How do you vet investors to stop wasting time on free itemized estimates?
Contractor · Memphis TN · Member since 2026 · 12 posts · 9 votes
How do you vet investors to stop wasting time on free itemized estimates?
Most Popular Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesSpeaking as a long time general contractor, you just need to put your foot down. I charge $250 for a property walk through with a brief report.
You will not do as many walkthroughs, but you will get paid for the ones you do. And this weeds out the looky-loos and cheapskates. You do not want to do a remodel for them anyway.
23 Replies
- 2moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Dejuan Harvey:
Hi everyone, I’m a contractor from Memphis TN who is investor friendly and I'm running into an issue with real estate investors asking for free, fully itemized estimates upfront. I end up doing a ton of footwork, driving out to properties, meeting tradesman, and spending hours writing detailed line-item scopes, only for the investor to ghost me or use my bid to negotiate a price drop with a seller. One investor dragged this process out all the way until (we'll be starting next week when I close on the property). I want to work with investors, but I need to protect my time.
- How do you vet investors before driving out to a property?
- Do you charge a upfront diagnostic or estimating fee that rolls into the project if they sign?
- What qualifying questions do you ask to weed out the ARV chasers from the serious buyers?
I’d love to hear how other contractors handle this without burning bridges with potentially good clients. Thanks!
This usually happens with novice investors. It all boils down to prequalifying them upfront.
Ask about similar projects completed, who they currently use, what are they anticipating to spend, and what offers they currently have on the table.
I noticed, at least on the lending side, the ones that shop the most, do not have much experience. So it usually ends in an uphill battle of seeing who can get the most skinny, if you do not prequalify them first.
LuxePrivate Investments LLC 572 Reviews - 2moGreg ScottPro MemberRental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
I think that is a crappy way for someone to treat a contractor. Of course, if I were you, I would never work with any of those people. Unfortunately, they have probably told 5 friends about your great scoping work.
Here is an idea from an investor perspective. I would see this as something completely fair. Give them two options:
1) If they provide you a detailed scope of work, you could give you a quote on that scope. (FWIW, on complex projects I always create my own scope of work because when I get quotes, I want them to be as apples-to-apples as possible.) If someone sends you a scope of work from another contractor, I would simply refuse to quote it because that is the kind of idiot that you are trying to get away from.
2) If they want you to create the full scope of work, you could explain that you have been spending a lot of time scoping projects for people that have no intention of actually hiring you. You want to know they are serious. Charge them some amount to cover the cost of your time. Something like $250 should keep away the tire kickers, but the serious investors won't bat an eye. If they hire you, you could credit the job $250.
- 2moBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
Speaking as a long time general contractor, you just need to put your foot down. I charge $250 for a property walk through with a brief report.
You will not do as many walkthroughs, but you will get paid for the ones you do. And this weeds out the looky-loos and cheapskates. You do not want to do a remodel for them anyway.
- Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes2mo
Insist the investor provide you a detailed list of what they want done, as line items. (That request--up front--will eliminate many time-wasters.)
Next, using the list use ai to give you rough estimates, and personally edit those. Re-feed to ai and ask to produce a detailed estimate.
That should save you about 80% + of your time spent estimating.
Or, as others have mentioned, charge an inspection/written report fee, which can be credited back towards the job price.
- Contractor · Memphis TN · Member since 2026 · 12 posts · 9 votes2mo
Thank you all so much for taking the time to share your insights! Your advice on how to pre-qualify these investors, leverage AI to speed up my bidding process, and charging a fee will be a total game-changer. This gives me a clear strategy to stop chasing dead ends and start protecting my time. I really appreciate your expertise—this is exactly why the BiggerPockets community is so valuable! Glad I joined
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes2mo
Hey There @Dejuan Harvey - We are in very similar space as you here in Chicago.
It's funny because @Bruce Woodruff and I area always on the same page. We charge a fee of $197 to do a walkthrough and provide a feasibility report. The feasibility report provides a RANGE OF COST, not an exact number, because we can't tell someone an exact number without going through all the details
Then we charge a larger fee to prepare a LINE ITEM DETAILED PROPOSAL thats after we do a full material take off and work with the clients select finished materials.
