Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
BRRRR - Buy, Rehab, Rent, Refinance, Repeat
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

235
Posts
94
Votes
Mary Ainsworth
  • Lender
  • San Diego, CA
94
Votes |
235
Posts

Question on finding contractor bids

Mary Ainsworth
  • Lender
  • San Diego, CA
Posted


Question on finding contractor bids

So I'm planning to start touring/putting in offers on properties in Tuson and I'm wondering - do I find the contractors I'm going to ask for bids from before I put in an accepted offer? Or do I ask contractors for bids after I get in escrow?

Should I try to get a contractor to walk the property with me before I put in an offer?

Last, how do you approach contractors when asking for a bid?

Thanks!

  • Mary Ainsworth
  • Most Popular Reply

    User Stats

    8,037
    Posts
    6,399
    Votes
    Andrew Postell
    #1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
    • Lender
    • Fort Worth, TX
    6,399
    Votes |
    8,037
    Posts
    Andrew Postell
    #1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
    • Lender
    • Fort Worth, TX
    Replied

    @Mary Ainsworth some of this will be dependent on your strategy. Are you focusing on properties that are listed on the MLS? Or "off market"? If you are focusing on properties on the MLS your contract will give you an "option period". That "option period" will provide you time to get your contractors out there. Basically, this is to protect your deposit/earnest money. If the rehab bid comes in too high for the deal to work, you can back out and get your "earnest money" back. You just have to make the decision within your "option period".

    Now, if your strategy is to purchase homes "off market" (which is how most of us do it) then you're going to be in a different boat.  If you are self-sourcing your own deals you'll have more of an opportunity to have a contractor come out without losing any money.  But if you are purchasing through a wholesaler, then you'll need to come up with your rehab on your own before you go under contract.  You can certainly get a rehab number later, but there is no "option period" with wholesale deals.  If you back out of the contract, you will lose your deposit money.  So it's really important to be able to come up with a budget beforehand going this route.

    Oh, and in EITHER strategy you should 100% have your contractor/contractors picked out before hand.  You should take this as a requirement.

    Hope all of that makes sense.  Thanks! 

  • Andrew Postell
  • Loading replies...