Lender · Chicago, IL · Member since 2015 · 83 posts · 13 votes
Hello All, I'm a rookie investor in Chicago focusing at this point on fix and flip SFH's. First off I've been on BP for about a month and a half, and have so far found the information and the tools invaluable. With that said I have a couple of deals lined up and I'm looking for advice or tip in finding reliable contractors and trades. Any advice is greatly appreciated.
I think the best ways to find good contractors is to attend REIAs and ask around and call references of contractors as you're testing them out. You may not find the right one right away off the bat, but you'll learn plenty.
Check with Jean Norton she has done some rehabs in Chicago. No matter who you choose make sure that you have a few clause in the contract so there is no confusion.
1. Penalties if they are over the finish date
2. If they go over budget they will have to eat it. (especially with labor)
3. Make sure they are insured
4. Make sure they understand if things are stolen from the site they are responsible if they just let it out and did not lock things up
Here are my thoughts on contractors having hired many as a general contractor. As others have said, get referrals from people you know and trust. Try to educate yourself about the general cost of the projects you need him (or her) to do so you will know if he is reasonable. If he is late for your first meeting, drop him. Pay attention to him as he looks over the job, if he is good he will ask a lot of questions take measurements and take notes. When you find a good one, treat him well.
When looking for new contractors get numerous bids for each trade. Make sure you have a very specific IFB/scope of work so that everyone is bidding exactly the same process/material. Then toss out the low bid (you get what you pay for) and toss out the high bid (that contractor doesn't need the work) and select one of the middle bids from the contractor who impressed you the most.