Paying Contractors Upfront
Hello,
I’m fairly new to real estate investing and wanted to see how everyone typically structures payments with contractors on rehab projects.
What do you consider normal? Small deposit upfront? Pay for materials upfront and labor as work is completed? 50% upfront and 50% at completion? Or progress payments based on completed work?
I understand every contractor and project is different, but I’m trying to get a feel for what’s considered standard and how other investors protect themselves while still being fair to the contractor.
For larger rehabs in the $30k–$50k range, how do you normally structure the payment schedule?
Thanks!