rehab process question

[Richard Robinson]

I just purchased my first property and Im starting the rehab process.  My contractor wants 50% on the estimated materials cost and labor up front which equals about 20k. My concern is how do I protect my investment, I mean he has a contract but I do not.  Any suggestions on how I should proceed would be greatly appreciated.

Thanks,

[Nathan Gesner]

Quote from @Richard Robinson:

Use a reputable contractor that's been around a while, is licensed and insured, and can provide you with recent evidence/reviews.

Set checkpoints along the way where you can inspect and approve the work, then cut the next check. I'm a big fan of 30/30/30/10: 30% up front, 30% halfway through, 30% when the work is complete, and the final 10% when it passes inspection.