bidding for contractors estimating repairs for potential flip

3 Replies

In general: school me.

Should I just look on yelp and start calling people up?

Thanks in advance for your input.

Updated 5 months ago

hmm, curiously some info got cut out of my original post... I'm making a few assumptions here, thank you for suffering me. I've been taught that on a rehab project you should get 3 contractor bids. Between these bids an investor should be able to determine a reasonable repair budget. As a wholesaler, I should do this to get solid repair numbers for a deal I plan on selling/assigning to a cash buyer/flipper. In general most seasoned flippers can get hard money %75ARV including repairs at %10 with 1 point; ARV - repairs = profits (loosely speaking). I've been told that many contractors offer free bids, but should I pay them anyway since I'm likely not gonna hire them for the work since I'm wholesaling the deal? Is there an etiquette I should be observing?

Reach out to a local REI group, either in person or on FB. There are plenty of investors and contractors who are in those circles. I assume you are investing remotely or are you just working on your first deal? Networking is key, regardless.