I just started investing earlier this year and am working on my 2nd deal. The first deal was a "paint and carpet" so I was able to do most of the work myself. The deal I'm looking at now is a fire damaged home and needs a lot of work. I am having multiple contractors come out tomorrow to give me estimates.
-What kind of questions should I be asking the contractor's as we are doing the walk through
-Can/Should I always try to bargain with the contractor
-What sort of things should I NOT do so the contractor doesn't try to take advantage of me for my lack of knowledge
Thank you for reading
@Bosko Mijatovic I would check with your network of other investors to get contractors who are reliable. I am just completing my first flip in Berwyn, IL, and almost every contractor was a direct referral from another investor. They weren't all perfect, but I didn't have any horror stories either. The work was all done reasonably well, mostly on time, and I didn't have anyone run off with my money!
I would mostly focus on kitchens and baths when you are discussing the level of finish you will aim for. Drywall and paint are pretty much the same in a high end home, but the price point difference between laminate and quartz is significant. Higher end materials will require a GC to hire a sub with more skill, and even if you are GC'ing the project you will still have to find more specialized contractors.
I personally have not done a lot of bargaining with contractors. I normally don't use them if they are absurdly expensive. You will know who is out of line if you are getting several bids. Also, the market here in the Chicago suburbs is pretty strong, so most contractors are super busy!
Put together a "scope of work" of what you plan to do, and let the contractors do the talking. This will help you not sound too green when discussing this stuff!
Join the Largest Real Estate Investing Community
Basic membership is free, forever.