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Updated about 10 years ago on . Most recent reply

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Marcus Irons
  • Investor
  • Norfolk, VA
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Contractors... What should I ask?

Marcus Irons
  • Investor
  • Norfolk, VA
Posted
So the first deal for me and my partner seems to be nearing. We are using a Hard Money lender for our first flip and now we are searching for a general contractor to do the work. What are some questions that I should ask all of the potentials?

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204
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Ahmed Porter
  • Contractor
  • washington, Washington D.C.
64
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Ahmed Porter
  • Contractor
  • washington, Washington D.C.
Replied

contractor for 15 years call a few people out to look at the project the one who are on time and get you the bid on time should be on your short list.If they can not meet on time are turn bid in  on time are call back in a timely manner are red flags to start off. If you have no idea at all you can get a hud property consultant to do a scope if you are green so everyone is biding on the same work. Do not give to much money up front, I will say it twice do not give up to much money up front that is your only leverage  once its gone so is your leverage,Stick to your payment terms as much as possible,  set up time table and if they are not doing what they say have a back up plan.make sure they have a land line also so easy to change a # and take your money with just a cell phone and a pick up truck just a  heads up. YOur hard money lender should have maybe one to ref you also .Make sure you tell your GC your a investor not a home owner and you are not looking for a home owner price when doing your project. ask him how he plans to do the job a good contractor can lay it out in a few min and show you potential problem that may come up on the job if he is Good. wish you the best Marcus

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Karen Margrave
  • Realtor, General Contractor, and Developer
  • Redding, CA & Bend OR
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Karen Margrave
  • Realtor, General Contractor, and Developer
  • Redding, CA & Bend OR
ModeratorReplied

@Marcus Irons Welcome to Biggerpockets. I congratulate you on trying to figure that out before you talk to contractors. Here's a blog post I did on the subject sometime ago. Also, do a search for "contractor" and there's a zillion other posts. Good luck! Hiring Contractors

  • Karen Margrave

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Nathan Brooks
  • Real Estate Investor
  • Kansas City, MO
187
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Nathan Brooks
  • Real Estate Investor
  • Kansas City, MO
Replied

Get multiple bids, and walk through with them as they talk about everything.  Say you have ideas of how you want the construction to go but you want to hear their ideas and see how you guys work together.  Get the bids ... review them. 

Let them know when you need the bid back, I usually ask for them within a few days. If they can't do that, they aren't my guy.  

Then ask the process, timeline and scope of work, and the draw schedule ... don't give too much cash out up front ... also can save you a little money using the hard money lender if you don't have all the cash out for reno up front (the lender most likely wouldn't do that anyway).

And ... be careful.  Do your homework.  And check on them throughout the process.  Not because you don't trust them, but because its just your job to know they are doing what they are supposed to (lesson from experience!)... 

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Marcus Irons
  • Investor
  • Norfolk, VA
0
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Marcus Irons
  • Investor
  • Norfolk, VA
Replied

Thanks Karen, I'm going to give that a shot.  When I see answers like that sometime I think "well dang, why didn't I think about that".  That's what great about the Pockets.  See ya around.

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Marcus Irons
  • Investor
  • Norfolk, VA
0
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31
Posts
Marcus Irons
  • Investor
  • Norfolk, VA
Replied

@Nathan Brooks thanks a lot, this is some really useful info.  I had an idea what kind of questions I wanted to ask but I didn't really know how to go about doing it and how specific.  From all the podcast that I have listened to I already knew that keeping an eye on them would be in my best interest so hearing it again reaffirmed that for me.  Thanks again!

User Stats

204
Posts
64
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Ahmed Porter
  • Contractor
  • washington, Washington D.C.
64
Votes |
204
Posts
Ahmed Porter
  • Contractor
  • washington, Washington D.C.
Replied

contractor for 15 years call a few people out to look at the project the one who are on time and get you the bid on time should be on your short list.If they can not meet on time are turn bid in  on time are call back in a timely manner are red flags to start off. If you have no idea at all you can get a hud property consultant to do a scope if you are green so everyone is biding on the same work. Do not give to much money up front, I will say it twice do not give up to much money up front that is your only leverage  once its gone so is your leverage,Stick to your payment terms as much as possible,  set up time table and if they are not doing what they say have a back up plan.make sure they have a land line also so easy to change a # and take your money with just a cell phone and a pick up truck just a  heads up. YOur hard money lender should have maybe one to ref you also .Make sure you tell your GC your a investor not a home owner and you are not looking for a home owner price when doing your project. ask him how he plans to do the job a good contractor can lay it out in a few min and show you potential problem that may come up on the job if he is Good. wish you the best Marcus

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98
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Eric Mauricio
  • Fargo, ND
26
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98
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Eric Mauricio
  • Fargo, ND
Replied

@Marcus Irons - I was going to ask this same question, but I found your post. Looks like you've received some great responses back. Thanks and good luck with your flip. I'm hoping to pull the trigger on a flip soon! 

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Marcus Irons
  • Investor
  • Norfolk, VA
0
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31
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Marcus Irons
  • Investor
  • Norfolk, VA
Replied

@Erick M - No problem that is the joy of bigger pockets.  This website is just amazing!