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Updated over 5 years ago on . Most recent reply
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What are "investor friendly" contractors?
I keep reading the terms "investor friendly" contractors or "investor friendly" prices for work performed. I've read this in a few different books on real estate investing but also in the the same books, they say to find the best reputable tradesmen. Aren't the best tradesmen going to charge the highest prices? Seems kind of a contradicting concept.
or is there situations where somebody does awesome work at low prices?
Most Popular Reply
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Contractors typically spend a large portion of their overhead costs doing two things:
1. Marketing
2. Visiting prospective clients to give bids
Having the opportunity to do a lot of work for an investor can mitigate these expenses. If a contractor is booked 100% of their time working for an investor and his colleagues, that contractor is saving a LOT of money and time by not having to market or go out on bid appointments.
And many contractors are happy to take that savings that their generating by having a steady investor client and use it to reduce their prices to that investor.
In the end, the investor gets better prices, the contractor makes as much (or more money) and the contractor doesn't have to spend time and energy focusing on those things that aren't his core competency (like marketing and sales).
Win/win.