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 the steps to rehab a house?
Although the exact rehab process will vary based on the property and the exit strategy, there are 10 general steps to follow to rehab a house:Evaluate Current Property Condition. ... Calculate ARV and Offer Price. ... Create a Rehab Checklist. ... Calculate a Budget. ... Hire a General Contractor. ... Pull Permits. ... Begin Demolition.More items...•Aug 20, 2021
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
What are some tips to look before hiring a renovation contractor?
8 Crucial Tips for Hiring the Right Contractor for Your RemodelKnow what you want before hiring a contractor. ... Get estimates from several contractors. ... Do background checks. ... Investigate a contractor's work history and work habits. ... Set boundaries for the job site. ... Know what you'll be paying for.More items...•Jul 15, 2021
What is the difference between rehab and renovation?
As verbs the difference between rehabilitate and renovate is that rehabilitate is to restore (someone) to their former state, reputation, possessions, status etc while renovate is to renew; to revamp something to make it look new again.
Is it worth rehabbing a home?
A fixer-upper may be a good investment. But it can also be a huge money pit if you estimate renovations incorrectly, contract out for most projects, and skip an inspection. To ensure a fixer-upper house is well worth the money, look at comparable homes (known in real estate as comps) in the neighborhood.Mar 2, 2022
What to do first when fixing up a house?
We suggest that you start from the front door with the rooms furthest, and then work your way back. You don't have to pass through freshly painted rooms, that way. Work on the walls and ceilings first when decorating, and don't forget to put in any new doors or skirting required.
Why is it easier to find someone who has done work for another investor?
It is usually easier to find someone that has done work for another investor. This is mainly because they will likely understand that you are not looking for regular homeowner prices. You bring them the benefit or more jobs and more work. You help them by providing a way for them to avoid having to constantly find more work and compete for jobs.
What to do once you have chosen your new go to guy?
Once you’ve selected your new ‘go-to’ guy and have them do a job , be ever mindful of anything that doesn’t leave you with a good feeling. Sometimes people will do an amazing act to get the job and then almost immediately do the opposite of what they promised.
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 scope of work in real estate?
Creating a scope of work for real estate requires precise language, no ambiguity to your wording, and the specific deliverables, schedule, technological needs, overview, and materials required to see a project completion. Though there are some fine contractor scope of work templates out there, it’s vital that, whatever you use to build your scope ...
What is independent contractor agreement?
Independent Contractor Agreement. This is the main binding agreement that establishes the ground rules of the proposed relationship between you and the contractor. It is one of the most important things you can do to make sure a rehabbing project goes smoothly, as it outlines the major roles and responsibilities for each party in the transaction.
What is the third document of a contract?
The third document is the one that your contractor is most interested in, obviously: the payment schedule. It lays out how the contractor will be paid throughout the project. Generally, this is done through benchmarks that you choose — not the contractor.
What is a work write up?
Work Write-Up – This write-up was prepared by Neighborhood Development’s Rehab Staff who inspected the property. It identifies mandatory work items that must be included in the General Contractor’s proposal as well as other Homeowner requested improvements (if applicable). The work is specified according to the priority schedule below:
What is affirmative action in a contract?
The contractor shall take affirmative action to ensure that employees and applicants for employment are treated without regard to their race, color, religion, sex, national origin, age, or disability. Such actions shall include but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor also agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth provisions of this non-discrimination clause.
How long is a general contractor warranty?
The General Contractor will be required to provide a twelve (12) month warranty, from the date of the last payment, on all materials and workmanship that were completed under the contract.
Who is responsible for the bid and its contents?
The General Contractor is ultimately responsible for the bid and it’s contents, which encompasses the entire project. This includes site familiarity, inspection and review of the work write-up items, measurements and quantities as well as those listed by any subcontractor within the bid document.
Do Illinois paint jobs contain lead?
Currently for all of the projects, we assume that all painted surfaces contain lead-based paint. Therefore, all work performed on painted surfaces must conform to lead-safe practices and be completed by State of Illinois Lead Licensed Abatement Contractors with workers who have passed a HUD approved lead safe work practices course or workers who are supervised by a licensed supervisor. Proof of current licenses should be submitted with bids. A General Contractor may sub out this work to another contractor who has these current licenses. These guidelines are in accordance with Illinois Department of Public Health Lead Rule and HUD regulations.
Who issues the Notice to Proceed?
The Notice to Proceed is issued by the Neighborhood Development department and authorizes the General Contractor to begin work. The notice also indicates when the work is to start and when it is to be completed.
Do you have to inspect a contractor when you request payment?
The Homeowner is expected to monitor the day-to-day progress of the job. However, the Construction Specialist will be required to make an inspection when the contractor submits a Request for Payment. The Homeowner may also request the Construction Specialist to inspect other work on an as needed basis.
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.
