{"id":171363,"date":"2024-05-01T10:18:40","date_gmt":"2024-05-01T16:18:40","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=171363"},"modified":"2024-05-23T04:35:53","modified_gmt":"2024-05-23T10:35:53","slug":"red-flags-to-avoid-with-contractors-and-how-to-escape-a-bad-hire","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/red-flags-to-avoid-with-contractors-and-how-to-escape-a-bad-hire","title":{"rendered":"Contractor Nightmares: 5 Red Flags to Watch For and How to Escape a Bad Hire"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC5730546325\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">What\u2019s easier to find, a unicorn or a rock star contractor?<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you asked most&nbsp;<\/span><span data-preserver-spaces=\"true\">value-add<\/span><span data-preserver-spaces=\"true\">&nbsp;real estate investors, the answer would be obvious: \u201cUnicorns, of course.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We all know the inherent value&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/when-to-use-general-contractors-as-a-real-estate-investor\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">contractors<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;bring to any real estate investment.&nbsp;<\/span><span data-preserver-spaces=\"true\">A great contractor can help you reduce&nbsp;<\/span><span data-preserver-spaces=\"true\">costs on renovations<\/span><span data-preserver-spaces=\"true\">, save money on holding costs with quick turnarounds, and manage the project with limited guidance.<\/span><span data-preserver-spaces=\"true\">&nbsp;The&nbsp;<\/span><span data-preserver-spaces=\"true\">end<\/span><span data-preserver-spaces=\"true\">&nbsp;result, of course, is a beautifully renovated property that gets finished on time and brings in a big payday.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Reality often paints a very different picture. Headaches, delays, and disappearing acts are commonplace.&nbsp;<\/span><span data-preserver-spaces=\"true\">Investors are always looking for contractors because they&nbsp;<\/span><span data-preserver-spaces=\"true\">either<\/span><span data-preserver-spaces=\"true\">&nbsp;assume that all contractors are&nbsp;<\/span><span data-preserver-spaces=\"true\">created equal or&nbsp;<\/span><span data-preserver-spaces=\"true\">simply<\/span><span data-preserver-spaces=\"true\">&nbsp;don\u2019t know what to look for.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In either case, the quality of your contractor can make or break the deal.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Whether you&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/tips-for-flipping-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">fix and flip<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;or&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/buy-and-hold-rental-property\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">buy and hold<\/span><\/a><span data-preserver-spaces=\"true\">, properly vetting and hiring reputable contractors is a muscle you want to (pardon the pun) build. Here\u2019s what you need to know about bad contractors and how to find good ones.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to Spot a Bad Contractor<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Sleepless nights. Endless delays. Excuses. Theft. The list goes on and on.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">more or less<\/span><span data-preserver-spaces=\"true\">&nbsp;summarizes my experience with the first contractor I hired as an out-of-state investor.<\/span><span data-preserver-spaces=\"true\">&nbsp;Everything that could go wrong went wrong.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here\u2019s the gist of the story: The contractor promised a one-month turnaround time on a gut job at a bargain price, so I decided to give him a shot. Week after week, he would mention all the progress&nbsp;<\/span><span data-preserver-spaces=\"true\">that was<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">being made<\/span><span data-preserver-spaces=\"true\">\u2014yet all he sent pictures of was the framing, plumbing, and electrical.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">All were done<\/span><span data-preserver-spaces=\"true\">&nbsp;incorrectly and without permitting, so the town shut down the project. We had to start from scratch and redo everything.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The kicker? He stole $15,000 and stopped responding to calls and texts.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">After applying for permits and getting a new contractor, we&nbsp;<\/span><span data-preserver-spaces=\"true\">ended up<\/span><span data-preserver-spaces=\"true\">&nbsp;behind on the project&nbsp;<\/span><span data-preserver-spaces=\"true\">by two months<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;If I had&nbsp;<\/span><span data-preserver-spaces=\"true\">paid attention to<\/span><span data-preserver-spaces=\"true\">&nbsp;the red flags from the beginning, this project would have finished two months earlier, with less stress.