A key part of your real estate investment team is working with house flipping contractors. The right contractor will do good work, communicate well, be timely, and have clear written bids. You want someone you can trust and who will be honest with you throughout the project as real estate investing can be unpredictable.
So how do you find the right contractor for your house flipping project?
Ask Friends And Family For Referrals
Ask around and see if anyone you know has used a contractor recently. You can use this as your starting point. Even if they didn’t use the contractor to flip a home, if they liked his work, you can talk to him and determine if he’d be a good fit for your needs.
Other people to ask in your network include co-workers, real estate agents, and home appraisers. Look around your real estate team now and determine if anyone may know a good contractor. You can even ask for recommendations on your social media pages.
Do Your Research
Once you have recommendations, do your own research. That’s great that the person that referred you to the contractor loved his work, but you need to know if he can handle the stress of flipping homes.
The internet is a wealth of information – do a quick search on any recommendations you received and see what others have to say. Read reviews and see how he performed, especially if anyone else flipped homes with the contractor.
You can even check the Better Business Bureau to see if anyone lodged complaints against the company to determine if he’s a good fit for your house flipping needs.
Once you narrow down your options, it’s time to interview your potential contractors. Start by asking for a list of work he’s done, especially house flipping projects. You can rule out any potential contractors right away if they don’t have the right history. Also, ask for his license and insurance to make sure he has the credentials to work on your project.
Once you decide his experience meets your expectations, you can ask any questions about your project. Here are a few ideas:
- What is your timeline? Can you meet the timelines I’ve set for this house flip project?
- What subcontractors do you use and how do you find them?
- How do you communicate issues or delays in the project?
- Will you be on the site daily to check on all work?
- Do you have any legal disputes from past projects?
Add questions about your particular project to the list so you get a good feel if the contractor is right for you.
Once you decide a contractor fits your guidelines, ask for a bid. Get it in writing so you can compare it to others (we recommend getting at least 3 bids).
In the bid, make sure it includes all details, such as a contingency fund for emergency repairs, timelines, and work to be completed. If you have any questions about the bid, ask before comparing it to the other offers, so you compare ‘apples to apples.’
Make Your Choice And Sign A Contract
The final step is to choose the contractor among your options and sign a contract. Before you do, make sure you’ve covered all details and that everything is in writing on the contract. Don’t leave anything to verbal agreement because there’s nothing holding the contractor to his end of the bargain then.
Oversee the Project
Even though you’ve hired a house flipping contractor doesn’t mean you shouldn’t be on site, checking the work often. This keeps the contractors accountable and on time. Without anyone overseeing them, it’s easy to get behind on work, delaying your investment and costing you more money.
When you interview contractors, make sure they know you’ll be overseeing the project. Watch their reaction to see if it’s something they’re comfortable with or not.
The Top Tips To Find House Flipping Contractors
As you look for house flipping contractors, here are some tips to remember:
- Always ask for references
- Never let a contractor work on your property without a license and insurance
- Make sure the bid includes a timeframe and consequences if the work isn’t completed on time
- Include the payment timeline in the contract and the details of how or who will determine if the work is completed satisfactorily to receive payment
Other Ways To Find House Flipping Contractors
If you can’t get references for house flipping contractors or you don’t like the references provided, here are a few other ways to find the right person for the job:
- Ask for references at big box stores – Hardware stores are often a great resource for general contractors. Ask at the contractor service desk if they have any references.
- Angie’s List – Use Angie’s List as a reference, but do the same legwork you would if you found the contractor yourself. Just because they are listed on the website doesn’t mean they are good.
- HomeAdvisor – Like Angie’s list, you can find a list of contractors in the area on HomeAdvisor, but do your research to make sure they fit the bill.
House flipping can be a profitable way to add to your real estate portfolio, but you need the right team of professionals on your side, including the best contractors. Take your time finding the right contractor that will meet your timelines, have affordable pricing, and communicate well.
Make sure everything is in writing and if anything is unclear, ask before signing the contract. Your house flipping contractor is a major player in your real estate transactions, so choose the one that will work best with you.