Question for Out-of-State Investors: Why Do Contractors Need to Be Part of Your Team?
I am preparing to invest out of state and am trying to understand how important it really is to build relationships with independent contractors before buying a property.
A lot of investor advice says you need a strong “team” that includes a realtor, lender, property manager, inspector, attorney/CPA, and contractors. But when I look at property management companies, many seem to have their own preferred vendors or contractors that they are required to use for maintenance, turnovers, repairs, and emergencies.
At first glance, that makes me wonder: why do I need to separately build my own contractor relationships if my property manager already has contractors in place?
For those who invest remotely:
- Do you keep your own contractors as a backup or second-opinion option?
- Do you use your property manager’s vendors for normal repairs but bring in your own people for larger projects?
- How do you avoid inflated repair costs, poor-quality work, or maintenance markups when you cannot inspect everything in person?
- Is it realistic for a new out-of-state investor to build a contractor network before owning a property, or does that come later?
I understand the value of having options and not being dependent on one company, but I would like to hear how experienced out-of-state investors actually structure this.
Most Popular Reply
- Property Manager
- Royal Oak, MI
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Many PMCs only handle maintenance, NOT major renovations.
Some, like us, have had our clients drag us into doing renovations because local contractors screwed them once they found out they were OOS and unable to effectively monitor the jobsites.
So, it depends on the condition of the properties you plan to buy.
- Drew Sygit
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