Paying Contractors

[Bill Newport]

Hello All,

I am starting to get bids from contractors on my first flip and wanted to get some advice on how to pay contractors. I know some people do it in quarters, some in the scope of work with a timeline that has to be met. Just wanted to get some perspective from investors and if possible contractors as well. Thank you...

[Marc Freislinger]

@Account Closed has it right. We have a few different contractors. Some we pay weekly, some only at the end of the project. However, you'll never want to pay a contractor for work not done. You'll always want to hold enough back that you can pay someone else to finish the job if your contractor decides to get up and walk away.

And we always buy the majority of our own materials. You can negotiate discounts with the places you shop, and it's easier to control your expenses. Some contractors will even mark up materials and/or charge you for going to get them.