One question we get asked all the time as it relates to fix and flip projects is, “Can I complete the work myself?” If the work is cosmetic, yes you can complete cosmetic work on your own. However, if the work is beyond a paint job and carpets, you will need to hire appropriately licensed contractors for the job. Networking with other investors and those in the industry is a great way to find credible contractors.
You’ve likely heard the good, bad, and ugly when it comes to hiring contractors. We’ve put together some tips for vetting contractors to help you hire the best team for your real estate investment project.
Don’t settle for the cheapest option. Of course, we all want to save money, however the cheapest doesn’t alway mean the best. When considering contractors for your real estate investment projects, it is best to weigh the combination of price, experience, and professionalism.
Check references. When considering contractors for your renovation project, ask for references and be sure to complete your due diligence by speaking to those references. Find out how many jobs the contractor has completed for them, pros and cons, and ask to see completed work if possible. Make sure that the style of work along with the level of professionalism that you expect meets your standards.
License and Insurance. Make sure to ask contractors for their license number and insurance. Check with the state to validate the licenses for both the general contractor and any subcontractors that will be completing work on your project. Angie’s List is a great reference source to check reviews and connect with other clients who have used the potential contractor.
Be clear. When you meet with potential contractors, be very clear about what you are looking for. Before signing any contracts, be sure to discuss the full scope of work, payment schedules, who will be doing what, and set deadlines. Be sure to have this all in writing and clearly communicated with your contractor before work begins.
Monitor progress. It helps if you can have boots on the ground during the length of the project. Show up on the site regularly to ensure project flow is going according to plan or to address any issues that may arise. If you can not personally be there, hire a project management company to ensure the work is being done according to plan.
Set realistic and mutual expectations. Working with a great contractor likely means that that contractor is in high demand. You want to find a good balance of the quality of work being completed, the speed of completion, and the cost. Contractors are likely working for more than one client at a time so be patient and understanding of their needs and demands as well. Communication is everything!
Make sure to attend local REIA events, visit https://www.biggerpockets.com, join local real estate investment Facebook groups, and use your network to your advantage. Who you know is as important as what you know.
When you’re ready for your next real estate investment project, Alpha is here to provide you with fast, flexible, reliable capital that fits your investment needs . Visit www.alphafunding.com to get started or call us at 732-657-2014.