HOUSE FLIP FAIL!! | Los Angeles Fix and Flip Ruined By A Shady Contractor

Actually, I'm talking to a lawyer.

Okay.

I haven't actually told him. Yeah. But I keep saying that, okay, it needs to be done by a certain date.

Yes.

But then he's been pushing it a few times. Yeah.

Does he have a contractor's license?

We thought he did.

Hey everybody. About a year ago, I'd say, I met with a gentleman from BiggerPockets and Like I do, I give him all the information that I can within the hour meet that we meet together and he buys me lunch. And anyways, he said that he wanted to start flipping, so I gave him all the information and I even gave him my free flipping course. And I said, okay, you know, this is not something that you get into right away. You need to read about it. You need to learn about it. If you want some more hands-on training, let me know. Happy to help you. So anyways, a few days ago I get a call from the same guy and he goes, hey, do you remember me? And I go, yeah, I remember you. And he goes, well, I did buy a flip. It's a triplex in Los Angeles and we hired a contractor and we pulled permits and the guy's in there getting permits and stuff. And this was about 8 months ago. And I've been paying him all along. And I go, okay, I kind of know what you're going to say. And I go, how much have you paid him? He says, well, unfortunately I put it on automatic pay and I've— so I paid him everything that I owe him, but he's still like a month or two away from finishing and now he doesn't want to come back. And I talk about this in my course about not paying ahead the contractors because they They'll ghost you. That's what happens. So anyway, so he asked me if I would get involved and go over there, take a look at the project, and either find out how much it's going to cost to finish the rehab so that he could sell it. He was thinking about just keeping it and leasing it as well. But anyways, that's where we're headed. We're headed over to LA to a triplex. Let me get on the freeway here. We're headed over to the triplex to see what kind of condition it's in, how much work needs to be done, and how much it's going to cost him to finish this project. Hi, my name is Joe Homs, and I've flipped hundreds of homes here in Southern California. I have over 40 years of experience. I've been a broker, mentor, and investor, and I want you to Like, subscribe, and share this content with your friends. Who knows if it's an actual tree? Triplex, or they're converting it into a triplex. Hi, Joe. How are you?

Thanks for coming.

Yeah, nice to meet you.

Nice to meet you.

This is Alex. He's my business partner.

Hi. So yeah, so, uh, we have this project. Like, we bought this house like 2 years ago. It took years to get the permit like ready for, and then, uh, we Found a general contractor to help you to help us like remodel this place.

Okay.

But it was supposed to be done last September, but we had some issue with H passport, so it was delayed for a few months.

Okay.

And then but then like when we're ready to finish it, our contractors just I mean. He doesn't— it's not very responsive. So we're left with like things that are not done. So I just wonder if you can like help us look at it and see like how we can push through this project.

Okay.

And maybe get us some referrals for—

Okay.

Yeah.

Yeah. So do you plan on doing anything with the roof?

Uh, the back looks fine. It's the front. The front doesn't look nice. I, I wonder, I mean, if, if we can do— I mean, if we can just do half of it, but then if we do half of it, it may affect the other side.

You could always paint it.

Paint the roof?

Yeah.

Oh, okay.

Yeah, uh, there's companies that do that if there's no damage. I don't know. I can't see from here very close, but is there damage on this side?

I mean, like it didn't. I didn't see any leak like from the storm, so it doesn't seem like anything is leaking. So it just doesn't look very nice.

Yeah.

Here.

So is there is there a garage in the back?

Yes, there is a garage, but then it's not it's not usable. I think the previous owner the previous owner blocked. Their entrance. So, uh, uh, so, uh, no way to get to the garage? Oh, we, we can, we can get there. A car? Oh, the car can't get in.

Car can't get in?

Yeah, because they— the previous owner actually blocked.

And was this a triplex to begin with?

It was a—

or you're converting it into a triplex?

It was a triplex, but then like, uh, for, uh, in this house originally This is like a 5— 4-bedroom in the front, and then this back corner, that's a studio. So I'm reconfiguring it into a 4-bed unit and a 3-bed unit.

