When you first begin house flipping, how do you know which contractor to trust for high-quality work that gets done on schedule?
Experienced house flippers often develop a relationship with a preferred contractor who they will use for each rehab project. But for those just getting started into the real estate industry, you may need some guidance to choosing the best contractor for you.
Many property investors will hire a general contractor to speed the repair work and get the house on the market fast. The advantage of hiring a general contractor is that he or she can manage all aspects of the repair, rehab or fix and flip project.
A general contractor can hire, schedule, supervise, get building permits, order supplies, schedule inspections and more. He or she can oversee any subcontractors needed, from plumbers to painters to tree trimmers.
Top 10 Things to Look for When Choosing a Contractor
- Ask for referrals.
- Seek out your own references.
- Go see one of his or her current jobs in process.
- Go see a recently completed job with before and after pictures.
- Review pricing and compare at least three price sheets.
- Clarify payment schedule and expectations.
- What types of jobs can he or she not do?
- Make sure the contractor has financial backing and coverage to make it right if something goes wrong.
- Ask if he or the business is insured and covered for lost or stolen materials, as this should be the contractor’s responsibility.
- Don’t immediately choose the cheapest. Weigh in all of these factors. For busy professionals, we recommend using a large, well-established company that a history of experience and various resources.
Can you keep a real estate rehab project within budget? See how you rate as a property investor. Take the quiz!
Tips to Know When Paying a Contractor
One of the most dangerous situations is when your contractor gets “ahead” of the job. Make sure he or she is paid only for work completed. Also, use these tips to help you inspect a job before you hand over a check.
- Take an inspector’s course from Champions School of Real Estate. Know how to accurately inspect repairs and completed work.
- Watch YouTube Videos. You’d be surprised how much is available and how much you can learn.
- Use your mentors and trusted experts, such as your Hard Money lender. Your hard money lender is just as vested as you are in the project. Find a lender who has experience in house flipping and rehab work. They can help ensure work is completed and installed correctly.
Finding the Right Contractor for You
Most importantly, you want to hire the best contractor for you. You want to get to know the person who you are hiring, both on a personal and a professional level.
You’re going to spend a lot of time with your new contractor and getting along with him/her is very important. Communication is vital throughout the property rehab process so pick someone you can genuinely get along with and trust. When it comes to house flipping and property investing, it’s imperative to get the renovations done correctly, within budget and on time.
Catalyst Funding is a hard money lender who can help build your real estate investment opportunities. With a background in fix and flip projects and other property investments, we can provide resources and guidance to help you through the entire process. We strive to be more than a lender! For more information, contact Catalyst Funding online or call us at (832) 648-3626.