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pay close attention to these five warning signs.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. <span data-preserver-spaces=\"true\">Lack of licensing<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some contractors subcontract work to unlicensed professionals to save on costs or pocket more for themselves.&nbsp;<\/span><span data-preserver-spaces=\"true\">While&nbsp;<\/span><span data-preserver-spaces=\"true\">it may be tempting to hire<\/span><span data-preserver-spaces=\"true\">&nbsp;an unlicensed contractor for a lower price, the risk is usually not worth the savings.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Depending on the jurisdiction, there are many components of a renovation that may require permitting. You\u2019ll need&nbsp;<\/span><span data-preserver-spaces=\"true\">to have<\/span><span data-preserver-spaces=\"true\">&nbsp;a specialist in that field willing to put their name on the line and stand behind the work completed. If done incorrectly or&nbsp;<\/span><span data-preserver-spaces=\"true\">if<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">permits weren\u2019t pulled<\/span><span data-preserver-spaces=\"true\">, the jurisdiction can tell you to start over\u2014there goes all that time and money out the window if you don\u2019t follow the&nbsp;<\/span><span data-preserver-spaces=\"true\">right<\/span><span data-preserver-spaces=\"true\">&nbsp;steps.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Make sure that<\/span><span data-preserver-spaces=\"true\">&nbsp;the contractor and team members used on the project (such as electricians and plumbers) are licensed.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. <span data-preserver-spaces=\"true\">Unrealistically low bids<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Another red flag to look for in a contractor is an abnormally low bid. We all want to save money, but that\u2019s how they reel you in.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Don\u2019t let cheap prices fool you. They usually come at a hidden cost. Unethical contractors know property owners&nbsp;<\/span><span data-preserver-spaces=\"true\">are looking<\/span><span data-preserver-spaces=\"true\">&nbsp;to cut costs, so they\u2019ll provide cheap labor and cut corners to land the job.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Be sure to review bids against your required scope of work to&nbsp;<\/span><span data-preserver-spaces=\"true\">make sure<\/span><span data-preserver-spaces=\"true\">&nbsp;you\u2019re&nbsp;<\/span><span data-preserver-spaces=\"true\">being charged<\/span><span data-preserver-spaces=\"true\">&nbsp;for everything you need.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As mentioned,<\/span><span data-preserver-spaces=\"true\">&nbsp;a&nbsp;<\/span><span data-preserver-spaces=\"true\">contractor I worked with bid significantly less than the next. Naturally, I gave him a shot.&nbsp;<\/span><span data-preserver-spaces=\"true\">All<\/span><span data-preserver-spaces=\"true\">&nbsp;the work was done incorrectly, and I had to hire a more expensive contractor to fix their mess.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">In the end<\/span><span data-preserver-spaces=\"true\">, it cost me significantly more to complete the project because I thought I was saving money.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. <span data-preserver-spaces=\"true\">Poor communication&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">No investor wants to deal with a contractor&nbsp;<\/span><span data-preserver-spaces=\"true\">who randomly disappears<\/span><span data-preserver-spaces=\"true\">&nbsp;throughout their renovation. Contractors who go MIA put your project at risk and delay return on investment.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">You can&nbsp;<\/span><span data-preserver-spaces=\"true\">usually<\/span><span data-preserver-spaces=\"true\">&nbsp;tell whether a contractor is a good communicator&nbsp;<\/span><span data-preserver-spaces=\"true\">in your first interaction<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;If they don\u2019t follow up after your initial call, respond slowly, or lack attention to detail, expect them to treat your renovation the same way.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s also important to pay attention to a contractor\u2019s written communication, or lack thereof.