Charging money is a bit scary, but it 100% weeds out clients that we wouldn't want to be working with anyway. Working in the investor space as a contractor is VERY VERY CHALLENGING because all projects are so time-constrained and price focused - be cautious and find quality people who value what you are bringing to the table as a renovation expert.
Quality Builders4.966 Reviews- 2moBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesExactly. I would do a property walk with brief report for the basic price...or property walk PLUS a detailed SOW AND follow-up phone calls for a higher price (Depends on size of house and grounds)
Quote from @Jonathan Klemm:
Hey There @Dejuan Harvey - We are in very similar space as you here in Chicago.
It's funny because @Bruce Woodruff and I area always on the same page. We charge a fee of $197 to do a walkthrough and provide a feasibility report. The feasibility report provides a RANGE OF COST, not an exact number, because we can't tell someone an exact number without going through all the details
Then we charge a larger fee to prepare a LINE ITEM DETAILED PROPOSAL thats after we do a full material take off and work with the clients select finished materials.
Charging money is a bit scary, but it 100% weeds out clients that we wouldn't want to be working with anyway. Working in the investor space as a contractor is VERY VERY CHALLENGING because all projects are so time-constrained and price focused - be cautious and find quality people who value what you are bringing to the table as a renovation expert.
- 2moJordan RayBusiness MemberReal Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 322 votes
Quote from @Dejuan Harvey:
Hi everyone, I’m a contractor from Memphis TN who is investor friendly and I'm running into an issue with real estate investors asking for free, fully itemized estimates upfront. I end up doing a ton of footwork, driving out to properties, meeting tradesman, and spending hours writing detailed line-item scopes, only for the investor to ghost me or use my bid to negotiate a price drop with a seller. One investor dragged this process out all the way until (we'll be starting next week when I close on the property). I want to work with investors, but I need to protect my time.
- How do you vet investors before driving out to a property?
- Do you charge a upfront diagnostic or estimating fee that rolls into the project if they sign?
- What qualifying questions do you ask to weed out the ARV chasers from the serious buyers?
I’d love to hear how other contractors handle this without burning bridges with potentially good clients. Thanks!
Welcome to BiggerPockets! As an investor, I can definitely see both sides of this. A detailed, line-item scope has real value, and if a contractor is spending several hours driving properties, meeting subcontractors, and putting together a comprehensive estimate, I don't think it's unreasonable to charge for that time. On the flip side, serious investors are often evaluating multiple deals at once, so paying several contractors hundreds of dollars on properties they may never buy can get expensive. One solution I've seen work well is offering a paid due diligence package that gets credited back if the project moves forward. That way, the investor knows you're serious, and you know they have some skin in the game. Another thing I'd recommend is asking more qualifying questions upfront. Have they already walked the property? Are they under contract? What's their expected closing date? Have they already established their renovation budget? Do they have proof of funds or financing lined up? Those answers will tell you a lot about whether they're actually ready to move forward. As someone who works with a lot of investors in Memphis, I can also say the best relationships are long-term. Once a contractor proves they communicate well, price fairly, and perform quality work, they usually become the first call on every future project. Likewise, investors who consistently close deals become the contractors' preferred clients. Strong relationships are a huge part of this business, and having the right boots-on-the-ground team—including a reliable contractor—is just as important as having an investor-friendly agent, property manager, and the right hard money and DSCR lending contacts. For investors using the BRRRR strategy, our local hard money lenders can often finance 100% of the purchase and 100% of the rehab, allowing many investors to get into deals with around $10,000 out of pocket before refinancing into long-term financing, so having a contractor you trust becomes even more valuable. Feel free to reach out, talk soon!
Jordan Ray - eXp Realty5111 Reviews- Contractor · Memphis TN · Member since 2026 · 12 posts · 9 votes2mo
- Contractor · Memphis TN · Member since 2026 · 12 posts · 9 votes2mo
@Jordan Ray Thanks for the thoughtful message and great insights! I really appreciate the advice on pre-qualifying. As a contractor, I'm actually stacking up capital right now to become an investor myself. I will definitely stay in contact. Talk soon!
