.net/p/PLcPfCvShc59tDh6dRQUncACahekX9VLrg
Rule #8 Never Ever Ever Let the Money get Ahead of the Work. Period.
Well, then this guy would not work for you. I'm NOT financing YOUR project. Period!
@[The] White Rabbit pretty common practice to get 50% down payment to start work moron.
Stupidest thing ever. A contractor it is not a financial institution.
Not in states but no one would work for your project if they have to spend it out of their pocket
PERIOD!!!🤯🤪
I'm a first time homeowner and are looking to complete a few projects this year. Thank you for sharing your insight. I'm always worried of getting ripped off.
Don't let them use your bathroom; they plugged mine!
@@micheleemcdaniel389 guess they'll be digging a hole in the backyard.
@@jennifurzoe1302 Or rent a port-a-potty. In hindsight that's what I would have done as it was a two month job and for number ones he just went to the back of the yard and let fly. Disgusting!
Be very worried. It's fatal attraction for real. I don't want to sound negative, but it's almost going to happen at some point. You just have to minimize the amount of times it will happen. You're one person with a small budget. Imagine how much companies lose annually from employees they hire, train, and educate only to be abandoned, stolen from, lied to, and misrepresented. They just have more resources to take the repeated hits. We don't.
Very informative ! Thank you so very much !!
Excellent video. Clear. Brief. Sharp. Love it.
Thank you!
I greatly appreciate your enthusiasm for proper dealings with Contractors. All of your points are well taken, and says a lot about your experience. Thousands of people would be better off if they heeded your advice. Trust no one. Get educated, learn, If we all did this properly, many contractors would accept the fact that they need to be more honest. You have armed us with great principles dealing with contractors. I know you have saved many people a great deal of financial losses, fustration and poor workmanship. Thank you Phil.
I find that interesting. He sounds like a roided out gym bro, I got about 3/4 of the way through and just couldn't take his tone and attitude anymore.
If there is a single point to take away from this...educate yourself.
Never assume, and get everything in writing.
Art Houston exactly
assume yup. ass of U and me
Art Houston Adk that to a woman you moron
And insist on seeing actual samples. My sider sent me to other homes he had done to see materials used and then turned around and used different materials on mine!
"I'm not in a hurry." Yes, I made that mistake years ago. Hired a guy end of August and gave him a down payment. He showed up in the middle of October, and only after I psycho-called him, from different phones since he stopped answering when he saw my home number. Live and learn.
J FF lol
That’s horrible!!!!
They made it to the job on 6 weeks? That’s fast!
I mean he should’ve been clear about the timeframe from the start, so that you weren’t expecting him to start right away, but if you hired him in August, starting in October is REMARKABLY fast, especially right now. Right now, the company I work for (kitchen & bathroom renos) is booked out for months, we’re currently taking deposits for jobs that’ll start in like July-August of next year. The fact that you got a guy out there in less than 2 months is remarkable
@@Dreadlock1227 I don't think he would have come back at all had I not called him from different numbers. He lied to me, and then he did 3/4 of the job, threw down his shovel and departed, never to be seen again. By then I was too tired of it all to pursue him.
Dear Phil, my case. Owner of a single family home in Wayne County, NC. The property incurred a fire mishap solely in the garage (the roofing and walls are gone) to include significant smoke damages in the interior on walls and attic. The insurance agency provided a final report with a cost estimate. Meanwhile, I´m soliciting bids from numerous contractors from the county and state- getting immediate responses. Some bids well exceed the estimated quota from the claims adjuster and others are questionable, but reasonable. Requesting tips from your end. The property is being rented or leased for one year to clients. I´m a US Veteran looking to earn a buck and feed my own. I´m doing my homework diligently, as many other suggested in my circle of trust, way before I hire a contractor and sign my soul in blood. Besides, the house is put and not walking away. Thanks.
It's extremely difficult to hire the right contractor, but possible. Follow all the tips on this playlist: ruclips.net/video/j7zVv_rbLnI/видео.html
I like this man. Very realistic and rational, people tend to be scum. I don't mind it at all that at times in this video you fire your jets: It brings a smile to my face and we are after all talking about a important thing, financially and otherwise. Keep doing the good work!
I'm a remodeling contractor. I hear a lot of horror stories like this. I know there is something being left out of the story. That something is they hired the cheapest bidder or the first person who agreed to come out. Take the time to develop a relationship with an honest contractor like me. Don't be in such a huge now, now, now rush that you can't wait for your regular honest contractor to get an opening in his schedule to get to your project. Don't expect people to work for free.
yeah all those jerks were cheapskates
dont bid what you cant do lot of people put up a front to get that job they havent had a job that big before and are winging it
out of 5 guys i hired to admin my server the lowballers cost me $1000.00
and 6 months aggrivation the $125.00 hr guy fixed all there screw ups and got my never gonna happen wish list done in under 30 min
Called 70 contractors...70 for a remodel job on a vacant house. They either didn't call back, didn't show up, or had excuses as to why they couldn't show up.