&nbsp;<\/span><span data-preserver-spaces=\"true\">If a contractor is hesitant<\/span><span data-preserver-spaces=\"true\">&nbsp;to put terms in writing, either through a contract or email<\/span><span data-preserver-spaces=\"true\">, be careful<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\">&nbsp;may indicate they don\u2019t want to leave&nbsp;<\/span><span data-preserver-spaces=\"true\">behind<\/span><span data-preserver-spaces=\"true\">&nbsp;a paper trail, which could be&nbsp;<\/span><span data-preserver-spaces=\"true\">useful<\/span><span data-preserver-spaces=\"true\">&nbsp;in future disputes.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. <span data-preserver-spaces=\"true\">High upfront deposits<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Contractors usually ask for a certain amount of cash upfront before&nbsp;<\/span><span data-preserver-spaces=\"true\">getting started on<\/span><span data-preserver-spaces=\"true\">&nbsp;renovations. That\u2019s normal.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However,&nbsp;<\/span><span data-preserver-spaces=\"true\">you should not<\/span><span data-preserver-spaces=\"true\">&nbsp;have to come out of pocket for more than a week or two of material and labor at one time.&nbsp;<\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\">&nbsp;gives&nbsp;<\/span><span data-preserver-spaces=\"true\">them<\/span><span data-preserver-spaces=\"true\">&nbsp;enough to get started but holds the contractor accountable&nbsp;<\/span><span data-preserver-spaces=\"true\">for the work<\/span><span data-preserver-spaces=\"true\">. And in a worst-case scenario, you won\u2019t lose everything if they run away with it.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When distributing funds, make sure that it aligns with the scope of work<\/span><span data-preserver-spaces=\"true\">, and check<\/span><span data-preserver-spaces=\"true\">&nbsp;that the contractor can provide receipts for their purchases. You can also try negotiating a lower price by providing materials and making it easier for your contractor to get started. That way, you don\u2019t get&nbsp;<\/span><span data-preserver-spaces=\"true\">up<\/span><span data-preserver-spaces=\"true\">&nbsp;charged for materials, and you can guarantee that the correct materials are being used on your project.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. <span data-preserver-spaces=\"true\">Lack of reviews and references<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Contractors with one- or two-star reviews\u2014or no reviews&nbsp;<\/span><span data-preserver-spaces=\"true\">at all<\/span><span data-preserver-spaces=\"true\">\u2014are difficult to trust. Sometimes, contractors who have had their licenses revoked or&nbsp;<\/span><span data-preserver-spaces=\"true\">been sued<\/span><span data-preserver-spaces=\"true\">&nbsp;by previous customers will dissolve their previous companies and reestablish them under a new name.&nbsp;<\/span><span data-preserver-spaces=\"true\">No reviews could also&nbsp;<\/span><span data-preserver-spaces=\"true\">simply<\/span><span data-preserver-spaces=\"true\">&nbsp;be a sign that they aren\u2019t as experienced in their field and have had difficulty obtaining customers&nbsp;<\/span><span data-preserver-spaces=\"true\">in the past<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Whether a contractor has online reviews&nbsp;<\/span><span data-preserver-spaces=\"true\">or not, they should&nbsp;<\/span><span data-preserver-spaces=\"true\">definitely<\/span><span data-preserver-spaces=\"true\">&nbsp;have at least a few references.<\/span><span data-preserver-spaces=\"true\">&nbsp;If&nbsp;<\/span><span data-preserver-spaces=\"true\">they\u2019re unable to<\/span><span data-preserver-spaces=\"true\">&nbsp;provide even one, they\u2019re probably not someone you want to work with. Contractors&nbsp;<\/span><span data-preserver-spaces=\"true\">who are<\/span><span data-preserver-spaces=\"true\">&nbsp;confident in their services are more than happy to share references who can speak to the quality of their work.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What to Do If You\u2019re Already Stuck with a Bad Contractor?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you&nbsp;<\/span><span data-preserver-spaces=\"true\">come across<\/span><span data-preserver-spaces=\"true\">&nbsp;these strategies once you\u2019ve&nbsp;<\/span><span data-preserver-spaces=\"true\">already<\/span><span data-preserver-spaces=\"true\">&nbsp;started working with a bad contractor, you\u2019re probably asking yourself, \u201cNow what?\u201d<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It can be&nbsp;<\/span><span data-preserver-spaces=\"true\">difficult<\/span><span data-preserver-spaces=\"true\">&nbsp;to let a contractor go once you\u2019ve&nbsp;<\/span><span data-preserver-spaces=\"true\">already<\/span><span data-preserver-spaces=\"true\">&nbsp;signed a labor agreement and made payments. You\u2019re not stuck, though. Here are some options to explore.