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes2mo
Quote from @Dejuan Harvey:
Hi everyone, I’m a contractor from Memphis TN who is investor friendly and I'm running into an issue with real estate investors asking for free, fully itemized estimates upfront. I end up doing a ton of footwork, driving out to properties, meeting tradesman, and spending hours writing detailed line-item scopes, only for the investor to ghost me or use my bid to negotiate a price drop with a seller. One investor dragged this process out all the way until (we'll be starting next week when I close on the property). I want to work with investors, but I need to protect my time.
- How do you vet investors before driving out to a property?
- Do you charge a upfront diagnostic or estimating fee that rolls into the project if they sign?
- What qualifying questions do you ask to weed out the ARV chasers from the serious buyers?
I’d love to hear how other contractors handle this without burning bridges with potentially good clients. Thanks!
I am not a contractor. I'm a realtor that also invests and I have some preferred contractors that I work with. I'd say 25% of the clients we work with are investors & the new investors naturally want contractors to walk properties with them. So here's how we vet investor clients for our business, which then vets them to get any contractor referrls.
1. First thing is verify their proof of funds and/or pre-approval. If we can't verify it we will not work with that client or referr th
2. Once we verify they can close on a deal, & they identify a property they are interested in we run the numbers to verify the potential value of a property depending on the client's strategy- Fix and Flip or Buy and hold. And if enough information is provided on a property (pictures, disclosures,....) we will run our own preliminary numbers before spending any time going to look at a property with a client. If our analysis shows that the client can potentially hit their profit goals on a deal, then we may see the property with them. If they do not believe our numbers or want to go see the property anyway, we will drop them as a client. Bottom line- we've been doing this long enough to know what will work and will not work. NOt saying that we are 100% correct but....
3. If they agree with our numbers and want to go see a property and want a referral to a contractor that we have worked with in the past to walk the property we will provide the referral with instructions that they need to pay the contractor. Client's always ask how much they should pay the contractor and our message is that it's between you and the contractor, but please respect their time
4. We also tell them that in our experience once you close on a deal and use one of our contractors they generally will not charge you for future walk throughs, but you have got to close.
Again I'm not a contractor but that's how we vet our clients & protect the time of our contractor partners. - Member since 2025 · 68 posts · 28 votes2mo
One approach that seems fair for both sides is to separate a quick ballpark estimate from a detailed scope of work. A serious investor usually needs a rough number to evaluate whether a deal is worth pursuing, but a fully itemized estimate takes real time and expertise. Charging for a detailed scope and crediting that fee back if they move forward with the project can help filter out people who aren’t serious while still being investor-friendly.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2mo
Quote from @Dejuan Harvey:
Hi everyone, I’m a contractor from Memphis TN who is investor friendly and I'm running into an issue with real estate investors asking for free, fully itemized estimates upfront. I end up doing a ton of footwork, driving out to properties, meeting tradesman, and spending hours writing detailed line-item scopes, only for the investor to ghost me or use my bid to negotiate a price drop with a seller. One investor dragged this process out all the way until (we'll be starting next week when I close on the property). I want to work with investors, but I need to protect my time.
- How do you vet investors before driving out to a property?
- Do you charge a upfront diagnostic or estimating fee that rolls into the project if they sign?
- What qualifying questions do you ask to weed out the ARV chasers from the serious buyers?
I’d love to hear how other contractors handle this without burning bridges with potentially good clients. Thanks!
Ask them what they are budgeting for the project and do they have the money/financing in place. Also do a quick check and make sure they even own the project.
7e investments53 Reviews - 2moAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
The vetting and fee structure questions are more of a contracting business practice than a tax one, so I'll leave that to other contractors here who've dealt with this directly.
Where the tax side comes in, if you do start charging an upfront diagnostic or estimating fee, keep that income properly recognized when it's actually earned, not deferred until the project starts, since it's taxable the year you receive it regardless of whether the client ever signs the full job. If any of that fee gets waived or credited back to the client once they sign, document that credit clearly in your invoicing so your books reflect the actual net revenue rather than double counting the fee as separate income on top of the project total.
Happy to connect!
