Are You Worried About Hiring Contractors for Your Flips?

After doing more than 40 renovations, this video shows some good examples of how to handle a contractor when first looking at the overall project.

Here are a few pointers to look for:

  • Do Not tell ANYONE what you paid for the house!!!!!!!

This just opens up the door for greed, and people wanting to get their share of your profit. Not sharing this information just keeps everyone honest and working toward the real purpose – doing a good job for a fair price. Notice how I handle this in the video so you too can do it.

  • Make sure you have some sort of a plan. Not a bunch of maybes.

If you notice in the video I told the contractor I make ALL of my decisions on the right side of the equals sign. Example: $100 + $150 + $200 = $450. All that matters at the end of the day is what it will cost (the number after the equals sign = $450 or your total cost).

If you notice the whole conversation changed after the contractor realized I was in-charge. He originally thought my partner (Carl the guy with red suspenders) was in-charge. And the contractor was “bullying” him a bit with questions that Carl was not experienced enough to handle. The contractor was ‘playing’ off Carl’s ideas and making a bigger job for himself.

  • Be open to suggestions as they come.

Most have a one track mind when creating. Or a picture in their head. This is good, except most contractors have lots of experience and can help you with better ideas very often. Be ready for those suggestions and have the contractor elaborate them as you do the first walk through. You are not signing the contract, you are just there agreeing what needs to be done so you can go to contract. It is OK to hear him out. Often he will have a better way, and cheaper.

  • Break things down to smaller pieces.

If you notice in the video I talked about sections of the house. I do that because it is easier to remember and easier to price. Plus, when the contractor writes it down in his note pad he will make his estimate fairly close to the break-down you spoke about. It makes the whole thing easier. Not only that, but it makes it easier to have multiple contractors bid the same exact job from one to another. So you can compare apples to apples. Not apples to alligators.

  • Get agreements before you leave the job site.

Notice what I did before I left. Everyone knew what to do. And when to do it. This makes the road map very simple for all involved. The way you build trust with clients is the same way. If you tell someone you are going to do something and don’t do it, you break a trust point. But if you tell someone you are going to do something and you do it, that builds trust. So when buying property you always give the seller 2-3 things to do. If they do them by the agreed time and date you know you can trust them; and vice versa.

Do the same thing with the contractor. Test him (before you pay him money). Make a few agreements with him and see if he keeps his word. This will give you a starting idea of how he acts once you are under contract. Of course, there is always the exception to the rule . . . the scam guy. Other than him, this works pretty good.

  • Make sure EVERY agreement gets put in writing.

If its written, it’s true. That’s my motto. Have the contractor write his estimate down on paper so you can see it. This way once on the job later on you can reference it. I can’t tell you how many times I will bring that original piece of paper to a job while the contractor is doing his “punch list” at the end of the job. Or he is looking to get paid and he forgot about some stuff. This original document stops all arguments.

Not only that, but once we walk a few contractors through the job site we can be nice and clear what we want to do. So now the “scope of work” sheet becomes so much easier for you to do. Which of course is the way we run a job site (the scope of work).

Lots of information to consume. That is why we video taped it. Hope this was helpful. And if you want more valuable and LIVE tips and tricks you should listen to our podcasts and make sure you check out our free course here.

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3 Comments

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    September 16, 2017

    Write more stories, more chapters.

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