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Updated almost 5 years ago on . Most recent reply
![Anthony Porembski's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1469141/1621512597-avatar-anthonyp340.jpg?twic=v1/output=image/cover=128x128&v=2)
Best methods to pay contractors??
I’ve heard most investors say they wouldn’t pay any money upfront but then most contractors I’ve heard say they wouldn’t start work without a deposit. How do you come to an agreement where both sides feel comfortable to move forward without any snags or resentment before the project even starts. Thanks guys and gals.
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![Ralph Stowe's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1365398/1621511664-avatar-ralphs48.jpg?twic=v1/output=image/crop=155x155@0x4/cover=128x128&v=2)
A common theme I hear from pro's is to pay in 3-4 parts. Maybe an initial deposit to pull permits, then pay them after rough-in work is done, then a 2nd payment when they finish and finally, the last payment when it passes inspection. This keeps them obligated to complete the work correct the first time to get paid. If they are total scammers, you are only out permit pull money, but hopefully your due diligence beforehand will avoid those types.