Best ways to find contractors/handymen in your market

[Tyren Robinson]

I paid for a REI mentorship program. As I am working through all the aspects of the program, I realize I need to find investor friendly contractors or handymen as a part of my team. However, I don't know where ti begin searching. I thought Facebook would be an option, but either I am too green to understand the process of engaging a contractor or they were not really interested in working with me. Any advice would be greatly appreciated!

[Jeremy England]

As a builder/investor, I'll give you the perception from the contractor perspective.  When they hear "investor friendly" this is what they perceive.

Investors want it done for bottom dollar, so they find the cheapest contractors.  And most times they aren't even contractors, but unlicensed handymen.  So professionals have to compete with lowball pricing.  Demand is high, so they don't want to waste their time. They've read all the BP books on negotiating and to be frank, we don't negotiate.  The price is what it is.  It costs nothing to NOT hire me.  

Investors often don't want to pay before they refi or sell so the contractor is waiting for the money; and they are more likely to be stiffed by the investor who made a poor investment to begin with. 

Investors often claim they will provide repeat business, but there are so many new investors who have no track record of that. 

Investors want contractors to give free estimates on multiple prospective projects.  estimates take time.  Time is money 

So what is someone to do?  Make it clear you'll pay for the contractors time to quote the project.  I'm talkin general contractor who has to price out multiple types of materials, multiple trade subs, deliveries, etc. A whole house gut rehab costing about 50k shouldn't be expected to be estimated at no cost.  If you are dealing directly with tradesmen yourself such as painters, plumbers, etc etc.  Then most times this should be free. 

Insist on an actual contract with a payments schedule in it.  If they don't have that, then you should question who you are doing business with.  Any professional contractor has a contract with clearly defined scope and clearly defined payment schedule. 

Don't add to the scope of the contract without the expectation costs should be added.  

Time of completion should be defined in the contract.  You add to the scope, you also add to the time.  

Speaking of contracts.  If an investor insisted I sign HIS contract rather than my own.  I'm walking away.  

If you want more professional contractors, you need licensed guys.  Maybe your state doesn't have licensing.  If that is the case, then it is what it is.  You should be vetting them anyway.  Do they have court actions against them?  Online reviews?  web page?  Legit businesses will have at least a small web presence these days.  

Know your state laws when it comes to licensing and contracts. In Florida, if you contract with an unlicensed contractor, that contract isn't enforceable.