Hiring a rehab contractor is the most important hire you will make. They will be your point person on site while the project is underway so getting this hire right will give you a leader you can trust to guide the project to completion. The best way to find a good contractor is by referral and word of mouth.
How to find a good contractor for home renovation?
Another good source for locating home rehab contractors is to ask other people in your community who have done rehabs and flips. The rule of asking for referrals still applies. Make sure the referral sources aren’t related to the rehab contractor, and be sure to see the work.
How do I find the right contractor for my project?
Apr 01, 2016 · Here are my 6 favorite’s methods to find contractors for your rehabs. 1 – Home Depot. This is the best place to find contractors, just make sure you get there before 8am. There you will see contractors picking up materials for their projects and a …
Do I need a general contractor or a subcontractor for a renovation project?
Jun 14, 2021 · Join Nick Lamagna on The A Game Podcast with guest Ryan “Rotty” Garcilazo, founder of The Rehab Depot an executive level rehab consulting company! Ryan has flipped over 1000 homes as a contractor and now focuses on helping bridge the gap between investors and contractors to help everyone make more money with less headaches.
How many contractors should you hire for a home renovation project?
May 24, 2021 · One of the best ways to find good contractors is by asking others who they have used for similar work. It’s a simple yet effective method that can help you out as well. But get referrals from a number of different people you trust. When people know a contractor has done great work in the past, it’s likely they’ll do so in the future. 4. Google them
How do I find a reputable contractor in my area?
Know What You Want Before You Get Estimates.Ask Friends, Relatives and Co-Workers for References.Interview at Least 5 Contractors.Be Realistic About Availability.Ask What Work Will Be Done by Subcontractors.Choose the Right Contractor for the Right Project.Check Licenses, Complaints and Litigation History.More items...•Feb 14, 2020
How do I choose the right contractor?
How to Choose the Best Contractor for the JobObtain multiple bids. ... Consider the needs of your specific project. ... Take note of their communication style. ... Consider their availability. ... Check to make sure the contractor is licensed and insured. ... Meet their team and subcontractors. ... Check reviews and references.Mar 30, 2020
What are some tips to look before hiring a renovation contractor?
10 Tips for Hiring a Contractor1 Go with Your Gut. ... 2 Make Sure the Contractor is Licensed to Work in Your Area, Bonded, and Insured. ... 3 Pick a Contractor Who Specializes in Your Project Type. ... 4 Have a Detailed Contract in Place Before any Work Begins. ... 5 Find out Who's Performing the Work.More items...•Oct 28, 2011
Why is it important to have more than one contractor on your list?
You’re expecting your contractors to be perfect at everything, to tick every box you’re looking for and that’s just not possible. But that’s also why it’s important to have more than one on your list so that you always have someone for all of your needs.
Is a contractor a good business owner?
To begin, contractors are not generally not good business owners. Just because someone can bake doesn’t mean they can run a bakery. The same thing can be said about contractors. Just because someone can swing a hammer doesn’t mean they can answer phone calls or show up on time.
What to keep in mind when hiring a contractor?
If you have a project lined up and are looking for a contractor to work with, there are several things you want to keep in mind. 1. References: You need to treat hiring a contractor in much the same way that you would treat hiring anyone else for your team. If you are working on a rehab, it is not a stretch to say that your contractor holds ...
What to do if your contractor isn't licensed?
If your contractor isn’t licensed or insured, you need to move on. Without the proper documentation, they shouldn’t even be a consideration. 4. Payment Schedule: To save yourself time and aggravation, you need to know how your contractor expects to get paid and the manner in which you intend to do so.
What happens if a contractor is not willing to stand by their work?
If a contractor is not willing to stand by their work, they may just do the minimal amount of quality and move on to the next job. There are many good contractors out there. Asking the right questions before you hire anyone will save you time, money and headaches.
What to do if a contractor asks for money?
Any time a contractor asks for money up front, it should set off a red flag. You can expect to pay for the materials, but never give them money for work that hasn’t been done yet.
Can a contractor come back without a license?
A contractor without a license can come back to bite you in the event of an unforeseen accident at the property. To avoid such a scenario, simply ask to see a copy of their current license. A contractor with nothing to hide usually has a copy in their truck. Outside of their license, you need to verify their insurance.
Do you need a complete list of everything you are working on?
You don’t necessarily need a complete list of everything they are working on, but you do need a commitment that they will be available when you need them. 3. Licensed & Insured: Price is always important when running a business. However, there are times when you need to look past the bottom line.
Can a bad contractor cost you money?
Not only can a bad contractor cost you time and patience, but they may also cost you money. Fortunately, there is a rather elegant solution: avoid bad contractors. Of course, avoiding working with a bad contractor is easier said than done. However, in vetting your contractors appropriately you mitigate the risk of working with one ...
