What is the best way to vet a contractor?

Question

We are submitting an offer on a fix and flip with a rough swag of rehab costs coming in at 75-80k. We are waiting for the home inspector to complete his analysis of this property to help us develope a scope of work that we can have when we do a walk through with a GC. Is this even the way to go about this? Are we doing this backwards? We have heard plenty of horror stories regarding contractors. How do we insure we are getting a reputable trustworthy one?

A lot of stuff here, sorry about that. Any advice would be greatly appreciated.

Jimmy Mozingo · Answer

That is great information Jenni. Thank you. We’re trying to piece all this together on the fly and I know we’re missing stuff. So this is the pause button while we reign it back in. I will also be reaching out to as we are looking for non-conventional money to fund this project.

Jenni Ellis · Answer

I would suggest looking at their reviews, ask for references. They may also have photos of their previous work. Price is important as an investor, but I definitely wouldn't go with the lowest bid, based only on price. (I'd factor that in, along with the other items I mentioned above.)

Also, if it is a property I want to write an offer on, I usually ask my contractor to come view the unit before I submit an offer. I pay them for their time, or their time gets factored into the repair work (if the offer gets accepted.) That way, I know how much money to factor in for repairs. Depending on their bid, it could drastically change my offer price, and how high I am willing to go during negotiations.