Absolutely! cheap bidders.
@@PK-fp8ie Correct. These "flippers" want it cheap and quick.
I am a contractor, and I don't walk on water, sometimes things just do not go as planed.
One thing I will say is the people who are the angriest at me all fall into one category, and that is the people i won't work for.
Someone will get a good recommendation from a previous client of mine. They will call me to come over and give them an estimate. If I sense any attitude like Phil's or if they lack normal sense of fair play or flexibility, i just tell them I am not interested and thank them for their time, and go stright for the door.
A good contractor dosen't need work, what they are looking for is reasonable people who have a sense of fairness. When I go for an estimate the main thing I am doing is evaluating the client to see how they might react if something dosen't go right, and trust me even the very best contractors run into problems.
Go ask Apple for a cost breakdown to build their phones. lol good luck
You are the slickster that he speaks of in this video.
I agree with this. Renovations in particular are just not predictable. People like Phil are true con artists.
As a contractor, if it starts off bad with a customer, it only gets worse.. Run from this guy! We are always fair and reasonable with our customers
Another reason why people just let their home repairs go undone. Too much stress and anxiety trying to find an honorable contractor that will do the work correctly, at a reasonable cost, without ripping you off!
it's true
I’m one of them
This!
This is SUCH good info. I'm sure the issues are magnified at the commercial and higher-dollar residential level, but even on small household jobs like fencing and irrigating and painting there is something to be learned.
I'm a contractor just starting out that has worked for years for a very honest contractor. your video has given me a few tips on how to continue to do honest labor, because our marketing has mostly been word of mouth and usually that word is "they're honest". I want to keep this reputation while starting out on my own and your video has given me tips on staying that way. I was irked, to be honest, because 99% percent of these "scams" we have never done, and the ones we have were not out of ill intent or was offered by the customer. And yes i am offended by many of your "they" statements but at the same time I see the others that we have to come in and finish the job behind. so as crass as your video is, your video has helped me to stay and honest contractor. thank you.
So what I got from this is:
1. 3 bids minimum (make them compete)
2. verify materials and labor costs are justified
3. only pay upfront costs that make sense but never over 20% project cost
4. Tell the contractor you expect it done in a timely matter or simply put industry standard.
5. I choose materials while also taking advice consideration from experts.
6. Always check and see who is doing the work.
7. If its not in the contract it either better be before the project starts or I aint paying it.
Thank you - that saved me from wasting 20 minutes on this verbose shouting rant
make them compete.... this is when they cut corners and skimp with lower quality materials
I was a contractor for almost 50 years and I wish my customers had seen your video. The contract works both ways and I can only guess at what some of my customers must have been imagining. BTW I never advertised my services, it was all word of mouth - be square with people and you'll never lack for work.
I'm curious, do you have a few things that customers should never do to a contractor?
@@stephenshelton4267 in general, be honest. If the contractor isn't working out figure out what he is owed, pay him and move on.
@@ktajax
mmm
You identified the biggest problem. Homeowners have a habit of imagining that contractors can read minds. Make a detailed list of your requirements and make it part of the contract.
@@facehairteeth That's a good idea but they still quite frequently screw it up. The upside is that if you have everything in writing they either have to correct the problem on their dime or you can fire them and they really don't have a leg to stand on to sue you for any work not done to spec. So you just pay them for what they did correctly and tell them to hit the road on the rest. Most of the time though they are honest enough to just fix the problem in large part because they know their guy screwed up and they don't want a small problem to become a big PR nightmare.
I agree with everything you have said. Specially get every
detail in writing.
You can tell right off the bat if a contractor doesn’t want
to give a detailed list of “everything”.
They are trying to rip you off. As far as estimates go, get
a dozen!
You really need to do your home work about proper workmanship
for the application and the right building materials.
Contractors don’t like when you point out building materials
that have to be installed in a certain way or warranty will be void for that
product.
The last line in my contracts states” process will be videotaped”.
If that doesn’t scare off the crooks nothing will!
The great ones will ask for a copy of that tape to use for
promoting their business.
Don’t just hand it over, bargain with it, it was your time
and effort.
Their times worth money and so is yours.
Rarely will you ever see Phil so animated, so urgent on a topic as this one. This is important information.
I'm a small business residential contractor and I approve this message.