Get a Recommendation
If you’re looking for a movie recommendation, which source do you trust…
Online Recommendations
Of course there are a million different places that you can look online to try to find reviews as well for a contractor. Like I mentioned in the previous section, you don’t want to rely on one that only has a couple of reviews. Find one with dozens or even hundreds.
General Contractor vs Subcontractor
Before I dive into hiring your contractor, there’s another option to consider.
Picking Your Contractor
Okay. You’ve done some preliminary research, and you think you’ve got a good contractor that you might like to hire. At this point, you still shouldn’t just hire the contractor because you’ve done a bit of research!
Interview Process
First, you’re going to do a basic interview with them. I recommend asking for a resume, or basically a portfolio of examples of some work they’ve done, how many projects do they do per year, and how long it usually takes them. Some contractors won’t be willing to do this…so don’t go with them. There are plenty of contractors out there.
Conclusion
Whew! That’s a lot…but it’s essential in my opinion. The better you do this step, the more likely you are to make a profit! And then hopefully you can find someone who you can trust and can bring multiple deals to.
How to tell if a contractor pays on time?
Talk to both clients and subcontractors, who can tell you if the contractor pays them on time. Ask previous clients if the contractor's estimate was close to the final cost, if they got along with the project manager and if it's possible to see closeup photos of any completed work.
What is required for a large renovation?
A large renovation may require the contractor to bring in subcontractors for specialized work such as electrical, plumbing or detailed carpentry. You'll want to know when outside workers will be in the home, and you also want to know that your contractor will manage and supervise their work.
What happens if a contractor doesn't pay his subcontractors?
If your contractor doesn't pay his subcontractors or suppliers, they can put a mechanic's lien against your house. You want copies of receipts for all the materials, plus lien releases from all the subcontractors and the general contractor before you pay.
How long does it take for a contractor to start work?
A contractor's availability can depend on the time of year and where you live, but the best contractors have consistent work, so expect to wait a few months for your project to start. "Three months is going to give them time to hopefully finish up their current project and get yours on the calendar," DiClerico says.
Can a less reputable contractor finish the job?
Less-reputable contractors could finish most of the job and then move on before they get to the final details. Don't make the final payment until you are completely satisfied with the work and have all the lien releases and receipts. Make this clear in your payment schedule.
Do you want a contractor to use your money to finish another job?
You don't want a contractor to use your money to finish someone else's job. The contract should include a payment schedule and what triggers each installment to ensure you're not paying for work on schedule when the contractor is behind the projected timeline.
Do you need a license to be a general contractor?
General contractors and most subcontractors should be licensed, though the procedure varies by state and municipality. Check your state disciplinary boards, Better Business Bureau and local court records for problems. Ask the contractor for a copy of his or her license and copies of the licenses of the subcontractors who will be involved in the project.
How to make sure your contractor is doing a good job?
Here are a few tips on how to make sure your contractor is doing a great job. Constant communication. Visit the property often.
How to meet contractors?
Another way to meet great contractors at large stores is to visit the store early in the morning and see who is buying large amounts of supplies. The people buying materials are probably contractors, and they may be looking for more work. You know they have at least one job going since they are buying materials. Some stores will also give you the names and numbers of contractors who they know. You usually have to be a frequent customer at those stores since they are not supposed to give out names or numbers.
Why do you hire subcontractors to repair a house?
When you use subcontractors to repair a house, you have to hire out certain jobs and schedule the work. The benefit of hiring out specific jobs is they can get done quicker and cheaper than a general contractor. Many times, subcontractors will specialize in just one thing like: Electrical. Plumbing.
What is the most important part of real estate investing?
Finding and watching over contractors is one of the most important parts of being a real estate investor. If you are a homeowner, doing a few things in this article can save you a ton of money. Do not assume your contractors are awesome and will always do what they are supposed to do. You have to spend time finding them, vetting them, and keeping tabs on them.
How much does it cost to remodel a kitchen?
If you are remodeling your kitchen in a $200,000 house, it should not cost $50,000! It should cost less than $20,000 or even less than $10,000 depending on how fancy it is.
Is it hard to find a contractor?
Contractors can be hard to find, very expensive, take a long time to finish a job, or even quit on you. If you can find a good contractor with clear and detailed bids, great communication skills, and a great work ethic, it is awesome. I own 20 rental properties and complete 20-30 fix-and-flips a year, and contractors are vitally important to me.
Do you have to pay for work not done?
Don’t pay for work not done. Some contractors want partial payment before any work is started on a job. If you have worked with a contractor before and this is their policy, it may work to pay them some money to get started. You never want to pay more than 25 percent of the job upfront.
