When Should You Reach Out to a Contractor?

[Mikael Winkler]

Hello all,

I'm a new(er) investor looking at tackling more renovation projects in the near future. Right now, I'm working on setting up some systems to manage projects effectively, as I do work full-time. I view it as setting up the foundation before jumping in. I do have one rental and pretty much followed the "just do it" mindset that many swear by, with that property. It did end up working out, as it's now a great income producer. 

However, I had no systems in place to work effectively with contractors, which I'm trying to remedy this time around. I'm really wondering when in the process I should begin reaching out to contractors for bids on project SOW? Not really HOW I should be working with contractors, but more when to bring them into the process. With most solid properties going in a matter of days (or hours), it doesn't seem feasible to try and get 3-5 different contractors through the property for a bid before even making an offer. Even once in contract, is it really reasonable to get multiple contractors through when dealing with the contract timelines? I would love to start reaching out to contractors now, but without having a project on the table, I can't imagine anyone is going to take me very seriously. And I wouldn't blame them.

It seems to me that it comes down to being able to at least have enough knowledge of what you're looking at yourself to know you're not buying something with terrible, deal-breaking, hidden issues. Buy the property, then bring in contractors for as many bids as your heart's desire.

Am I off base with this thought? You may be thinking "why not reach out to the contractors you worked with previously?" That whole "just jump in" thought led to me making some pretty inexperienced, poor decisions in the contractors I hired. I'm really looking to start fresh, equipped with a more thorough plan. Any input or suggestions are certainly appreciated!