What should I be asking when interviewing a contractor?

Question

I have come to the realization that to buy a house that cash flows in my area, it's going to need some work.  I have also realized that I don't have the time or skill to accomplish all the work.

I posted an ad on craigslist to try to gain some useful contacts and the flood gates opened.  I got 10 replies in a few hours.  I'm currently on round 2 filtering and narrowing down the field with some preliminary questions like "have you been convicted of any felonies" type stuff.

I'm not at the point when I'm ready to reach out and call a couple of these handymen to interview them.

What questions would you ask?

Cole Walker · Answer

I think it may take some time to find someone you like/ trust to work with. After all the kinks are worked out, that would be a plan that may work.

Stick with the plan but don't forget to scale it depending on how many properties you have, you wouldn't want to over whelm one person, or under whelm 4 people.

Samuel DeMass · Answer

Cole,

I'm a buy and hold investor.  The condition of houses I'm looking to buy precludes most heavy remodeling jobs.  I don't have the need to buy myself that kind of work and headache.  I'll leave that to another niche.  What I'm looking for is properties that have a significant amount of work to be done in the cosmetic/light carpentry arena, but won't need walls replaced or foundation work done.  If that type of work arises, I don't mind calling in the professionals in the field.

What I'm looking to find is someone who I can build a working relationship with, able to assess the condition of a house and the repairs required to get it to a rentable state.  In addition, I want to compensate them by giving them the light switches and light carpentry work that's needed.

I've also considered making them a psuedo partner, offering them X amount of months of X% of the cash flow for helping me turn the property, in addition to their contract profits.  I think this might help align goals for a win-win.

This is a new approach I'm testing to see if it is workable.  The idea here is to remove myself from the picture eventually.

I appreciate your thoughts and feedback.

Cole Walker · Answer

First make sure they are licensed, bonded, and insured. Next I would see if they are a good fit with you. By that I mean Do they do 300k Kitchens? or do they do 12k Kitchens? Which are you looking for? Next you may ask for some RECENT references. How ever many would cure your curiosity. Then actually follow up, ask about the work quality, how many (if any) change orders those customers got hit with, was the contractor there when they said they would be there?, was there good communication? Was the contractor over extended on his labor? Is he doing all the work himself? Check up on him to see if he actually has a current license (in wa state thats easy look up online). Last thing to mind is talk with him, meet with him (or her). Are they pushy? Can you see yourself dealing with this person for the next XXXX days?

Those are things that come to mind.... there are about a million others.... so post follow up questions if you like. Hope this helps

Cole Walker · Answer

....... Its always nice to give someone work. Its very thoughtful. With that said, it totally depends on what type of work you are looking to have done. Is it a few light switches replaced with a dish washer change out? Or is it more?

Samuel DeMass · Answer

Cole,

Thanks for the quick reply.  I think getting the scope of their work (i.e. 12K or 300K kitchen overhauls) is great advice.  Recent references is something that I completely blew over up to this point.  Thank you for your input.

Some further clarification:  I may have mis-used the word contractor to mean an autonomous skilled worker who does the work themselves.  I'm, maybe naively, trying to avoid a large footprint to keep everything close hold and give someone an opportunity to work.

Do you have any additional thoughts?

Samuel DeMass · Answer

Correction to post:

I'm now* at the point when I'm ready to reach out and call a couple of these handymen to interview them.

What questions would you ask?

What should I be asking when interviewing a contractor?

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