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?
The best way to find a good contractor is by referral and word of mouth. Don’t meet somebody at a networking event and hire them on the spot. Do your research! When you are considering a contractor for your house flipping team, ask for referrals. If the referral tells you that the contractor did a great job, you should ask permission to see ...
When should you give your rehab documents to a contractor?
Find General Contractor near you by using your Better Business Bureau directory. Get BBB ratings and read consumer reviews and complaints by people in your community.
Should you hire a general contractor when selling your home?
Look for subcontractors: When you hire a general contractor, they outsource most of the work to subcontractors. In the process, they charge you a fee on top of the cost of the subcontractor labor. In the process, they charge you a fee on top of the cost of the subcontractor labor.
Do I need a general contractor for a bathroom renovation?
Many try to find contractors to get a rehab estimate for a flip. However, it’s difficult to find a general contractor to give you estimates without guaranteeing continual business, or paying for an estimate on every property you want to put an offer on. ... A good bathroom plan minimizes plumbing and electrical runs and locates plumbing ...
What should you not tell a general contractor?
Seven Things to Never Say to a ContractorNever Tell a Contractor They are the Only One Bidding on the Job. ... Don't Tell a Contractor Your Budget. ... Never Ask a Contractor for a Discount if You Pay Upfront. ... Don't Tell a Contractor That You Aren't in A Hurry. ... Do Not Let a Contractor Choose the Materials.More items...•Oct 10, 2017
How do I find a good contractor?
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...
How do I protect myself when hiring a contractor?
Protect Yourself When Hiring a ContractorGet Proof of Bonding, Licenses, and Insurance. ... Don't Base Your Decision Solely on Price. ... Ask for References. ... Avoid Paying Too Much Upfront. ... Secure a Written Contract. ... Be Wary of Pressure and Scare Tactics. ... Consider Hiring Specialized Pros for Additional Guidance. ... Go With Your Gut.Sep 7, 2021
Is HomeAdvisor worth using?
HomeAdvisor is effective for contractors who are just starting out and need to establish a loyal client base. It's also a helpful resource for contractors who hit a slow season and need to pick up some additional business. The obvious downside to using HomeAdvisor as a contractor is the high cost tied to leads.
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.
Why don't contractors give itemized quotes?
The majority of good contractors will never give itemized quotes—especially because the vast majority of people don’t understand business basics, such as overhead expenses. Also, there is a massive falsehood that says a “fair” contractor markup is 15%–20%. That’s not true.
What license do I need to be an electrician?
If they are an electrician, make sure they have an electrical license. If they are a plumber, make sure they have a plumbing license. If they are a general contractor, make sure they have a general contractor’s license. Next, make sure they do actually have the proper insurance and bond.
How many books has John Deere sold?
He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.
Who is Brandon Turner?
Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.
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.
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.
What is a written bid?
A written bid lists the price that the contractor is charging for specific work done. You don’t want to be surprised with a massive bill after the work is completed that you never agreed to. A written bid helps keep the contractor honest. A written bid may also include a time frame for when the work will be done.
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.
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.
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.
What is a general contractor?
In short, a general contractor is a professional who oversees the project. They will gather all the materials and necessary permits, and hire specialized workers to complete the project.
How to avoid cost overruns?
Communication between you and your general contractor is the key to prevent cost overruns, although you should build a “cushion” in your budget for unforeseen circumstances. First, stay realistic when creating your budget. Research the typical cost of labor and materials your project will require.
Who is Ryan Wright?
Ryan G. Wright is a successful real estate investor who wanted to help others find financial freedom, so he founded DoHardMoney.com. Through DHM, Ryan is able to make investing accessible by providing training, tools, and funding for new investors. He has written four books and hosts the successful Income Hacker podcast. He has flipped hundreds of properties and has been featured as one of the top 20 real estate entrepreneurs by Yahoo Finance.
Do realtors need contractors?
Last but not least, real estate professionals are a great source of referrals for solid contractors. Real estate agents and brokers often need to scramble to finish inspection-related repairs during a sale closing. As a result, they tend to establish relationships with high-quality, reliable contractors who can quickly complete necessary home repairs.
What gauge wire should I use for a house?
Most circuits in a home are rated at 15 amps and use 14-gauge copper wire. Circuits for kitchen appliances should be rated at 20 amps and use 12-gauge copper wire. Circuits for an electric water heater, air conditioner or electric clothes dryer should be 30 amps and use 10-gauge copper wire.
How much does it cost to repaint a house?
Estimate painting costs: A typical cost to repaint a house exterior with one coat of paint at 2 painter hours and 1gallon of paint per 100 SF (1 CSF) can cost around $160/CSF, or $1.60/SF. You will then need to add costs for height, as well as painting trim.
How tall should a kitchen countertop be?
The rule of thumb for estimating countertop needs in a house is: 1 Counter: 8 linear feet per 1,000 square feet of living area 2 Counter width and height: 25″ wide x 36″ high
What is a drainage system?
The drainage system consists of sewer laterals, drainage pipes and vents. It’s common for pipes in older homes to break or become clogged. Older homes have cast iron drain lines, which rust out after about 70 years. In some cases, the pipe diameter will be less than required by current codes. If you see cast iron and perform any plumbing, codes may require you to update the drain as well.
What is BTU in heating?
A common update is to add forced air heating and cooling to an older home. The Btu capacity of a residential heating system depends on climate, window size and orientation, insulation and square footage to be heated.
How much does it cost to install an exterior door?
Exterior doors can cost between $200 for a basic slab door, to $2,000 for a stylish Oak or Mahogany entryway. You can expect to pay about $1,500 to cut a wall opening and install a slab door.
Can you refinish a hardwood floor?
If a wood floor is smooth and free of large cracks, refinishing may put the floor back in like-new condition. Most hardwood floors can be sanded and refinished several times.
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.