Many investors concentrate on buying and selling homes when flipping houses, overlooking the value of the hard work in between, which is remodeling the house.
Although these upgrades may not appear as exciting as other aspects of the house flipping process, they are crucial to ensuring that your fix and flip turns a profit. Finding a good fix and flip contractor to work with is one of the most difficult aspects of flipping a house.
Hiring a contractor has a number of dangers. Contractors can be costly, take a long time to complete their task, or fail to deliver on their promises.
The key to a successful flip is ensuring that your home is repaired appropriately and on time. As a result, you need to locate a contractor who will give you detailed and accurate quotes, communicate efficiently, and follow through on their promises. We can assist you in finding a quality fix and flip contractor.
The Best Way to Find a Fix and Flip Contractor
1. Inquire about referrals
Asking around for references is usually the first step in locating a good contractor. Check with your family, friends, and even coworkers to see if they’ve worked with any great contractors in the past.
Because you can get an unbiased critique of their previous work, this is one of the greatest ways to evaluate if a contractor will be good to work with. You might be shocked at how many people you know have worked with contractors in the past!
However, just because a promising contractor has been recommended to you doesn’t mean you should automatically trust them. Regardless of who your contractor is, you should keep an eye on them and supervise their work throughout the renovation process to ensure that they are fulfilling their obligations.
2. Fix and Flip contractors can be found on the internet
Although selecting a contractor online can be problematic because they may be misrepresenting their expertise and it can be difficult to distinguish between good and bad contractors, there are numerous websites that can assist you in your search.
Craigslist can assist you in locating affordable solutions, albeit there will be a large number of contractors to pick from because publishing an ad on Craigslist is free. Contractors can also be found on Facebook, both in the marketplace part where they advertise their services and in real estate Facebook groups.
You can frequently discover reviews or images of previous work on a contractor’s Facebook page, which is a wonderful method to learn more about them before employing them. Additionally, looking for contractors on sites like Thumbtack and HomeAdvisor is an excellent idea.
Another wonderful alternative is Angi (previously known as Angie’s List), which is great since contractors must pay a fee to be featured on the site, which means the quality of options is frequently somewhat greater than on many free sites.
3. Shops in big box stores
Contractors are frequently found visiting big box stores first thing in the morning to acquire all of their supplies, so you can meet them on your own by going there right when they open.
Purchasing materials indicates that they are working on at least one project, which is a positive indicator. You can also ask people who work at big box retailers for recommendations, as they are likely to know some local contractors you can contact (though they aren’t supposed to give out names).
Services for Finding Fix and Flip Contractors
Finally, Home Depot offers contractor services throughout the United States. These services are much more pricey unlike many local contractors, but they can be relied on to deliver a high level of service.
A few private organizations offer regional or national contracting services, but they will usually only deal with you if you can offer them many jobs. If you’re having trouble finding a reliable fix and flip contractor on your own, contractor locator services can relieve some of the stress and eliminate the guesswork.
Subcontractors vs General Contractors
Subcontractors typically concentrate on a particular component of the job, while general contractors will perform everything and make sure of all the work required on a site (such as foundation, electrical, plumbing, landscaping, flooring, etc.).
Hiring subcontractors requires more effort on your part because you must discover and vet numerous contractors at once, but it can also be less expensive and time-consuming than employing a general contractor.
Because general contractors have so much work to do, they generally charge more and grow more slowly, but subcontractors are specialized and work quickly, allowing you to have various tasks handled by different subcontractors at the same time.
If you’re just getting started, it may be tough to find a large number of subcontractors without causing more bother than it’s worth. A conventional fix and flip contractor is a good option for novices, but more experienced investors will probably want to consider employing subcontractors when they have more experience and connections.
Interviewing a Fix and Flip Contractor
You should interview any possible fix and flip contractors you find, whether through recommendations or online advertisements, before making any final judgments.
The first thing you should do is obtain a resume of some sort, so you can verify their abilities and see what types of jobs they have completed successfully. This is a helpful approach to cut down possible contractors if you have too many possibilities.
Next, if a fix and flip contractor’s work appears promising, call them to inquire about their charges, the size of their staff, and their typical project timeline. This will allow you to verify that they understand what they’re doing and when they have the available to complete your job right now.
Finally, if the phone discussion went smoothly, you can arrange to meet with them for lunch or at work to check if you still get along. Go with them at a construction site and have them offer you a quote for the task you need done once you’ve confirmed that they get the idea of what they’re talking about and appear to be someone you can deal with.
To avoid being ripped off, it’s always a good idea to seek numerous quotations, especially if you’re inexperienced at hiring contractors. These quotes can assist you in making your final decision because they will offer you an idea of not only the rates and timescale required but also the contractor’s professionalism.
Managing a Contractor Who Does Fix and Flips
No matter how good your contractor appears to be, it’s always a good idea to keep an eye on them and make sure their work meets your expectations.
Many real estate investors have horror stories about contractors letting them down and causing a project’s timeline to be ruined, even though they had previously worked with them effectively.
Lots of oversight and communication are essential for ensuring that your contractor executes an excellent job. Take your contractor on a tour of the job site so they understand exactly what you want done.
At the start of a job, get a written bid as well as a written estimate of when the work will be completed. It is far easier to follow up on a written agreement than it is to follow up on a verbal agreement.
Maintain close contact with your contractor and stop by the job site frequently to check on the progress. The contractor should discuss any changes to the bid with you if they occur. Stay active in the process by assisting in the selection of colors and materials.
Importantly, whenever possible, try to avoid paying for the work up front. You should never pay more than 25% of the total cost before the job is finished to encourage the contractor to do a good job and prevent them from slacking off or disappearing.
You can sometimes avoid paying a contractor up front by offering to buy the materials for them instead of requiring a deposit. Finally, before paying in full, conduct a final walkthrough with the contractor so that they can show you their work and you can ensure that everything is completed to your satisfaction.
Hiring a Fix and Flip Contractor as an Investor vs Hiring a Contractor as a Homeowner
The amount that contractors charge is the fundamental distinction between how real estate investors and average homeowners engage with contractors.
The majority of individuals will not need to engage the most costly contractor on the market to accomplish their project; yet, homeowners are frequently overcharged since they are unaware of how much projects should cost.
An investor will make certain that they are getting a decent deal, whereas most homeowners will simply pay the contractor’s bill.
Although contractors can earn more money working with homeowners, some contractors prefer to work with investors for a variety of reasons.
Contractors who flip houses can expect a steady stream of business from investors, especially if they do a good job. They can keep occupied with consistent employment from one source rather than wondering about where their next job will come from.
Furthermore, working on an empty property is usually easier than working on one where the homeowners are actively residing because they don’t have to worry as much about sticking to a work schedule.
Is it possible for me to do the work myself in order to save money on a contractor?
Many first-time investors prefer to conduct their own repair work rather than hire a contractor to work for them in order to cut costs. While this strategy can work if you have prior experience flipping and refurbishing homes, the majority of investors will regret their decision.
Flipping properties requires a lot of time, effort, and supplies, especially if you are new to this flipping business. You might lose money whilst doing the job yourself if you’re not an expert in this area and take too much time on the renovations.
Finding and choosing a qualified fix and flip contractor is crucial to ensuring that your homes are refurbished properly.
Above all, having a formal bid and watching their work to ensure they match your requirements is the most critical component of hiring a contractor. Always connect with your contractors and stop by the job site on a frequent basis to check on their progress.