First Time Investor - Contractor Questions

[Justin Hash]

Hi Team,

Im a first time investor looking to buy rental property in Charlotte NC, and before investing have the below 3 questions on finding / choosing a contractor. Any help or responses in general are much appreciated!

Questions

1. Before making a bid on a house, should i have a contractor come in to look at the property? (I'm asking because i dont understand at what point a contractor is supposed to come in the investment process, and i worry that i wont know what to appropriately bid if i dont truly understand the full scope of work needed on the property)

2. Based on when a contractor is supposed to enter the investment process, how should i go about choosing the right contractor? 

3. Any final tips or best practices i should be aware of when looking for or choosing a contractor? (Again, im a first time investor and i really want to avoid as many mistakes as posisble).

Thank you!

Best,

Justin Hash 

[Robi Schreckhise]

@Justin Hash I personally vetted GC's for my investor clients that are investing in the Charlotte area and am currently partnering with a GC so I can help my clients to buy a property and help them by facilitating a rehab on an investment property for them. 

I can tell you a few things I looked for when I was interviewing GC's and what I feel is the most important in how I help investors when it comes to investment!

The first thing I looked for was if they are investors themselves or are familiar with investing. This changes things as far as them understanding the level of rehab you want to do for it to be 'rent ready' vs a flip where you want to put in a higher level of renovation to get the best sell price. The second part of it is making sure they are licensed and bonded for sure. The third is that they understand that speed is king. They have to get the renovations done quickly because every day that goes by, costs you money in holding costs. An investor GC or GC that is familiar with investors understand this best.

The second thing is with the Charlotte market being so HOT properties tend to move very fast so you don't have time to wait to get a GC to walk a property before you need to put in an offer so you have a few options here. One is you need a GC that is willing/able to give a rough estimate off of pictures and videos you send and can give you an itemized rehab cost after you are in-contract. Two, you learn how to rough estimate yourself so you have an idea of what your numbers are before you put in an offer, and then a GC can verify your numbers after you are in-contract.

I hope these suggestions help you out and wish you the best of luck in your investment journey in Charlotte!