Okay.

In the back. So to make it more For better for the tenants, I guess.

Okay.

Yeah.

Okay. Well, let's take a look. Yeah. See what we got. Plan on doing anything with the windows, or are they going to stay like they are?

Uh, this is a historic house, so I can't really change.

Okay.

I want to replace them, but now I can't. There are a few windows that were broken that I, I wanted to replace them, but HPOS say no, so I had to like Taylor-made like a few windows for us.

Okay, so it looks like he has been working in here. Wow, that's a lot of lights.

Yeah, so the thing is, um, I think, I mean, he sent someone here on Wednesday finally to do some measurement in the kitchen.

So, okay.

But then he just never tells us like when he's gonna finish it. So, uh, it's been like this like on and off. So I don't want to just keep waiting for him. I want to have a plan B so, so that if he actually quits suddenly, I don't— I mean, I have something. I have another plan. Yeah, yeah, yeah.

Okay, so, um, This is where the kitchen's going to be?

Yeah, so, um, we have to do some measurements here, so trying to do like an L-shape.

Okay, you got the gas, you got, uh, looks like it's 220 electric down there, and then you got the sink over here, you got the range right there.

Yeah.

And the hood going up.

Yeah.

Lots of lights. Wow, lots of lights. Okay, so now this is, this is one unit?

This is one unit.

Okay.

And then the living room is here, and then everything else for this unit is upstairs.

Okay.

And then the other unit is like an L-shape around, like, Another bedroom.

Is that the same closet or different?

It's a— I mean, they're, um, it's next to each side.

Yeah, side by side.

Yeah, these are the 2 windows I have to redo. Redo, so I have to find someone to make these windows fit into this non-traditional size.

Your furnace is up there?

Uh, uh, the yeah, that's the AC.

Yeah.

But then we're missing the condenser.

Outside.

Yeah, outside. So we will need the condenser.

Yeah, probably the last thing you want to do because not somebody's going to steal it.

Yeah.

Okay, so on this one, really all I see is that he needs to finish the kitchen downstairs. Is that correct?

Yeah, kitchen, bathroom, and—

You know what Section 8 is?

Yeah.

Section 8 housing. If you do Section 8 housing, They're gonna say no, you can't do that. You have to put a regular deadbolt there.

I see.

Yeah. Okay.

Okay.

Yeah, and then your smoke detector, is that a carbon monoxide as well?

Uh, yes.

Okay, and then each room needs to have one as well?

Yes.

Okay, perfect. Okay, let's go to the other one now. I think honestly, I think you're doing really good here. With the contractor, you just have to keep pushing him to get this done. Yeah, yeah, like like literally just give him a time frame. Say you know this needs to be done. Have you have you kind of threatened to sue him?

I I actually am talking to a lawyer. Okay, I haven't actually told him. Yeah, but I I keep now he has. I keep saying that okay, it needs to be done by.

Yes.

But then we've been— he's been pushing it a few times.

Yeah. Does he have a contractor's license?

He— we thought he did, but—

Oh.

And not like— so the, the license number he gave us, like, is, uh, it's registered a con— uh, construction company. But then, like we thought it was his, and he thought that he said he has a partner in that company. So we thought that like that's part of his company. But then it end up the license, and like when we look, we try to talk to a lawyer. So before we did that, we look at his license again. But then his license was not active when we looked at it. So, and then now he gave us like a different story, and then he was like, oh, we— I mean, I told you I'm not— I don't have an active license, but then like, I just heard it from you.

Mm-hmm. You did get permits, correct?

Yeah, the permit is— I pulled, I pulled the—

Okay, you did all that?

Yeah.

Have they been— you should have like a yellow card here someplace where the city comes and signs off things as you're working on it?

Uh, when I got the permit, they didn't give me a card, but then like the inspector told me that he can just put it online.

Okay, okay, but that's been happening.

Yeah, that has. Yeah, okay, he said he has been putting it online, so, but I—

okay, make sure you check. Okay, okay, uh, here, I'll let you do that. And the same thing here, kitchen. It looks like that's the washer and dryer over there. And then the kitchen's going to be over here.

