Flippers!! I am new to real estate investing and I had a question regarding finding contractors. What is your #1 way to find contractors for a job? I know there is Angie's List and Yelp online, do you have a preference between the two? Are there any red flags I should look out for that may not be obvious to someone new? Thank you so much for your help!
Add on: If anyone knows of good contractors in the Shreveport/Bossier City area let me know!
HI @Edward Maruna ! Welcome to BP and the wild world of flipping homes!
I personally steer clear of Angie's List, Yelp, BP Vendor, Dave Ramsey Select Vendors, or any other service that charges the vendor for membership and then promotes the list to the public as if trust, excellence, and performance have ANYTHING to do with the list selection. All of these sponsorships are based on MONEY. The ones that pay are the ones that are "featured, trusted, etc". This muddies the water when it comes with vendors who are reputable versus vendors who pay to be promoted.
Red flags would be: 1. Are they a contractor? If so, red flag!
Kinda kidding with that one, but seriously . . . stop right now and read @Jay Scott's book The Book on Flipping Houses before you get one under contract and tie up money in one. You'll want to have a process laid out before you venture into business with any contract, and Jay's example of draw schedules and agreements with the GC before the construction begins are awesome!
Good luck, and even better preparedness,
Will said it nicely. There's really no great single way of finding a great contractor. If you're new to the world of construction it'll be especially difficult. The best way I've found so far is to get recommendations from friends and other investors. I'll want to some past work the contractor has done, get references (and call those references), look up any reviews they might have, stalk them on facebook, literally anything you can find that shows you a tell about their character.
I come from a multi-billion dollar general contractor and they do the same thing. First thing, lets see your past work then your reputation, then your price. I just finished my first flip and I built my list of contractors very high. For each individual trade, I had 40 different contractors on the phone. Considering I needed 6 different trades, I called 240 different contractors. Might be over the top, but the faster you put systems into place, the more efficient your business will be!
First and foremost, ask for reccomendations from investors. Next here's some places I would look: Thumbtack, facebook groups, yelp, craigslist. The important part isn't where you find them, it's how you vette them!