Deals to offer contractors to keep cost of rehab down

[Anthony Spera]

Hi there,

I was wondering if anyone had any interesting deals with contractors to offer them a piece of the pie when rehabbing a house. The ultimate goal is to keep the construction costs low which gives you bigger returns, so I was wondering what kind of deals do you make to your contractors to keep the costs lower. Do you offer them a % of the net resale value? Let me know!

[Matt Lewis]

@Anthony Spera - Hi Anthony!

I’m a Designer and General Contractor in Seattle.

On the right deal I will fund and project manage the entire rehab as a JV or partnership.

Do not try to convince a contractor who is not already an investor to JV on your project. It probably won't end well.

It’s a good idea in theory you just need to be careful.