Hiring and dealing with contractors seems to be one of the top issues on BP for rehabbers.
I will share some thoughts from both sides as i am a rehabber who was also a contractor and who still does some extra work when i have time.
Rehabbers and contractors or handymen or whoever you are hiring to work on your projects have conflicting priorities. Let's face it,the rehabber wants to get the best quality work done at the lowest price. The guy doing the work is trying to make the most possible money doing the least amount of work.
Being a residential contractor in anything. Be it plumbing,painting,drywalling or whatever is a tough business. If you do it legally and get all the insurance and pay all the taxes that you are supposed to ,you are then up against the people in the industry who don't, and there are a fair amount of those. This gives the under the radar bunch a competitive advantage in a market that almost completely driven by price.
Rehabbers on the other hand are trying to keep costs as low as possible because it is already hard finding properties at the price point were you can make any money when adding in Realtor and closing fees which generally add 8-10percent to the equation.
Would love to here others opinions on the topic.
Thanks and have a great day.
you are right I think - so the object is to align those interests. the best way, it appears is to me, is to have a partnership on the project with one person the GC and the other the money/admin/finder of deals - that seems to work well, and that is something I am looking for myself - it makes it a win-win, and if everyone has skin in the game, everyone will be doing their best. but there is the finding and proving of trust period that has to come first and that is tricky?
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing