Hiring and managing contractors is often one of the most challenging aspects of owning a real estate rehabilitation company. There are many moving parts and things to consider when finding and hiring the right contractors to work on your rehab project. Understanding where to find good contractors as well as how to properly vet and train them is critical to building a successful real estate business.
Today, Don and Ryan discuss how working with the right contractors can impact the success of your real estate business. They explain how your local market can impact the cost of property repairs and how to use inspection periods to properly vet contractors and make better buying decisions. They also share strategies on finding good contractors to work with, the characteristics of a good, trustworthy contractor, and the benefits of working with and training newer contractors instead of veterans.
“Once you find a good contractor, it changes your business forever. You become unstoppable as a flipper.” – Don Costa
This Week on FlipTalk’s Rookie PlayBook:
- How to identify the level of renovation you need to accomplish on your rehab project.
- The importance of basing your offers on the most conservative number within your estimate range.
- How to train property acquisition managers.
- The benefits of taking photos and video during the initial walkthrough of a property renovation project.
- What to consider when estimating repairs.
- The importance of knowing the numbers in your market.
- How your local market can impact the cost of property repairs.
- How to develop a standardized price list for repair costs in your market.
- Using inspection periods to make better property buying decisions.
- Characteristics of a good contractor.
- How to assess contractors.
- How to set your contractors up for success.
- How to avoid contractor burnout.
- Where to find contractors to work with.
- The benefits of working with newer contractors.
- Navigating the bidding process.
- How line item bids help avoid misunderstandings and instances of miscommunication.
- Dealing with pushback from contractors
- National Standard for Property Repairs Sheet
- Our 4-Page Bidding Process
- Make it a point to know your numbers in your market.
- Hire the person first, then the skillset.
- Ask for references from other investors for good sub-contractors.
- Realize your resources are all around you – you just have to be resourceful.
- Don’t be afraid to assert your system and process on your contractors
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