There were many reasons why I returned to wholesale, but the main reason was the headache of dealing with a contractor.
Through my experience, I have learned how to find great things and what is most likely to steal from you. At some point everyone in real estate has to deal with these guys, so I thought it would be helpful to share that knowledge with you.
Today, I will share with you six commandments to work with your contractor. If you live by a contractor, I promise that your experience will be much more enjoyable than mine.
Ready? let’s do it!
Six commandments to work with contractors in rehab work
1. You should not always hire the cheapest contractor
When I first started real estate, my logic was that the one who gave the best price would win. But (through a lot of pain, I may add), I’ve learned that the lowest bidder usually underestimates the job.
After that, you usually have to hire a new contractor to fix his sloppy work, which ends up costing you much more.
Don’t do this!
2. You do not have to always use the same contractor
The truth is that your relationship with your contractor can be considered a marriage. At the dating stage, you always put your best foot forward. You are always Johnny on the spot until you get married. And things start to loosen. You will be comfortable and you can start putting clothes on the floor using the bathroom with the door open. This was something I never dreamed of at the date stage.
Well, it’s the same as a contractor! When you first hire them, they’re great — until they’re comfortable! After that, things start to get a little more expensive, your work starts to take back seats, and your work starts to deteriorate.
So it’s important to have a small number of contractors that you use on a regular basis. By doing so, they strive to continue to benefit.
3. You must not use a contractor that is not licensed and insured
From my experience, licensed and insured contractors are a bit more expensive, but they usually do a better job and are safer at work.
At some point I don’t want to file an invoice for an injury that should have been dealt with by the contractor due to an accident at work.
The truth is, if the contractor is licensed and insured, it shows that they are better professionals and is a filter that helps you separate gold from dirt.
You don’t want to do anything else, believe me!
4. Do not pay the contractor too early
Contractors usually urge you to pay as much as you can for a job before it is completed.
I don’t want to do that because paying a lot of money to the front end discourages them.
If someone asks you to paint the fence and they say, “Hey, I’ll pay you $ 900 now, and when you’re done, I’ll pay $ 50,” you can get the job done right away. You will want to finish it early. The cost of quality of work.
But if I now pay you $ 500 and finally $ 2,000, it keeps you motivated to continue working and do it outstandingly.
5. You must not work without a detailed budget
When I was rehab, I usually had some thoughts about what kind of work I wanted to do at home, but to be honest, most of the time I just let it fly. !!
You need to know the overall breakdown of your project. A 100% layout with common ballpark numbers attached to what you need to do before you get a bid from a contractor.
You need to keep in mind the end from the beginning. Otherwise it will cost you more time and money.
6. You should always set a timeline for your project
If you simply hire someone and don’t give them parameters about the timeliness of your work, you’ll have endless headaches.
What I’m doing is working with the contractor to set a completion date. And if they didn’t do that, I would start deducting money from the original agreed price.
For example, if you agree that the work will be done on November 10, every day after November 10, we will deduct $ 75 from the original price until the work is completed.
I tell them in advance about this before hiring them, and it dramatically improved my experience of ending the contractor when they said so.
So you have it, everyone! These are the six commandments for working with a contractor, and keeping them in mind promises to make your life and work much easier to manage.
Is there anything else I’d like to add to the list in today’s comments section?
Please let me know by leaving a comment!