How to Find a Contractor

[Ian Checketts]

How do I find good contractors?

Approach 1: This is by far the most effective way to find good contractors. Drive around similar properties to yours that are being renovated and get these contractors information. No way better than to catch someone in action.

Approach 2: Referrals: Contact anyone you know that has done the type of work you are doing and get as many contacts they can provide.(Make sure to give back in some way to this person! I have a guy who calls twice a week asking for subs and never seems to provide me anything.) You can also ask current contractors you are using, typically they know a lot of other good contractors.

Approach 3: Google: Call or email as many contractors as you can through a Google search. You have to do a quick phone interview and then dig deeper the further along you go.

This is a very difficult process where you can spend weeks of your time finding and vetting contractors. This is well worth your time, because if you don’t do it properly this contractor could put your whole business plan under and ruin the deal. Please put in the effort and time to establish the right team of contractors. Hang onto good contractors when possible, these are hard to come by and if you treat them poorly they are quick to walk away.

[Arn Cenedella]

@Ian Checketts

Good suggestions and ideas. 
A bad contractor can ruin even the best investment deal.

I might add - start with smaller jobs first and see how they actually perform. Kind of give the contractor a test run before turning over a large project to them.

Actually working with them will provide the best information about their performance and work style.

Try several and then find the one or two you like, develop a solid relationship with them, and then they become your “go to” contractor. They will appreciate the steady stream of work and the investor will appreciate knowing they have a contractor they trust.

Architects can also be a good source of referrals.

[Ian Checketts]

@Arn Cenedella great advice! Often times myself included we think once we find a contractor you don't have to do anything. But you have to manage, observe, and communicate constantly!

[Arn Cenedella]

@Ian Checketts

And truth is a lot of this is trial and error.

I have found, the contractor performance goes down and pricing goes up, sometimes it is like they take my business for granted.

So yes, trust but verify. Continually monitor and evaluate. 

[Greg Dickerson]

Finding contractors is one thing. Managing them efficiently and successfully is another thing all together. Here are a few more point that will be helpful. 

Some of the best ways to find contractors is to talk to architects, designers, engineers, realtors, property managers other investors, Facebook groups, supply houses home builders association and other contractors. Also check MLS for flip properties and new construction specs for sale. Make sure to get references of 3 or more current clients with work in process, 3 or more recent past clients, and visit some active job sites to see how they look. You can tell a lot about a contractor by how clean and organized the site is and the quality of the subs as well. You also want to talk to the subs to make sure they always get paid on time and ask what they think of the builder. Make sure to check license status and for complaints with the state board and get proof of insurance, bonding capacity if required etc. sent to you directly from their insurance company with you as named insured.

Here is the key to managing contractors. You are the leader so it’s your job to give everyone what they need to be successful. The leader sets the pace of the pack.When it comes to managing contractors you need to understand they are a vital part of the team. You need to be easy to work with, be respectful, establish a clearly defined detailed scope of work, lay out clear expectations of what you want done and when and hold them accountable to the goals. This is how you set the contractor up for success which helps them be more profitable and avoid issues. This approach will put you on the top of their list. After several projects you should be able to build a database of costs so you can set and control the budget. You tell the contractor what you are willing to pay. Be fair and reasonable. You need stay ahead of them on the cashflow. Do not pay in advance for work not complete. A good contractor will not need a deposit to get going if you pay them upon completion of each phase.

[Ian Checketts]

@Greg Dickerson awesome advice! I think its one thing that takes a lot of experience and learning.

[Alexander Szikla]

Go to Home Depot at 6 AM and start talking to folks. Those getting an early jump on the day will usually be the more competent/productive folks. 

[Ian Checketts]

@Alexander Szikla thank you for your input!