What is the best way to find contractors?

Question

I have found a home I'd like to make an offer on but I have yet to determine how much it will cost to repair/update. Is there a forum here, vendor list here, or method of finding reliable contractors in the DMV area? Do I need to start cold calling off of signs I see? What does someone like me even say?

Account Closed · Answer

If you go to Home Depot about 6 am, you can meet lots of home improvement folks and contractors there picking up material for their jobs, get their cards, their number off their trucks. Meet them, tell what you need, ask for a estimate.Check them out very carefully, don't let them get ahead of you on their money draws.Good luck

Terry Beall · Answer

Hello Tamara,go under "education" in BP, and go to BP blog, go down about 1/2 page, and there are about 3 articles about rehab and contractors. Questions you should ask, etc. I think that will benefit you greatly.I will always used a licensed, insured, and bonded contractor, its called covering your assets!We should meet up 1/2 way maybe in Germantown! Good luck!

Matthew Paul · Answer

You are in Maryland , go to the md dept of license and regulation and look at the section for home improvement contractors . That will let you know the rules contractors must play by and you can check the status of their license ( or lack of ) . As far as penalizing a contractor , that doesnt happen when you are a small starting out investor .( md law requires the contractor to have specific verbage in their contract and penalties from the customer arent one of them ) Ask potential contractors if they will do investor work up front , save you and them time . As far as money up front , Maryland law , 1/3 at contract signing , 1/3 when you start the job , final 1/3 at time of completion . The customer has a 3 day right of recision after the contract is signed UNLESS the customer goes to the contractors place of business and signs the agreement .

Hugh Ayles · Answer

A lot of contractors want to get paid upon completion and that is fair. If there are milestone payments, I would base it on passed inspections and your confirmation of work complete.For instance, in Austin for plumbing we have rough in, top out, and final.If your project has a longer schedule, you might do bi-weekly draws. You will need to confirm work complete and be careful on billing ahead.You can have liquidated damages (penalties as you call them). They need to be based on something real such as carrying costs per month divided by days in a month. that would be your daily penalty for missing completion dates. This better be clearly spelled out in your subcontract or it is invalid.

Hugh Ayles · Answer

Some questions to ask:How long have you been in business?Do you do repair work or new installations? You may find a plumber who only wants to replace fixtures versus a plumber who will install new pipe for a new bathroom for example.Can I get a W9? This one will tell you very quickly fi they are legit or notDo you have your own crew or do you subcontract the labor?If you have your own crew, how many workers do you have or crews do you run? This lets you know if they can handle more than one job at a time.Get a list of references as well as addresses for projects completed.This next one is not a question, just an observation. Do they have a company truck with a company logo? This si one step towards being more legit.As a follow up on the vehicle, what condition is it in? If the truck is pretty beat up, what type quality of work do you suppose they will do?Let them know your pay terms and see if they are OK with that.There are more questions, but this will get you started.

Clay Smith · Answer

Go over to J Scott's 123flip.com site and read his post. This site has a system for rehabbing. Get the contracts and documents to start off right. You will thank me.

Account Closed · Answer

It works sometimes, just need to talk to more contractors, I agree, I'd rather be sleeping while contractors are picking up their supplies.There are time when you can make an excellent contract. Best bet is to get referrals.Charles

Manolo D. · Answer

I love the home depot at 6am advice. hahaha, priceless. never works though, at best, shot or miss. I let my suppliers deliver their stuff, my time is much more valuable than free delivery. if they don't know that you could strong arm suppliers for a free delivery, maybe they're not as good as they say they are.

Tamara V. · Answer

Thank you @Hugh Ayles! Those are great questions. In terms of payment, I know enough not to pay upfront but what type of step payments or project milestones are good benchmarks? Also, what about penalizing contractors if certain benchmarks are not made? I've heard of this practice but not sure how common it is.I'm looking at Angie's List as well as Home Advisor for contractors and possibly Houzz. On Houzz and Home Advisor you can see pictures of their work.

Tamara V. · Answer

Thank you, everyone, for your input. I have found this to be the hardest part about getting established. What are the most important questions I should ask contractors beyond insurance coverage?