INVESTOR FRIENDLY CPA®5241 Reviews - 2moShiloh LundahlPro MemberRental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
@Dejuan Harvey this is a great question. I would treat experienced investors differently than new investors.
How are they finding you in the first place? How they find you may impact how you talk with them.
Investors want to make money. But they get paid last. Which means if their numbers are not correct and their expectations are not managed right then they will likely lose money and if they lose money and you make money they will go with someone else next time and it will be a one and done relationship.
If you have done similar deals then giving them a range of the cost, and explaining the reason for the range, may help them get an idea of what the cost would be. You can send them some before pictures and after pictures of some projects along with the total rehab costs so that they can have a pretty good idea may be helpful. Also, if a new investor wants you to walk a property, then charging new investors for a quote that you take off the cost of the project is a pretty reasonable expectation.
- 2moTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
I'm not a contractor, but have rentals. If someone is taking a significant amount of time to give me a quote and itemize everything (not talking about a 10 min walk through), I expect to pay them for their time. If it was a quick 5-10 min walk through with a verbal estimate, then I'd expect to pay less.
- Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes2mo
Quote from @Dejuan Harvey:
Hi everyone, I’m a contractor from Memphis TN who is investor friendly and I'm running into an issue with real estate investors asking for free, fully itemized estimates upfront. I end up doing a ton of footwork, driving out to properties, meeting tradesman, and spending hours writing detailed line-item scopes, only for the investor to ghost me or use my bid to negotiate a price drop with a seller. One investor dragged this process out all the way until (we'll be starting next week when I close on the property). I want to work with investors, but I need to protect my time.
- How do you vet investors before driving out to a property?
- Do you charge a upfront diagnostic or estimating fee that rolls into the project if they sign?
- What qualifying questions do you ask to weed out the ARV chasers from the serious buyers?
I’d love to hear how other contractors handle this without burning bridges with potentially good clients. Thanks!
Contractor for 34 yrs here, Im running a business. All customers are treated the same. Send me the prints (full planset with redstamp) in PDF & I'll send an estimate in 7-10 working days. Every customer gets 1 free estimate, only 1. There's too much work out there to entertain shoppers.
Any site visit (whether service call, consultation etc) has a $99 trip fee + $150 p/hr @ 2hr minimum i.e. $399 min. I also bill in 2/4/8 minimums. Time is an extremely valuable commodity, don't waste it.
In residential remodeling 2 of the biggest time wasters are investors & REA's. Don't get involved in a race to the bottom.
There's contractor forums that can help teach you how to run a successful contracting business. May want to check them out.
- Member since 2022 · 2 posts · 0 votes1w
I like your reply. It seems authoritative, wise, and direct.
- 2moBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
@Alan F. said it - 'time is a valuable commodity'. Yes, it sure is....
One of my favorite sayings is: "money is a renewable resource, time is not"
- Contractor · Memphis TN · Member since 2026 · 12 posts · 9 votes2mo
I understand I will definitely have to implement this into my business. Being new to the business side of this made it kind of uncomfortable to charge for the estimate. I also noticed investors saying "thank you for the itemized bid as all the other contractors gave a 1 number bid". That's probably why, because it was free. Doing the estimates this way is very time consuming @Bruce Woodruff great quote about money and time. @Alan F. I'm not trying to be in 1st place in the rat race to the bottom. @Shiloh Lundahl A few found me in a local Facebook group and some from word of mouth. @Ashish Acharya Appreciate the advice I sure haven't thought about the tax side yet. @Chris Seveney Thanks for posting your thoughts. @Ismael El Hamdouchi @Crystal Smith @Theresa Harris Thanks a lot, that's the fine line I've been walking
- Member since 2026 · 31 posts · 6 votes1w
The estimating fee can help, but I think the bigger issue is qualifying before the estimate ever happens. I’d want to know things like whether they’re under contract, their target timeline, who makes the final decision, and whether they already have a realistic renovation budget. That way you’re not spending an hour building a detailed scope for someone who’s still trying to figure out whether the deal works. Have you tried putting a short qualification step between the initial inquiry and the site visit?
- Investor · Pacific Northwest · Member since 2026 · 538 posts · 300 votes1w
Dejuan, I’d stop thinking of the detailed estimate as a free sales document. At the level you’re describing, it’s paid preconstruction work.
A clean model is two-stage:
Stage 1: qualification + feasibility. Before you ever drive out, ask: Are they under contract? What’s the closing date? What’s the rehab budget? Is financing/proof of funds in place? Who makes the final decision? What strategy are they running? How many similar projects have they actually closed? That alone will eliminate a lot of tire-kickers. Several people in this thread are basically pointing to the same thing: qualify first, estimate second.
Stage 2: paid diagnostic / scope development. Charge for the site visit and the work product. A brief feasibility walk can be one price; a full line-item scope, material takeoff, trade coordination, and detailed proposal should be a higher-priced service. If they award you the job, credit some or all of that fee back. Bruce and Jonathan are already running versions of that model.
The other thing I’d protect is ownership of the work product. If you create a detailed scope, that document has value. Don’t casually hand over a fully developed bid package that someone can shop to five other contractors unless they paid for it.
So I’d make the ladder explicit:
Free initial call
Paid property walk + rough range
Paid detailed SOW / estimate
Fee credited if awarded
Existing repeat clients can get different terms once they’ve earned that trust
That keeps you investor-friendly without becoming the unpaid estimating department for somebody else’s acquisitions process.
And one more thing: if the investor balks at paying a reasonable fee for several hours of real preconstruction work, that’s probably useful information about how they’ll behave later with change orders, draws, and closeout.
This is exactly the kind of intake/qualification problem our system looks at—who is serious, what state the deal is in, and how much work should happen before the next commitment. Feel free to reach out if you want to compare notes on structuring the intake flow.
- 4dJosh HandlerPro MemberContractor · Memphis, TN · Member since 2026 · 61 posts · 66 votes
Dejuan, full disclosure before anything else: I run a construction company in Memphis too, so we're competitors and you should weigh what I say accordingly. I'm answering because I've made every mistake in your post and I run the opposite model on purpose, which I think is more useful to you than agreeing with everybody.
First, one small pushback on the ladder above. Crediting the estimating fee back if you're awarded the job sounds generous and it quietly teaches the client that the document was never really worth anything, it was just a deposit. Then every conversation about the fee becomes a negotiation about the discount. I'd rather charge for the report, keep it, and have the value be that they get a usable document whether or not they hire me. That's also what makes it defensible when they shop it.
Second, and this is the part I'd actually change: stop trying to read whether somebody is serious. You can't, and the people who are best at sounding serious are the ones doing the most shopping. Use a fact instead of a judgment. The dividing line that works is whether they control the property. Do they have title, or a signed contract with the inspection period already expired? If yes, a free bid is cheap for me, because the only remaining question is who does the work. If no, then what they're buying from me isn't a bid at all, it's due diligence, and due diligence is a product with a price.
That also stops it from feeling personal. You're not accusing anybody of wasting your time, you're just saying pre-closing work and post-closing work are two different services. Almost nobody argues with that once it's stated plainly up front.
The Memphis-specific version of your problem, which I don't think has been named in this thread: a big share of the buyers here are out of state, and they're inside a ten-day inspection window trying to make a decision about a house they've never stood in. That is exactly when your walk-through is worth the most to them and exactly when it's least likely to convert into work, because most of those deals die. That segment isn't abusing you. They're the ones who should be paying, and most of them will, because what you're selling them at that moment is the ability to walk away.
Now the honest counterweight, since I said I run it differently. I give the scope away, deliberately, and I lose work because of it. The reason it works for me is volume and geography. I'm feeding a crew in a tight radius either way, so a walk costs me an hour rather than a day, and I win enough second and third jobs from people who shopped my scope and saw what the other bids left out. That's a specific bet that depends on density and a backlog. If you're running lean or covering a wider area, copying it would just be donating your margin. So take the paid version. I'm not being modest, it's genuinely the right answer for most shops.
Last thing, and it's the one that saved me the most time. Ask what number the deal needs before you price it. Not so you can hit it. So you can tell them early if the honest scope lands above it, while walking away is still free for both of you. The people who won't answer that question are the same people who were going to ghost you, and you find out in five minutes instead of after a day of driving and writing.
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