Updated about 18 hours ago on . Most recent reply
Contractor problems — the #1 reason new investors fail on their first flip
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We've managed rehabs in 15 states. The single biggest mistake I see new investors make isn't the deal — it's the contractor. Bad contractors have killed more first flips than bad markets ever will. Here's what I tell every new investor I work with: • Never pay upfront! Never! Buy the materials and make sure they end up at Your house. • Always get a written scope of work before a single dollar changes hands • Inspect the work before releasing every draw payment • Have a backup contractor lined up before you start I learned most of this the hard way early on. Now it's just how we operate our hedge fund flips. What's your biggest contractor horror story — or your biggest fear about managing a rehab? Drop it below. Happy to share what I'd do differently based on 25 years of managing renovations remotely across the country. |