What to look for in a general contractor for BRRRR

[Srinija Boppudi]

Hi folks, I am attempting BRRRR for the first time and need some input on things to look for when selecting a contractor for rehab. What are some "must asks" and things to watch out for? Any input on tips to keep the contract simple and well-scoped? How should I structure Pay-outs? Thank you so much for your attention and participation!

[Jonathan Klemm]

Big question with a ton to unpack @Srinija Boppudi!   

One of my biggest tips is to have CLEAR scope of exactly what you are looking for before you engage a contractor.  Do you r own homework and don't rush...remember...slow is smooth and smooth is fast!

Consider doing all the normal vetting things like reviews, website, and referrals, but on top of all that go to the current project that the GC has going on. Another thing to consider asking for is POF to handle the project...so many GCs are robbing peter to pay paul and don't actually have the money needed to manage projects.

Lastly, if you are considering a 203k loan whatever you do PLEASE use a GC that has done one before...here in Chicago we get horror stories on a regular basis of people going with the bottom dollar GC and if you are in this for the long haul know that you get what you pay for so don't use the cheap guy!