Ok thanks
I got the joke lol
You want the customers picking out materials? Thats insane for me an electrical contractor, no way I want the customer picking materials, even if I make no money on it. They pick out the wrong/inferior stuff
ALL true!! Especially today, I've found most contractors when they have realized that they cannot rip you off, they would rather not take the job.
Or from a contractors perspective when they find out you are cheap and don't want to pay them a fair price would rather not take the job.
Jonathan DeWitt , thank you. A good honest contractor would never put up with this tool. Cheap-ass Realtors attract the shady contractors.
Wow It's is truly sad how easily contractors rip people off with a straight face, I know 2 brothers who has been in the business for approximately 30 years and about a week ago I asked the one a question about contractors and was disappointed to hear that he mentioned that they are all a bunch of thieves, all of them. This was truly disappointing to hear, I believe them because I have known them for quite some time now. I do also believe that not all contractors can be this evil, but the honest ones are not easy to find, this has to be true.
Great points Phil! I would add as a contractor, never tell your contractor that you aren't or don't want to get permits for your renovation. You will get a cheaper quote but it won't be to code and it will be rushed, poor quality work that is more likely to fail.
No matter how much you know, there is always something that can be learned. Thanks.
A lot of what he is saying is stuff I had to learn the hard way when I bought my place. Wish I knew this two years ago. Great video.
Thank you! Unfortunately, that's how you learn. How is your real estate investing going?
I’m grateful for having seen this video, gives me a better understanding. Thank you
I appreciate you making this video! There are not many people like you out there who tells the full truth regarding this stuff. Thank you brother, again I appreciate it.
Phil, I hope you're still making videos and involved in real estate investing. I am so grateful that I came across your channel when I was Googling a question about contractor fees and how they set them. I was relieved to know that we didn't accidentally hire a bad apple contractor -- they practically ALL ARE. And when he revealed to us that he has a criminal record, I was not at all surprised. For years I've been around in-laws, neighbors, workers, employees and contractors who were alcoholic / drug addicts / convicts / codependent / mentally ill / struggling financially. I started wondering why we were attracting that negative energy -- but it's everywhere you look!!!! So for this video alone, I love your fire. Thank you. I actually had a cynical but eye-opening laugh when you mentioned Tennessee. The contractors so far show up between 10 and 11 and leave by 2:30 or 3:00. And even though the contract says "balance due at completion", they're always trying to ask for a draw. I love your idea that they'll start losing money once they pass the deadline. That makes all the sense in the world. So thank you, love.
Watch my entire playlist on working with contractors: ruclips.net/p/PLcPfCvShc59tDh6dRQUncACahekX9VLrg
Most contractors will screw you if they can. But armed with what I teach you on the subject, you can avoid getting screwed.
I have fixed and flipped over 20 properties and here are some of my the best ways I have found contractors.
Ask other contractors - they pay attention to each others work and they know who does quality work.
Home Depot - Call me crazy but I sit at home depot and eat a hot dog and look for the following:
1. Contractor with truck - Small projects you don't need a GC unless you a beginner.
2. The way they carry themselves. A man that cares about his appearance will usually care about his work.
3. Mannerisms - Does he appear to be organized? Is his truck a mess? Does he talk over you?
4. Beware of contractors who can do everything. When they say I can do everything, I reply with if you had to choose one specialty what would it be.
My favorite way to hire a contractor is to stop by when I see guys working and look at their work. Sometimes they will refer you to their boss and I reply with I am looking for guys who want to do some side work.
Think about it, why pay the boss when he is not the one doing the work.
How to pay contractor?
Be safe and smart - Pay for material up front only!
Weekly pay based on line items completed. Contractors have families and need to eat. Be fair!
Never pay early unless you built trust with your contractor because this is a easy way to get screwed.
Offer incentive if he finishes before deadline! Why not you both win and he will be eager to work your next project.
Request invoices, pictures and video weekly before payment. They create your timeline for you by the week.
If something not complete or you have a disagreement you have proof that they created.
Penalty for for not finishing on time. $100 per day for each day past agreed upon completion date.
Invoices should be so detailed that it includes door knobs.
Penalty for for not finishing on time. $100 per day for each day past agreed upon completion date.
Creative Home Buys Good advice. Thanks.
🌲🌝☘️
Wonderful tips! Thanks for taking the time and write them down! 🙏
"WHY PAY THE BOSS" I like that, in other words you think you are smart right??? WRONG, because the boss owns the company that gives you a warranty on that job, the Boss is the one speaking English so you wont get frustrated trying to get your point across, good luck trying to get those workers back to do a touch up, because they will be busy with the work the
Boss gives them, and you will be waiting long time , AND MOST IMPORTANTLY IF SOMETHING BAD HAPPENS (AND I WISH IT DOES, SO YOU LEARN A LESSON) , WHICH INSURANCE ARE YOU GONNA MAKE A CLAIM ON ???? In other words : YOU ARE AN IDIOT
VERY BAD ADVISE ON ONE PART = The boss is the one who carries the insurance! Not to mention, that's called moonlighting and most employees sign an employment agreement stating that it is illegal for them to moonlight. Also, here in South Dakota that is also soliciting and you can be charged a crime for trying to convince my employees to perform work on the side that is unregulated, uninsured, and performed without a permit. Because the boss is the one who can pull a permit.
