I am embarking in my first investment property and while it's daunting, it's also exciting. I would like to know a bit more on how flippers choose contractors that will actually take the job to the finish line and won't disappear half way with all the money. I know seasoned flippers do have their own team but what about someone that is just starting, is Yelp the way to go? Any piece of advice on getting high quality look for not top dollars is appreciated.
Flipper/Rehabber · San Antonio, TX · Member since 2017 · 101 posts · 73 votes
6y
@Giacomo Bugatti if you want good contractors, and still be able to make money flipping houses my first piece of advice would be: don’t find them online.
Steal them from other flippers (happens to me all the time)
Find them at Home Depot at 5am (best electrician I’ve ever had)
Talking to other investors? Idk...I can tell you this, I’ve never given my best guys to anyone else, I keep them for myself. (They still get poached all the time)
Every time I pay contractors ahead of schedule, I get screwed, my timeline goes to hell, and my wife yells at me (true story)
Flipper/Rehabber · Willow Grove, PA · Member since 2015 · 355 posts · 104 votes
6y
@Giacomo Bugatti - you can find 4-5 contractors and talk to them. Explain what you are doing and that you are looking for a long term relationship with repeat work. You can also ask other real estate investors for referrals.
I never pay a contractor or any worker (electrician/plumber/etc) upfront. If your house renovations will take 1-2 months to finish, one way to pay a contractor is 1/3 of the money up front, 1/3 of the money 70% done, 1/3 at then end.
Thanks @Michael Nyszczot! Where do you suggest me to find reputable contractors? Also, do you mean project managers with their own crew or hourly paid workers that I would manage? I don’t have a network of real estate investors to tap into here in Los Angeles
Flipper/Rehabber · Willow Grove, PA · Member since 2015 · 355 posts · 104 votes
6y
@Giacomo Bugatti -- you can research online and call contractors to interview them. I also recommend you join a local REIA. You can network with investors and some contractors go to these meetings as well.
Rental Property Investor · Richardson, TX · Member since 2019 · 120 posts · 82 votes
6y
@Giacomo Bugatti you need to vet contractors then watch them like a hawk during remodel. At the end of the day your leverage is not paying them til work is done and done correctly so DO NOT PAY BEFORE WORK IS DONE. if you do those things you might be ok.
Flipper/Rehabber · San Antonio, TX · Member since 2017 · 101 posts · 73 votes
6y
@Giacomo Bugatti if you want good contractors, and still be able to make money flipping houses my first piece of advice would be: don’t find them online.
Steal them from other flippers (happens to me all the time)
Find them at Home Depot at 5am (best electrician I’ve ever had)
Talking to other investors? Idk...I can tell you this, I’ve never given my best guys to anyone else, I keep them for myself. (They still get poached all the time)
Every time I pay contractors ahead of schedule, I get screwed, my timeline goes to hell, and my wife yells at me (true story)