When to bring in a contractor to see if it's worth buying

Question

I'm new to BP forum even though I've been listening to the podcasts for a few months. I've seen some put the house under contract and then bring in a contractor for estimates and then I've heard others tour the home with a contractor. Being my first investment, which should I do?

Troy Gandee · Answer

@Jerell Williams I would say it depends on the extent of repairs needed. If it's pretty minimal, you can try to assume the cost of repairs yourself when you view the home. If it's extensive, you'll want to get a contractor to draft a scope of work so you know more concrete figures. Once you've been doing this stuff for a while, you don't always need to have a GC to scope it. I can usually get pretty close assuming the costs myself. However, you should be able to get yourself a due diligence period where you can inspect and have contractors walk the property while you're under contract. Some of the off-market transactions don't give you much due diligence time, but tradition on-market transactions typically do.

Eric DeNardo · Answer

@Jerell Williams, Welcome to BP! It's a great place to learn and ask questions like yours!

Many contractors may not put in the time to view the properties before you go under contract for a home, but some might! I suggest finding an agent who is knowledgeable enough about construction to know what work may be needed and can refer you to contractors who are reliable and willing to work with you! Where are you looking to invest?

Alecia Loveless · Answer

@Jerell Williams I have one contractor I work with. He of course works with other clients. He would rather look at a property on the initial viewing to determine if he’s on board and doesn’t see any immediate total disqualifying issues than have me waste a bunch of my time and money to find out there’s a major structural issue he doesn’t want to deal with or something after inspections and contracts.

If you’re just beginning you probably won’t have this luxury yet until you get a larger team developed.

Russell Brazil · Answer

No contractor is going to go look at a house you dont own. Thats a waste of their time.

Jerell Williams · Answer

I'm in South Carolina.

When to bring in a contractor to see if it's worth buying

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