As a contractor, this rant was gold.
Thank you!
@@freedom_mentor I've gotta rewatch this now 😂
Dude, thank you. The world needs more people like you who are just and fair!
Great video! The amount of problems I have had with contractors; just rehabilitating one house, could fill a small book. Here’s one for you: Two identical Steele entry doors: one exterior, one interior, each with a different swing - one swings in right, the other swings in to the left - purchased in December from a big box store- not installed correctly until September of the next year: issues, wrong doors, door installed backwards (redone), one door of one type and color, one door of another type and color, wrong hardware packages, wrong Caming-color: black not Puter around the glass, wrong hardware color: mismatched Satin Nickel and one Black, changed sub contractors: three times, and so on. It took a complaint to the Attorney General of Connecticut to get five contractors on my porch and the job finished correctly; the same day; nine months later 😳: No BS! One door still has a quarter inch gap on one side to this day incidentally. What a frickin nightmare! I used to refer to my house in those days as “The Nightmare on Noble Street.” This one issue with the doors set my schedule for total rehabilitation project(s) completion back by at least a year; @ least. I won’t even get into the stress and demotivating factors involved. It took about five situations like this one to change the way I deal with contractors and now each transaction is a lot smoother, but still fraught with risk!.
A Big thanks goes out to Richard Blumenthal and his staff for their help. The fact that I even needed to get the Attorney General’s help is the point; cautionary tales abound and people need to be educated about the risks of dealing with contractors; moreover, how to develop back up plans to work around problems that arise around the processes inherent in rehabilitation of properties.
After being screwed over a bunch, I wish I had had a mentor along the way; perhaps then I would have seen a video like this one to learn to know how to negotiate around the pitfalls in the contracting process. Now, I almost always exclusively contract with Brick&Mortar Business Owners who have a verifiable record of stellar performance, and a business location that is more than a pick-up truck! It costs a little more, but it’s worth it.
Also, substance abuse issues abound amongst this skilled labor group: I sometimes make a point to mention that my property is a Drug and Alcohol Free Zone: meaning there is a Zero Tolerance Policy that includes a clause that verifiable use of substances or intoxication on my property = non-payment! 12-Step Recovery Clubs can be a great place to find Clean and Sober Contractors looking for work by the way. There are many contractors out there who do amazing work that I couldn’t; when the contracting process goes well; smoothly - amazing property transformations can occur. My Nightmare on Noble Street is now a Cozy New England Cottage Beach House by the Sea... but achieving this state of transformation of the house from the former mess it was - was not easy; but, the lessons learned - are definitely invaluable!
Thank you Phil👍🏻.
RB/CT
Very valid points. Definitely get everything in writing, get before and after photos as well. This not only protects the consumer but it also protects the contractors as well. We try to educate our customers about the mistakes of going through those fly by night contractors and how to find someone or a company who will do a good job and who will stand by their work. Good Advice man! Keep it up!
even in writing, they don't care. prepare as if you are going to court will help though. they still don't care. even if you win, they will take off and never pay.
"There are many wonderful criminals" 😂😂
I'm glad you see that
@Toby Henderson I'll keep this in mind
That cracked me up when he said that. I wasn't sure if I heard him right. Apparently I did. LOL
Thank you Phil for all you do for this world,
I love that you have an article on all of your video topics. It’s so useful!!!
Thank you!
LMAO! I'm loving your passion Phil!!!! I'm just Realtor right now but I'm working towards becoming an investor. The NO BULLSHIT lessons like this one are GREATLY appreciated and I'm very much looking forward to learning more from you ; )
Follow up video should be "How to find a good contractor"
Well, of course! Here is that one: ruclips.net/video/xrlP-LD8NC8/видео.html
This guy’s a freaking joke
@@frednot809 why?
I used to be a contractor and I found out there were customers that were very slow or delinquent with payments. No matter how well I worked for them.
This happened to my boyfriend. He gave a contractor $2000 up front to get started on a job fixing old doors in our house and we never could get ahold of him again. He took the money and disappeared. At first when i found out boyfriend gave the guy money i though “oh Jeez” i would never do that, but my boyfriend is such an honest person, he is clueless about how some people can be.
