Let me tell you about Jack. His story isn't about a flip, but the same principals apply. Jack happens to be a friend of mine, but he is stupidly stubborn and doesn’t like to listen to advice, no matter how sage it might be. Here’s his story. Learn from his mistakes.

Jack decided to build a new house. Great I said, but you’re paying too much for the property, particularly since you’ve got to remove the house that stands on it now. I suggest he wait for the market to soften a bit. I told him he would be able to pick up a better deal and a better location. Well, Jack didn’t listen and bought the property anyway.

Here’s the deal he made: He’s paying taxes on ¼ acre of land, but only a small portion is usable, the balance looms straight up a hill behind his small building site. The house he’s building is too large for the lot so the front of his house will be only a few feet away from a busy road. Plus, the site is only three properties away from a sewer treatment plant (The plant drains its nutrient rich effluent into the bay and that washes on his beach.) To make matters even worse, he bought it at an inflated price.

Anyway, the deal was done and Jack was ready to build. The first step was to find someone to demolish the old house. Make sure and have a contract, I advised. So when he whined that the contractor wanted an extra $1000 due to an unexpected expense, Jack had to pay it and I got to tell him “I told you so.”

The next step was the dirt work followed by the foundation. The site prep went fine, but I wondered about the foundation contractor. How come he was immediately available at the busiest time of year? I gave Jack a name to call of someone who could have recommended local contractors that would do a good job for him. Instead he hired the questionable contractor. The contractor totally botched the job, and then walked out without making it right. Once again, I got to say “I told you so.”

But wait, that’s not the end of the story. Jack hired a worker to help him with the framing. Jack told me the guy really knew his stuff. I suggested Jack get a well respected carpenter that knew the building codes in our area. Well, he hired the guy anyway, based on the recommendation of a neighbor who had hired him to do a little remodeling job. Today I learned a big chunk of work is going to have to be torn out and redone. Guess what. The guy is missing along with one of Jack’s expensive power tools. Jack was so upset and depressed today that I didn’t have the heart to tell him “I told you so.” That will come later. Guaranteed!

Okay, now you have a choice, be stupid and lose money, or be smart and listen to people who know what they’re talking about. Who are those people? Some of the best people to talk to about building or remodeling a house are: BUILDERS. Not your neighbor, brother-in-law, or the local lumber yard. BUILDERS!! Find out who the best builders in your area use as subcontractors. Another source might be to advertise for a retired carpenter, plumber, etc. to give you a hand or do the job. Here again, find out where the retiree worked before he retired and make sure he or she is up to snuff on the building codes. If he isn’t, it will be up to you to make sure the remodel is done to code. Another source is your local Home Builder’s Association. For contractors and subcontractors, check with the Better Business Bureau. Also, make sure they are bonded. For help, go to the following link and tick on your state: http://www.contractors-license.org/

Be sure and read the other hubs on the house flip. You will find them in order they appeared at:

http://hubpages.com/hub/The_Irreverent_Guide_to_a_House_Flip

http://hubpages.com/hub/The_Irreverent_Guide_to_a_House_Flip_2

So, don’t be stupid, listen to people who know what they’re talking about. It will save you lots of money and headaches.