Multifamily investors in need of capital improvement specialists?

2 Replies

Maximizing your ROI is important when buying distressed value-add multifamily properties.

The contractors you hire are key to a successful return.

As an investor, what route do you take to find the right contractors?

@TJ Simon

Think of who are the customers for contractors. You need to connect with these customers and ask for referrals. Also if you're looking locally, drive around the area, and if you see properties that look the part because of a recent reno reach out to owners and ask who did their renovations.

Last but not least, if you find quality contractors, you can potentially offer them to be partners to obtain their greater interest in the success. 

@TJ Simon Literally, ask any of the folks investing in your niche and you will find a plethora of contractor names. The only issue is going to be that nobody has a good contractor story i.e. it's a thankless job and the customers are never satisfied. Some of the contractor hate is deserved and some not. 

I wouldn't pay contractors to partner up unless I was doing smaller deals, doing deals for the first time or highly distressed deals where I need a specialty contractor. After all, why pay to partner when you can pay for a similar service in the open market at competitive rates?