- Finding General Contractors That Are Qualified Can Be Difficult. Here Are Some Tips To Find General Contractors For Real Estate Investors...
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on how to find quality general contractors for your real estate investments.
If you ever rehabbed a home, then you probably know by now that finding a GOOD contractor can be a tedious process. Having to pull multiple quotes, a variety of price ranges, and different qualities of work.
So how do you know, as a real estate investor, who to work with, and who NOT to work with.
Let’s start things off by going over where to find general contractors...
Where To Find General Contractors?
- Working with Mom and Pop vs. Big Companies (Master Licence)
- Investor Referrals - don’t expect the best
- Online - Craigslist, handyman sites, google searches, REIClub directory
- Home Depot / Lowes - Go early 7-8am when contractors are buying materials
- Drive around neighborhood - look for trucks, signs of construction
- Advertise on their own car - always call those
What To Ask When You Find General Contractor?
- What is their specialty?
- How many years have they been doing it?
- Do they work with investors or homeowners?
- References - 3 most recent jobs, not the ones they just tell you
- Are you insured, and what’s your guarantee?
- What recommendations do they have on repairs?
- Can you provide me with an Itemized list of all the repairs?
- Estimated time to complete a job like this?
How To Test Without Taking Too Much Risk?
- Drive out to their current or past jobs to look at their quality
- Small jobs first to test the work - do not give multiple projects up front
- Have them explain - Tell them the idea, and let them explain to you what they will do
- Listen to the details
- I always like contractors who give repair advice, on a budget
- Trust your inner compass - and don’t fall for the whole “trust” thing.
- Never pay upfront - regardless of the job size - especially if it’s the first job (Your house won’t move, but the GC can bail.)
- Pulling multiple quotes does a few things:
1) gives you an idea of exactly how the repair will need to be done
2) average price for the repair - which makes it much easier in making decisions
When finding general contractors, don’t be afraid or even intimidated when interviewing. Even with NO experience, you have to remember that YOU are in control, YOU control the money, and YOU ultimately make the final decision. It is the contractor’s job to make you feel secure, and prove to you that they can be trusted. The best advice I can give you when building your real estate team, always start small, and depending on the results, you can scale it incrementally.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel.