Skip to content
Two investors reviewing resources on a laptop

Get industry-leading resources — for free

Unlock resources for every investing strategy and stage with a free account.

By continuing, you agree to BiggerPockets LLC's Terms of Use and Privacy Policy

Followed Discussions Followed Categories Followed People Followed Locations
Rehabbing & House Flipping
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

User Stats

1
Posts
1
Votes
Caleb Hardesty
  • Beaumont, TX
1
Votes |
1
Posts

Paying Contractors Upfront

Caleb Hardesty
  • Beaumont, TX
Posted

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!

Loading replies...