Investor vs Retail pricing from Contractors

[Randy F.]

Ive seen it mentioned here on BP that investors should not pay contractors "retail" pricing on rehabs? I'm interested in hearing the rationale for that. As an investor, are you getting special pricing from your contractors, and what incentive do your contractor have for giving you that pricing?

[Aaron McGinnis]

The biggest thing to bear in mind is that contractors hear, "If you do good and give me cheap rates, you'll see a TON more business from me!" like... every day. 90% of the people who say that are abject losers who will beat you around on pricing, be slow to pay, and hire you maybe once a year.

If you want reduced rates, don't expect them coming out of the gate. Give a little... get a little. Be prepared to do a few jobs before negotiating for the 'killer rates'