How Do You Approach Contractors for Fix & Flips?

[Joseph Kirk]

Hey everyone,

I’m new to fix-and-flip investing and trying to figure out the best way to work with contractors. Yesterday, I walked through a property that needed a full gut, but I didn’t bring a contractor with me, I only brought a friend who's somewhat knowledgeable in some renovations. Now, I’m wondering—should I be paying a contractor to walk properties with me before I make an offer, or should I first get the property under contract and then get bids?

I don’t want to waste time (or money) bringing contractors to properties I might not even buy, but I also don’t want to go into a deal blind and underestimate the rehab costs. How do experienced investors handle this? Do you have a few go-to contractors who will walk properties for free in exchange for future work, or do you pay them upfront for their time?

Any advice on your process for evaluating rehab costs and working with contractors would be super helpful!

Thanks in advance!

[Taylor Dasch]

Its hard when your starting out and havent used the contractor as on their side they are likely wasting their time. If you cant get a contractor to go with you, there are guides to estimate rehab costs until you can get some solid numbers from a contractor. I normally do a rough estimate alone prior to the offer, then have a contractor quote it in option period - honestly I dont even do that anymore, I just go a little more detailed into the numbers and make sure they are around what my contractor normally charges. Then after closing I will give him the number that I was thinking for the rehab.