Hiring from craigslist?

[Nat C.]

I am staring renovations on a property this weekend.

It's only a 1400 sq ft house in good shape and requires cosmetic fixers.

I'm planning to rip up the lino and carpet and install tiles and repaint the entire interior and exterior.

I'm planning to be very hands on. I would like to hire guys off craigslist and put them to work. I will pay cash at the end of the day for their work. I know in this economy I will get lots of bites, I'm just wondering if people can offer advice on how to screen people, apart from the usual "be careful'.

The tilers I will be very picky with as that's an important job which can be stuffed up by someone who is incompetent. So I will be requesting photos of recent work and contactable references and even ask if I can view some of their recent jobs in person.

The painters I don't think I need to be too scrupulous about and will just ask about their experience and for 2 references I can contact.

I plan to bargain shop and buy all the materials and equipment myself.

Has anyone ever run a project in this fashion? Are there any red flags I should look out for?

[Mike Hurney]

@Nat C.  What's with the cash?

This came up at our REIA meeting last night. As I say with Asset Protection: "If you ain't got nuttin', you got nuttin' to lose" as in assets or equity.

Now I only hire people with insurance, workman's comp and a contract. I only pay them weekly or 1/3 down, 1/3 at half and 1/3 at the end.

I hired a gentleman for a roof and siding. I insisted they have insurance. They produced the binders. Everything worked out fine. Months later, when I spoke to him this past Monday he said he had just hired a 17 year old kid because he knew his father. The second day on the job the kid fell off the staging and broke a leg. The contractor saw him in a cast later that day and gave him $700. cash. Now the father wants $1000. Know where this is going?

At another project in Boston, Massachusetts I hired a Plumber friend and he said the insurance was OK. I asked for the binders and called his insurance company. They would only reissue if the entire premium was paid up front $1200. I paid it. The job went well and I deducted it from what I owed him. Everyone was happy.

Depends on your appetite for risk?

PS When I advertise I insist: "Must have own tools and Transportation!" (gets rid of the DWI folks)