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Align on expectations<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">You can try<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">having a conversation<\/span><span data-preserver-spaces=\"true\">&nbsp;to align on expectations and see how they respond.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The first thing you want to do is eliminate or at least minimize opportunities for tension.&nbsp;<\/span><span data-preserver-spaces=\"true\">If&nbsp;<\/span><span data-preserver-spaces=\"true\">there\u2019s no way you can<\/span><span data-preserver-spaces=\"true\">&nbsp;get out of the work contract, let them finish the job.<\/span><span data-preserver-spaces=\"true\">&nbsp;However,&nbsp;<\/span><span data-preserver-spaces=\"true\">remain<\/span><span data-preserver-spaces=\"true\">&nbsp;observant and verify their work processes.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">You can do this by creating project checkpoints, where you can manually verify that the work is being done correctly before going further. If they fail to complete work on time or in compliance with local regulations, you may be able to end the contract early.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In some cases, letting the contractor complete the job would&nbsp;<\/span><span data-preserver-spaces=\"true\">put<\/span><span data-preserver-spaces=\"true\">&nbsp;your property and investment&nbsp;<\/span><span data-preserver-spaces=\"true\">at risk<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;If you find yourself in this position, contact your state\u2019s licensing board and file a formal complaint. The mere mention of a complaint may be enough to get the contractor to get their act together.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Move on and start&nbsp;<\/span><span data-preserver-spaces=\"true\">fresh<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Another option is to try to get out of this as quickly as possible rather than hoping things will get better\u2014they probably won\u2019t.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Start exploring additional contractor options. Get bids with timelines to see how early they can get started.&nbsp; After vetting and verifying your new contractor, it\u2019s time to have a&nbsp;<\/span><span data-preserver-spaces=\"true\">hard<\/span><span data-preserver-spaces=\"true\">&nbsp;conversation with the contractor you plan on replacing.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">No matter how difficult it can be to stay composed, you want to come off as professional.&nbsp;<\/span><span data-preserver-spaces=\"true\">Tell them the reasons for the change<\/span><span data-preserver-spaces=\"true\">, and make sure to<\/span><span data-preserver-spaces=\"true\">&nbsp;agree to payout terms as needed. You\u2019ll also want to&nbsp;<\/span><span data-preserver-spaces=\"true\">put<\/span><span data-preserver-spaces=\"true\">&nbsp;this in an email recap after the conversation to have a paper trail.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to Find a Trustworthy and Reliable Contractor<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Every real estate investor should know how to identify red flags in a contractor. However, even the most experienced investor is capable of missing a few. Here are five strategies&nbsp;<\/span><span data-preserver-spaces=\"true\">you can use<\/span><span data-preserver-spaces=\"true\">&nbsp;to prevent contractor red flags from slipping through the cracks.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Only<span data-preserver-spaces=\"true\">&nbsp;hire a licensed contractor<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Working with an unlicensed contractor is always risky. Even when an unlicensed contractor can do a good job, they may not have the right insurance&nbsp;<\/span><span data-preserver-spaces=\"true\">in place<\/span><span data-preserver-spaces=\"true\">&nbsp;to protect you or your property if something were to go wrong. Minimize the chance of project delays and noncompliance fees by making licensing a priority.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Ask previous customers<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">While it is an extra step in the hiring process, reaching out to previous customers is necessary when bringing on a new contractor.&nbsp;<\/span><span data-preserver-spaces=\"true\">Following up with references and checking online resources<\/span><span data-preserver-spaces=\"true\">, such as<\/span><span data-preserver-spaces=\"true\">&nbsp;the BBB and Angie\u2019s List<\/span><span data-preserver-spaces=\"true\">,&nbsp;<\/span><span data-preserver-spaces=\"true\">will help you gauge customer satisfaction.<\/span><span data-preserver-spaces=\"true\">&nbsp;You should also call or email references directly to get a more personal account of the contractor\u2019s work ethic and expertise.