Question on finding contractor bids

[Mary Ainsworth]

Question on finding contractor bids

So I'm planning to start touring/putting in offers on properties in Tuson and I'm wondering - do I find the contractors I'm going to ask for bids from before I put in an accepted offer? Or do I ask contractors for bids after I get in escrow?

Should I try to get a contractor to walk the property with me before I put in an offer?

Last, how do you approach contractors when asking for a bid?

Thanks!

[Andrew Postell]

@Mary Ainsworth some of this will be dependent on your strategy. Are you focusing on properties that are listed on the MLS? Or "off market"? If you are focusing on properties on the MLS your contract will give you an "option period". That "option period" will provide you time to get your contractors out there. Basically, this is to protect your deposit/earnest money. If the rehab bid comes in too high for the deal to work, you can back out and get your "earnest money" back. You just have to make the decision within your "option period".

Now, if your strategy is to purchase homes "off market" (which is how most of us do it) then you're going to be in a different boat.  If you are self-sourcing your own deals you'll have more of an opportunity to have a contractor come out without losing any money.  But if you are purchasing through a wholesaler, then you'll need to come up with your rehab on your own before you go under contract.  You can certainly get a rehab number later, but there is no "option period" with wholesale deals.  If you back out of the contract, you will lose your deposit money.  So it's really important to be able to come up with a budget beforehand going this route.

Oh, and in EITHER strategy you should 100% have your contractor/contractors picked out before hand.  You should take this as a requirement.

Hope all of that makes sense.  Thanks!