This one.

Okay, so this is more original. This is like you bought it.

Yeah.

Okay. Yeah, cockroaches and stuff like that. Yeah.

Get clear up.

So, okay. And then that's the garage back there. Yeah. Okay. So yeah, like honestly, you're really close on finishing those. Over there?

Yeah.

So that's what I would concentrate on is finishing those. Yeah, um, I was going to, I was going to say, I don't know if you've ever seen this before, but this is required. So you have bars outside. Again, if you have a fire in here, if they're permanent, you can't get out. So that's the purpose of this. You pull this down and it's on a hinge, it releases it and it pulls it out and you can get out. That's That's what that's there for. Now, you think they would let you convert this into like an ADU?

Yeah, we actually had planned to convert it. We were about to submit it to the city, like, but we decided to do that first before—

Yeah, yeah, yeah, no, it's a good idea.

You should.

Yeah, um, definitely push him, the contractor, push him as much as you can to get this thing done because You're honestly, you're really close. I've got a guy that I can recommend to you. If he's not going to do it, then let me know and I'll send you his contact information and he can come out, take a look at it. But you really need to do the cabinets, all the cabinets wherever they're going to go, in the bathrooms as well.

Okay.

Just, just like the plans, same thing.

Okay.

And then have them install them, which is fine. And then the guy that I refer you to, he can pretty much do the rest. You're not that, you're not that far away, honestly.

Okay.

You're really close. You're super close. So I would just continue to push your guy to get it done and, and see where it goes from there. You know, and you know, you can tell him, hey, you know, I'm tired of pushing you. Just be honest. I'm tired of pushing you. I've been talking to an attorney. I don't want to do an attorney. I don't want to sue you, but you know, we just need to get it done.

I should tell him that I don't want him to like scare him more that like he just disappeared completely.

Yeah.

Yeah.

I mean, that's always possible. He's kind of disappeared now.

You know, right now he's still responding, like it's a delayed response, but then he's still responding. But yeah, I don't know if I tell him that I'm— I want to sue you and then he just disappears. Okay, disappear.

But then, uh, that's a chance you have to take, I guess. You know, when you're ready, I— you know, it's up to you, it's your decision. But I would definitely keep pushing him. And see if he can get out here and get this stuff done. You're you're like super super close. You're you're very close to getting all this stuff done. Okay, you need anything else?

No, I think it's it's good that. I got like some input from you. Now I kind of know how to push it forward.

Yeah.

Yeah, but yeah, thank you very much for—

Yeah, no, absolutely. Thank you. Yes, thank you for meeting us out here. Um, it's gonna be good. You're really close. You're really close. You just need to push him a little bit more to get this done, and then you can rent it out. Then you have money coming in. You know, to make your mortgage payment and hopefully a little bit more, and then you can you can do this one at a leisurely pace. Do you have any and not hire him?

Do you have any referral for for landscaping by chance?

I do.

I we've been talking to H Pass. They have like specific thing want us to do for for the the landscaping. But, uh, I mean, for, for now they let us just put mulch for now.

Okay.

And then like we can plant the stuff they want later.

Okay.

So it means—

I, I will text you, um, my landscaper.

Okay.

Okay. And then you can get together with him. Now remember, landscaping is very expensive, very expensive to do. So it depends on what you want to do.

Right now we're just I'm just planning to just put mulch all over for now, and then we'll deal with the plant later.

Okay, I'll text you his information. Okay, thank you. Anybody— and then anybody else that you want me to refer you to, just let me know, and then I'll text you their information, you know. But like I said, you're like super, super close to getting this thing done. Hopefully, hopefully this guy says, okay, let's, let's get this done and out of my way and move on to the next person. Okay, well, nice to meet you. And, uh, again, if you need any help, I'll send you my landscaper right now, uh, to both of you. I'll send you his information and then you can reach out to him and he'll come out, take a look, and give you a price. Okay. Okay.

All right.

Thank you. Okay. Take care.

Thanks for coming. Okay.