Thank you, as we head into a kitchen remodel contract. Took awhile to finally select the best GC but worth the time, $ & efforts. Your lessons here arrived at the right time!
Thanks for the downloadable contractor agreement. Great stuff Phil~
Great job. Just want to add. Be there as much as possible. Almost every time I contract a job... a contractor find a "different" surprisingly easier or cheap way.
Thank you, Phil! I have made most of these mistakes. Still have a contractor who did one job well so I gave him money up front for a second job and he skipped. Wish I had you to do my negotiating for me. Be safe and God bless.
For the ladies, in my experience as a woman, the most critical thing I do is educate myself. I not only read reviews and ask neighbors about quality contractors (Google, Nextdoor, etc), I also educate myself on the details of the project. When I do that, I can have an intelligent conversation with the contractor by understanding the language and realistic scope of the project.
SOME contractors will assume being female, you are not knowledgeable and will attempt to financially take advantage of you. If you are able to ask specific questions (and comprehend), you can avoid a lot of headaches. And sometimes you realize you're actually smart enough to install that toilet yourself! 💪🚽😁
I'll also add that I haven't had a bad experience with any contractor I used, and I feel certain it's because I invested the time to research who is doing the work and how to accomplish the final product. Good luck on your future endeavors!
🔥
I'm too agreeable and trusting and have to guard against that. Research and preparation do make all the difference!
Thank you so much, I feel more confident now, i am dealing with contractors first time.
I believe it's something within me that I continously get screwed by these contractors. I did my research and asked all the questions and hired a contractors that I feel comfortable to do the and the work ended up sloppy the refused to fix minor things because they already passed the inspection😫😫
As a single female, living alone, the tricky thing for me has been that if I do research to try to be knowledgeable enough to simply explain the issue, it seems to put some men off. Even if it’s something really simple.
The last time I called someone from my heating company I said to the guy, “Last time I had this issue with my boiler it was because the pressuretrol pigtail was clogged with sludge, which led to other problems.” He then had me run the shower with the hot water on and proceeded to explain to me that water, when hot, will make steam. 🤪
My radiators were going off heat in the summer whenever the boiler kicked on when I showered. The heat was off. It was 90 outside. He left and the next day I had to call the company back and request a different technician.
In the future I’ll find some costume wedding ring and say “We” and maybe rent a fake husband for the day.
And this was just an inconvenience lol. I’ve grown much smarter with actual contractor situations, but still always feel like I’m probably being “pink taxed.”
Never seen this guy before this video but definitely subscribed. He is hella intense and I love it. More people should be this passionate about what they do and share
I appreciate that you get heated over someone trying to take advantage of others. It shows that you care, and the world needs more people who care about not letting other take advantage of others. Thank you!
thank you so much for the 7 things , now my wife knows what i'm trying to do in the back yard.
Very, very value advice, I've been a general contractor for my own house built and I can share with you in your conclusions, all that's really truth.
Excellent video, looking forward when buying my next new home to be able to keep one step in front of the builder's run around and being able to figure out if he is BS ing me.
Excellent excellent excellent info!!!!👍👍👍👍👍👍👍👍👍👍THANK YOU VERY MUCH!!!I 🙏MUCH MORE success to you as you continue with THOSE RIGHTEOUS standards!!!
I have never seen you before, but I am going to watch this once every two weeks to learn these fantastic rules!!!
As a plastering contractor i agree 100% with this guy , years ago an elderly couple hired a GC from their church to do a 20k job but charged them 59k i was hired to stucco two columns by the crooked GC I charged him 600 he charged home owner 3500 just for what i did homwoner asked me what i charged long story short i helped the old man getting GC charged with crime
Right? other day watched a youtube video where some sistas were twerking in church to the tune of ''oh happy day'' lol. i thought to myself man! this are the last days.
Youre a wanker then.
Asshat number 1 right here
sounds like a fake story
You should of been charging more.
Just got a contract in my inbox. Glad I got accross your vvideo. Thank you sooo much!
Thanks Phil for sharing basic but important information. I'm working on my first investment property and have yet been able to find the right contractors for the job. Hopefully learning from you will assist me thanks!
Appreciate the seriousness and intensity, very refreshing actually👍
You're welcome!
You are soooooooooooo right. Thanks for putting out these important infos. out to the world so people know what to do.
Work hard to find contractors with integrity! Get referrals from good property managers and brokers, and always speak with references.
You're right. Even if you are shy, speak with references. My sider totally misrepresented himself.
@@micheleemcdaniel389 Sorry that happened to you!
Phil reminds me of Saul (Better Call Saul)
Jeremy Smith 🤣🤣🤣🤣so true
I was just thinking that!!
I love Saul
Lol, yeah a snake oil salesman!
😂😂😂😂😂
Hi Phil, I have been stuck with a contractor who was supposed to complete construction in 6 months. Its over 6 months now and I don't see it getting completed. I have had a lot of heated debates but no use. My house is at a stage where I don't see any other contractor taking up the job. Even if they do they will charge a lot more. Please advice what should I do?
I dealing with the same issue now...I'm researching myself on what my options are. I hope someone that has been through this can help us both out.
You are very informative and hilariously animated at the same time!!!! 🤣🤣😂Definitely a fan!
Thank you very much for this information. I needed this and I learned a lot.
Ironically, points 2,3,5, and 7 are also frequent ways that unscrupulous homeowners screw well-intentioned contractors. A reputable contractor will always design a contract that protects contractor and client. He will set his own parameters for timely completion and detail what he must complete before each draw, and leave little for the client to necessarily negotiate.
Material cost is a touchy subject. A reputable contractor will protect himself with a reasonable mark-up or contingency, especially with "prospect" clients...that is, the ones who "aren't in a hurry" or "just want to see what it costs first." People who knee-jerk select the lowest bid from someone who didn't properly cushion their estimate frequently find themselves with a contractor who nags for more money or walks off with the job unfinished. How much are you saving after you pay the contractor you should have selected the first time to redo and finish what Discount Daryl and Slip-shot Sam walked off and left?
44fastgun Hopkins you get what you pay for.
Agreed is this guy even a fucking contractor??? If the materials are 550... and they are charging you 850 its because of material procurement costs, deliveries, labor to gather said materials and time spend getting materials. This guy is a clown
Mi respect for you
@@danch10 300 more dollars to make a 5 minute call or email to buy materials???
well said
I like the content and the intensity is also entertaining
He has several ways of expressing disapproval. I especially liked how @13:59 he crossed his arms and made a "wrong answer" noise.
Great videos as always. Extremely entertaining and full of useful info
Great video. Started my company in February its rough but its something I've been wanting to do for quite a long time.
Thank you! Congrats! How is it going so far?
Phil !!!!! I got 5 minutes in, skipped most of the intro, and jumped right in at 3:04 loved every bit so far. I had to IMMEDIATELY stop the video, laugh and click the thumbs-up button and subscribe after you said "It's a lot harder to verify labor...You have to sit there and CLOCK EM'" Dude I can't wait to see the rest of the video.
I get all kinds of hate from contractors who watch this video. But it’s the truth. This pool contractor just got sentenced to 30 years for screwing homeowners: www.tcpalm.com/story/news/crime/indian-river-county/2022/08/29/amore-pools-contractor-brian-washburn-ordered-prison-decades/7930895001/
Wish I would have watched this before getting a nightmare remodel that has to be torn down and redone 🤦🏻♀️ Thank you
Great video , can you do a part 2 more about setting up timelines for contractors.
Do you "fine" contractors when the timeline is not met? Per day?
I'm wondering the same thing. How do you set up the financial penalty after the deadline?
As a single woman and business owner I can happily say I have always had good deals... because I stuck with all these rules all these years! Always at least 3-4 bids! It’s not just the price either. You want to pick someone you LIKE. I like buying my own materials (like faucets and bathroom cabinet) and getting a fair estimate up front for installation. Also, I want to see a nice folder of photos of previous jobs. Also, before hiring someone for a very big job, hire them for a small job and see how good it turns out. This will give you a preview of coming attractions. Ask a lot of questions, that way they are more careful not to rob a well informed client. If they out talk you or get arrogant or defensive, they will be hard to work with. Don’t be afraid to oversee the work. Some of these guys don’t have a lot going on in the Common Sense department. If they pull a no show, don’t bother calling them back. Chasing people to work is no way to do business. If they don’t respect your time or have integrity, don’t enable them because they will keep being that way. Make sure you get a Playbill of how the progress of work is to be done and always ask how long it takes to do it. Anyways, all these things matter when living in a world where finding the right contractor is like being a boss hiring an employee. What makes you the boss? Your wallet.
Very well said!
I can tell you've had some battles with contractors based on your intensity🤣🤣🤣 thanks for sharing! I definitely saved the video for reference.
12 Years in the Foreclosure/Preservation/Asset Management business- and everything is SO TRUE! Live and learn- but it's much better to KNOW and learn before you lose out on TONS! Thanks Phil!
AM I THE ONLY ONE WHO CAN'T STOP LAUGHING WITH THIS GUY!!!! LOL
Lol no I am laughing to
Invaluable tips. Thanks a bunch!
