Working with contractors is a routine part of the real estate investing business. Something is always breaking or in need of rehab. Plumbers, electricians, painters, HVAC, and general contractors are all folks who you will need in your investing career.
To the newbie, finding and hiring these contractors can seem daunting. You have heard the horror stories. You don’t want to get ripped off. You don’t want to appear stupid. So what to do?
First think about what you need. You need a variety of people with various skills that can solve your repair and rehab problems quickly, at a reasonable price and without hassle. You want someone who is reliable, because you are going to go to them again and again as problems arise. You want to know that the job will be done and furthermore, you want it done right.
Next, follow these tips to find the people you are looking for.
- Network With Other Landlords – This has consistently been my best source to find quality people. Other landlords know who will do a good job at a fair price. Plus, references will open doors. You can meet other landlords at your local reia club.
- Ask at Contractor Stores – Ask for references from stores frequented by contractors such as paint, lumber and home improvement stores. Ask who is reputable. Ask who pays their bills on time. Most of the time someone at these stores will point you in the right direction.
- Hang Out at Contractor Stores – Yep! Get there early when contractors are picking up materials. Talk with folks. Tell them what you do and what you are looking for. Soon you will have a catalogue of business cards to call upon.
- Talk with Friends and Family – Ask your friends and family who they have used in the past and if they liked the work. This can be a great place to start.
- Get Several Estimates – If you can, get several estimates on any project. Listen to what the contractors say. How will they do the job? What materials will they use? How quickly can they be completed?
- Get References – Good contractors will be able to provide you with references. Follow up on these. If you can, go see some of their work.
- Use Online Sources – Angie’s list and others rate contractors as well as many other businesses. Make a post on Facebook asking for references. Online sources are only going to grow in the future. Just be careful with the reviews and don’t be attracted to the biggest ad.
- They Purchase Their Own Materials – Remember you are an investor, not a chauffeur for contractor supplies. If they cannot afford to get or cannot transport their own supplies, move on. It is not worth your time.
Here are some more thoughts.
- Do not always use the cheapest one. Cheap is not always worth it.
- If they do not return your call in a timely manner, don’t follow up or do what they say they will do, move on.
- Don’t worry if they drive a nice truck. That means they likely do a good job.
- Realize there is trial and error involved. You are going to have to try some to find the right one. Do not be afraid to fire and move on.
- Some contractors may be good today and tomorrow they flake out. This just seems to be part of the business. I have been through many contractors over the years.
- What ever you do, when you are new to this or working with a contractor for the first time, use a carefully worded contract that spells out who, what, when, where, and especially how they get paid. I will talk more about that in future posts.
- Listen to your gut! If something feels wrong or you are unsure about something, get more info or move on.
Finally, remember contractors are human too. Most are out there hustling trying to do an honest days work. They want and need your business! They will be happy to talk and see if they can meet your needs. Remembering this little fact can go a long way.
