Choosing a Contractor for Your Flip
For a real estate investor looking to invest in fix-and-flip properties, having a quality contractor as a part of your team is a key component towards owning and operating a successful fix-and-flip business. For many first time flippers the idea of doing the work themselves without hiring a contractor may seem appealing, but having a quality, reliable contractor can save you time and money in the long run. Below are some tips for an investor on how to screen and choose the right contractor for your fix-and-flip project.
1) Create a list of qualifications
The first thing you should do when looking for a contractor is create a list of qualifications or criteria that the contractor should meet. What budget requirements or experience requirements would you like to see from a potential contractor? Having a checklist can help to automatically eliminate the contractors that don’t meet the qualifications and can help you quickly narrow down your list of potential candidates.
2) Consider multiple bids
Another step in choosing a contractor is receiving bids from multiple contractors before beginning work on the project. A good rule of thumb to consider is to automatically eliminate the highest and the lowest bid. The highest bid is most likely going to be too expensive for the quality of the work and the lowest bid won’t meet the quality expectations. Having multiple options and different price ranges
3) Ask for References
Once you have narrowed down your options to two or three candidates, request references from past clients that can help you make your final decision. Hearing from past clients on their experience with the contractor can paint a picture to how the project will go. References are also a great way to discover any red flags that a contractor has that would not have been known without input from a previous client.
Having a reliable contractor is a huge advantage for a real estate investor. It gives the investor confidence that their projects will be completed in a timely manner and at a level of quality that will make the home more desirable for potential buyers. Choosing the right contractor can save an investor a lot of headaches over the process of completing a flip and can help them grow their flipping business.
At Lima One Capital we are the nation’s premier lender for real estate investors. We make it easy to finance all of your fix-n-flip, rental properties, and multifamily projects. We are a national hard money lender lending in 41 states across the country including Washington, D.C. If you have any questions about Lima One Capital or our loan programs give us a call at 1-800-390-4212 or send us an email at [email protected], we’d be happy to answer any of your questions!