Worked with contractors on 2 home remodel projects. In my experience here is what they start with: " CASH " . They all ask for cash, even on bigger jobs 30k or more. Than you eliminate the cash folk and get " reputable " company where the person that gives the estimation does just that and is always nice, professional and knowledgeable but the workers they send on the job are cheap labor, lack experience, and I had to watch every step they take and waste time also because they cut corners.
Examples here: cut footing on the home instead of drilling, cut through supporting wall when placing ductwork, incorrectly placing/ sealing vents on the roof causing leaks in the bathroom, etc, etc.
I heard them brag about giving people ridiculously high estimates because they are so busy, and being surprised that home owners accepted.
NEVER pay cash unless it is simple service call. Your money should be traceable to prevent liens. ALWAYS get lien waivers from your contractors subs and vendors. You can get partials through a certain date of final unconditional at the end of the project.
Always pay checks if they want cash they can go to your bank.
Thank you for the incredible guidance and advice, Phil.
Glad it was helpful!
Very helpful. I wish I have seen this informational video before. Anyways going forward will make sure.
Phil, I really appreciate your taking the time and energy and thought that you put into the making of this video. It is obvious that you are experienced in REI, and this is VERY HELPFUL to us newbies. Thanks Again
I HATE CONTRACTORS! And you NAILED it! Everything you are saying about hiring them is absolutely TRUE!
Dodged a Bullet not all of us
Not all of us, if you hate us so blame bad then make sure to do your own work and not hire any.
*you hate bad contractors
Customers always try to cheat you and never pay....... It's not everyone, don't say that.
Contractors get drunk and comment on you tube videos that make them feel wrongfully accused and locked into one big group of thieves and cheaters. It's like saying every man out after dark is going to try and steal your wallet. If I hadn't been drinking I wouldn't even comment. I shouldn't waste my time.
Phil, you are spot on with this video. This is Dan in Donelson. I was just like you. Real nice guy, trusted everybody... Then the first Contractor I hired to take the fallen tree off my house, He tried to screw me....
He told me that I don't have to pay a penny, and he will deal with the insurance company directly, no need to worry. Then, a month later he sends an invoice for over $14,000!!! WHAT! This was a 3k-5k job tops. SO, he put a lien on my property, and I got a lawyer, then he pulled the lien off after hearing from my lawyer. What a Total Douchebag! Never trust ANY Contractor.
I wish I saw this video before the tree fell on my house... Thanks Phil!
So guess you don't trust us tradesman.....
Lol I thought of myself saying most of this but I'm doing my research. Just bought a land so excited.
Thank you!
I know a finish carpenter, two year waiting list for his cabinets. he goes to a job and the guy said do you have insurance? no, why is your truck so old? if you want a new truck rent one for me. what about your?..the finish guy said "thats all alright I got a two year wait and some one is moving up on the list...you need a guy with a better truck and all, I just do good work.
Unfortunately people are all about appearing successful. I'm female, was a licensed GC in CA from 2000 to 2009. Had to cover a sleeve tattoo of flowers as to not appear thuggish to my potential clients. Was told my Suburban wasn't nice enough to be parked in front of their home, that I should buy a new truck. Because then I'll look successful. Or treated like crap on the job, customers thinking they are so much better than I am. I held my tongue many times when I wanted to tell them that my income was most likely equally impressive, but I wasn't living to be house poor.
@@rebeccacaraska4112 Was it worth it? I always let my work stand alone and speak for itself. I have yet to kiss an ass to get anything.
@@doctormcgoveran2194 In each case I simply walked away. I never compromised my self worth or my values. I had plenty of customers impressed with the work I did, that if I got slow, they would surely have something for me to do.
Except for the scenario where they were snobs. I just quietly finished work, and felt more pride in myself for another job well done. But I refused any job offers after. I am not doing this anymore. Too much for me.
I'm doing some custom woodwork now. Just learning how to build furniture.
@@rebeccacaraska4112 I know what you mean. I nmet a hosue bulider one time I was htich hikeing and picked me up.I said "who do you hate to build a hosue for make it ugly who lesbians gay men minorites tell me straight up who. he said andy body who can pay for it. If they get moved in the house at all they stop paying and you never get your money, If a guy ahd to work for the money they invite you over to the first dinner and show it off to all their friends. sad to think everybdoy sho can afford a house got rich stiffing some one.LOL
As a contractor myself I agree with most of Phil's points except I will not do certain jobs with customer supplied materials. Yes, if you haggle with a supplier they will discount for bulk orders but you better believe they're going to go out of their way to get rid of the worst materials they have on the shelves. They generally wont do that with us because we deal with them daily.
I get all my work from referrals and I feel that is the best way to find a contractor but ALWAYS do your research if you've never used them before!
i do light plumbing work now and then for investors...faucets. toilets etc.. they always want me to buy the cheap home depot glacier bay junk and i say ok but not gonna warranty anything..3 months later i am back fixing a leak and charging them a service call which is usually double what the good moen or delta product would have cost in the first place.
