Unless you have the necessary time to perform the repairs to your newly funded real estate investment, you’re going to need to find a contractor to do the work for you. But how do you know who you can trust to provide high-quality work while also keeping your expense as low as possible? Experienced house flippers probably already have a relationship with a preferred contractor, but those just getting into the industry are going to need some guidance.
5 Tips to Remember When Hiring a Contractor
- Get referrals. You’re essentially performing the hiring process when choosing your contractor. Just like it is necessary to list your references when applying for a new job, you need to get referrals regarding your potential hire. Having trust that repairs are being done correctly is imperative when flipping houses.
- Compare your options. Not every contractor is going to charge the same amount for their services, and they are all going to have a varying degree of skill sets. Be sure to choose the best fit for your situation and make sure things will get done correctly when your contractor starts the rehabilitation process.
- Be patient. Yes, the house flipping industry is very time sensitive, and all investors want to start the process of rehabilitation as soon as possible. However, you should never make a decision too quickly, as that tends to lead to mistakes; choosing the wrong contractor can ruin your rehab timeline as well as cost you a lot of extra money.
- Don’t go cheap. If there is one bid from a potential contractor that is a lot lower than the rest, go ahead and throw it out because there is a reason that they aren’t charging as much as the rest. He/she might be cutting corners and that can really come back to bite you in the end.
- Pick a best fit. You really want to get to know the person that you are hiring, both on a personal and a professional level. Are they licensed and insured? Also, you’re going to have to spend a lot of time with your new contractor and getting along with him/her is very important. Communication is vital throughout the rehabilitation process so make sure you pick someone who you can genuinely get along with.