3 Ways to Find & Pre-screen GOOD Contractors
We’ve all experienced the nightmare contractors that run-off with our money, and there’s hardly a worse situation than that in this real estate investing business. If you’re in the business of flipping houses, then you know that perhaps the MOST valuable member of your team if your contractor. So, the question becomes “How do I find good contractors?” Currently, I’m somewhere in the process of renovating 12 houses, and I can tell you that putting together the teams of contractors is no easy feat, so I’ve listed by top 3 favorite ways to find contracts for your flips:
#1 – Referrals from Other Real Estate Investors
How many people do you know who are currently buying, fixing, and selling houses? While maybe not every single one of them is willing to share their team members with you, I can definitely tell you that if they are successful, then they’ve found one or more good contractors. If you find that other investors are slow to reveal their contractor’s phone number, then it’s probably just because you haven’t built enough rapport with that investor yet. So, be sure to build some rapport before asking for a referral.
#2 – Referrals from Vendors
Think about all the tile installers, flooring contractors, kitchen cabinet guys, and painters etc. that you know or come in contact with…you’ve surely met (or can find) a TON of them! Ask them a simple question like, “Hey, I know that you do great work. Who are some general contractors that you’ve worked for? I’d like to add another one to my team, and I know that anyone who uses YOU is used to having quality sub-contractors.” By paying them a compliment, you are sure to get some referrals.
#3 – Angie’s List
I know, it’s almost too simple and obvious to even mention, but it’s obvious for a good reason – it’s a good way to find contractors! However, when you have them out to bid on your job, be sure to interview several contractors before choosing one.
A Few Tips for Success when Dealing with Contractors:
- Always get referrals
- Visit previous jobs that they’ve done
- Make sure they are insured (get copy of ins. Card)
- Make sure they have worker’s compensation insurance
- Make sure they have a current contractor’s license
- Cheapest isn’t always best
- Always get multiple quotes
- Always get thorough contractors agreement signed, along with mechanics lien release form – BEFORE starting work
To YOUR Success,
Jim “JimmyZ” Zaspel