Best way to hire contractors?

Question

I was supposed to be going into business with my brother. Unfortunately, he hasn't shown any initiative in the last 6 months to get his contractors license (red flag).
I'm from Chicago originally but I just moved back last year so my contact list has run pretty thin here.
If you were new to an area how would you go about finding and interviewing for the best flipping contractor in the area?
Would you use sites like Angies list or go off of reviews on google/yelp. Or is BP a good place to look and connect?

Thanks for your advice!

Marcus Auerbach · Answer

There are 3 types of contractors: the subdivision contractors, the builder contractor and the craigslist guys.

The first ones are great, cater to picky home owners and have staff and overhead, so they are expensive. The last one may or may not work out, watch your down payment and inspect quality frequently.

The middle segment is what I prefer to use; typically small crews or single guys, great quality, zero marketing and despite that they do a top job, they don't know how to handle spoiled housewifes in expensive subdivisions ;-)

They work for builders, but are often under a lot of pressure on price and quality - best way to find them is in new subdivsions. You can drive the same subdivision every day and will see different trucks every day. The rest is good old networking.

Chris Gantz · Answer

@Anthony Brancato

I’d reach out to professionals within the Real Estate industry such as local Realtors, Builders and Property Managers and ask if they know of anyone in the area doing the specific contracting you need. I’ve built a lot of solid relationships based on Realtor referrals. I guarantee if you ask a Realtor for a Referral they’ll open their black book to you because they know that good Karma goes a long way, and they’re hoping those contractors think of them first when their contractors get asked for referrals. Obviously reach out to a couple different professionals to get more than one biased opinion and do some due diligence before you call.

In my experience I’ve found Craigslist doesn’t always have the highest quality or most qualified options.

Marcus Auerbach · Answer

Consider their situation Lassy - most contractors are booked solid for weeks or months. Now a stranger calls, perhaps a little unsure what he wants, asking for a free estimate. For a contractor that means putting down the tools driving to meet someone, spening a couple hours answering questions (while he could be working) then spending more time writing up an estimate, only knowing that he is one of many and may never hear again from the owner... Why would you? Because you are the only guy who does not have work?

Why do you think the other 2 did not send you a quote after they spent time with you?

I think you have to make it easy for them, be prepared, give them a written SoW, ask for a verbal estimate on the spot and put it in writing only after you have selected a contractor. You may also offer to pay for their time to come out.

Crystal Smith · Answer

We use the following methods to find contractors: 1. Networking; 2. Driving around- If we happen to see someone on a job & we like the work we'll ask for their card. If the contractor's not there we'll contact the owner of the property. 3. Recently sold properties that have been renovated- When we pull comparables that include recently sold properties that have been renovated we may attempt to contact the owner and get a contractor referral. 4. Build Zoom

Jerrett Wilson · Answer

I have found contractors can be very hard to get ahold of as well! I have used google, angies list, Craigslist, and contacted located property managers. Out of 12 I reached out to, 6 responded, 3 showed up to the property, 2 offered quotes (other ghosted me), and one got the job based on positive reviews and better personality. The other that didn’t get the job was very arrogant and acted as if he was my boss. He was slightly cheaper but there were many reviews talking about his poor attitude and interacting with him proved that. I hope this helps. Just be persistent and don’t let contractors push you around or bully you. You’re paying them and they’re providing a service. It’s a two way partnership. Keep that in mind.

Good luck!

Casey Rolland · Answer

This is a Great Insight. I learned from my years of experience that Finding/Keeping a good contractor was extremely difficult. I had to kiss several ugly useless contractors before I found a good one.

Federico Gutierrez · Answer

Referrals, Ask around. Do some leg work. See if YOU can visit their jobs. NEVER pay more than 50% upfront. Try to pay for them enough to get them going, mostly materials cause they haven't started work so why pay for that?

You will get burnt so try to risk manage as best as you can.

Account Closed · Answer

Get multiple referrals, Hold them accountable by watching their work, offer a financial incentive if the work is done exceptionally well and ahead of schedule. (this is very good advice, trust me.)

Meryl McElwain · Answer

If any one of you needs a contractor in Chicago DM me and I'll give you my office number. I'm scheduling work now for the spring and summer. I prefer working with industry customers as opposed to retail because we can estimate you pretty quickly and come to an agreement.

Drew Heiss · Answer

Menards and Home Depot will have bulletin boards for contractors to hang their business card.

Best way to hire contractors?

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