I disagree. Material Suppliers aren't nearly as loyal to contractors as contractors may think (or try to convince clients). I can walk into any supplier and get a contractor's account set up with them quickly and get the same discount as a contractor. But contractors are pros at convincing people that they can get a better discount than us non-contractors can. In the real world, I have seen where it is simply not true. Plus, material suppliers really like me because I always pay on time and/or upfront; unlike some contractors that fall behind on paying their materials tab
Phil Pustejovsky I think what Bucko is saying that he frequents the supplier much more than someone flipping 3 homes a year(not you, your audience), hence has a more personal relationship .
JDub Exactly! I've seen it many times and been burned by it myself, hence why I wont do it. Just turns into a huge headache on bigger jobs.
What you're saying Phil is that your relationship with supply houses is better than the contractors, because of your longevity with them, and you pay cash up front. Makes sense, of course. Nothing wrong with that. Why not mentor contractors as well? Shitty contractors are everywhere. They need a course too. I think what I'm getting at is that stop bashing us low-lifes that can't do biz 101 and turn us into super-stars for rehabs! LOL! Just a thought man!
I like this guy!! Righteous anger! And it's the truth. Thank you.
You are absolutely right about book keepers stealing money, and it's always people you'd swear beforehand would never do it.
-Ken
Happened to my relative, he basically made his accountant rich because he trusted him while he himself couldn't figure out why his company had all this business but he wasn't making any money. Never ever trust people with your company finances, you will be stolen from.
You're awesome!!! Thank you for sharing your knowledge. 😊
Thank you! You're welcome.
This was so helpful. Thankyou so much Phil . My husband just died a month ago and i found out my roof is leaking. There's a 4 by 4 brown spot on my ceiling. It was just 2 by 2 and i thought it was just dirt maybe from my airconditioner vent. But this morning after a 3 day nonstop rain, it grew over night so i have to hurry on this. So i will do what you say about hiring contractors.Take care Phil . Your a good man. Carrie
I am currently in my first quick turn which is taking 3x as long as expected because I made all of these mistakes except #3, but I ended up getting screwed badly by telling them my budget...won't be making any of these mistakes again! Thanks Phil!
Thank You Phil. I always need to hear this stuff ... I'm way too trusting....
Man, you have a very strong personality, you sound as if you are ready to kill someone. You DO NOT NEED to scream.
But you will if you don’t listen and lose $15k...
Great video with great info! Question: I am planning to change all my floors in the house so planning to use one of those flooring companies. What should I be aware of? Should I treat them just like a contractor? I actually was thinking of using individual companies for different cosmetic things around the house, such as, changing kitchen cabinets and replacing countertops, like going to Home Depot or Lowe’s or one of those big companies. What is your opinion on that? Also need a plumber. Thank you for your reply or the audience replies. Thank you!
Hiring a decent flooring contractor is one of the easiest contractors to deal with. Use Angie's List, HomeAdvisor, or other services to check the reviews. The big concern with flooring is base boards / trim. They usually avoid that and then you are stuck with no baseboards.
I am speechless! This was the basic training of contractor protocol along with the loud Drill Sergeant! 😆 Great advice!
Thank you so much!
This is an interesting topic and I think you mention some good points in the video. Keep it up.
Thanks for the 411 there's a lot of information that I never knew just the basics
I have been screwed over so many times by contractors I had contractors remove and replace drywall and just a few months later I got a call from my rental tenants that the drywall is starting to pop of the wall because they didn’t use screw they used nails
And also I had the contractors sand and re-stain the hardwood floors in my rental property and they left the floors bumpy and wave and a few parts of the floor had puddles of the clear coat that had hardened before they even smoothed it out and when I got back with them to fix the problems they made ,they said that had never restored floors whereas in there listening it said they did
Bay Whedon
Goes with the territory, when I hear rental property. Owners are usually gaming for the lowest bid, knowing full well the tenant won’t be gentle with their property.
Phil, that's your best video yet, and I've watched a lot of them for many years. THANKS FOR THE BIG HEADS-UP! You're the best buddy.
Making every contractor sound like money grabbing assholes that just want to screw you. That’s whole heartedly untrue and uneducated. Maybe that’s the kind of contractors you attract because there isn’t enough money in the world to get reputable contractor will work with you. Why is is bad that a contractor wants to be profitable? A good contractor knows his numbers and knows what he has to charge to make sure the lights stay on, he gets paid and his guys are taken care of. If you were to acquire a property for $150,000 but it’s value was $300,000 would you list and sell it at $155,000?