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Get referrals<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\">&nbsp;is similar to the previous point\u2014the only difference is that you\u2019re going to people you already know. Asking friends, family,&nbsp;<\/span><span data-preserver-spaces=\"true\">your real estate agent<\/span><span data-preserver-spaces=\"true\">, and others you trust is the best way to find contractors.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Real estate investing is highly relationship-based. Those around you want to maintain a positive relationship so that you can continue working together in the future.&nbsp;<\/span><span data-preserver-spaces=\"true\">As such, these people&nbsp;<\/span><span data-preserver-spaces=\"true\">are the most likely to<\/span><span data-preserver-spaces=\"true\">&nbsp;give you honest reviews.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Check litigation history<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Knowing if a contractor has ever been taken to court by a customer can save you a&nbsp;<\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\">&nbsp;headache in the future.&nbsp;<\/span><span data-preserver-spaces=\"true\">Many municipalities make&nbsp;<\/span><span data-preserver-spaces=\"true\">it easy to search<\/span><span data-preserver-spaces=\"true\">&nbsp;a company\u2019s court history by publishing courthouse documents online.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">When searching for lawsuits, check your contractor\u2019s full name,&nbsp;<\/span><span data-preserver-spaces=\"true\">the name of their company<\/span><span data-preserver-spaces=\"true\">, and any DBAs associated with their business.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Vet thoroughly and take your&nbsp;<\/span><span data-preserver-spaces=\"true\">time<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Outsourcing work is a&nbsp;<\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\">&nbsp;part of the real estate investment journey. As you begin to scale, you\u2019ll need to hire professionals&nbsp;<\/span><span data-preserver-spaces=\"true\">for tasks<\/span><span data-preserver-spaces=\"true\">&nbsp;you may not have the time or expertise to complete.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-find-keep-good-contractors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">It\u2019s better to hire slowly than hire<\/span><span data-preserver-spaces=\"true\">&nbsp;the wrong person from the start.<\/span><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">As soon as you see one of these red flags in a contractor, run as fast as you can in the opposite direction.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Hiring the wrong person for the job can easily double your renovation expenses and push out your renovation timeline by weeks if not months. They say someone else\u2019s mistakes are the best teacher.&nbsp;Don\u2019t make the same mistakes I made.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_f73a037ba3e69f9b478271869215fb96\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_ee6c3cc0678fdefbf901fb1db97b2b41\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_4d81246865791ce7983427cf6ac8a76f class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/agent\/match\"\n        x-on:click=\"window.analytics.track('Blog Block | B2C Marketplace Agent Finder', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/red-flags-to-avoid-with-contractors-and-how-to-escape-a-bad-hire',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/signup\"\n        x-on:click=\"window.analytics.track('Blog Block | Acquisition | Free Membership Signup', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/red-flags-to-avoid-with-contractors-and-how-to-escape-a-bad-hire',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>What\u2019s easier to find, a unicorn or a rock star contractor? If you asked most&nbsp;value-add&nbsp;real estate investors, the answer would be obvious: \u201cUnicorns, of course.\u201d We all know the inherent [&hellip;]<\/p>\n","protected":false},"author":159074,"featured_media":171367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7400,7119],"tags":[],"class_list":["post-171363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-building-team","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/171363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/159074"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=171363"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/171363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/171367"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=171363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=171363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=171363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}