26Apr

                                                                           

Hello all,

Today lets talk about hiring the right contractor when flipping houses.  Ok so I have not been around blogging as I should, and it has been mainly due to the fact that I have been really focused on flipping one of our properties.  This particular flip has been time consuming and tedious to say the least.  So I thought why not blog about the challenges we have been having with this particular property.  So if you want to be in the flipping game, you must first ensure that you have a great team of contractors, so that you can get in and get out in a fairly decent amount of time.  Flipping properties is all about timing and how fast you can turn your investment into a profit.  Always remember Time is definitely money, and never let anyone waste your time.  When you decide on a property to flip, you have purchased the property and you have everything in place,  ready to begin . Please make sure you have hired the right contractor to work with you.

Hiring the right contractor when flipping houses can make or break a flip. You must know what your getting into in the door, you have to know how to handle yourself.  We have dealt with at least 4 different contractors on this one particular property, and I must say it has been a real headache.  I have been hearing from other investors/flippers in the industry that many contractors are falling short of their commitments to adhere to the jobs they take on and aren’t being very reliable.  This is something that can be cause for alarm if you have a contractor like this working on one of your jobs.

Make sure you have the best team of contractors working for you, also it is a good rule of thumb to have several different contractors on hand or standby so to speak in case one falls short you can contact another.  We learned this early in the game, but for some reason this past year has been very difficult in finding good reliable help.  Now I don’t mean to sound discouraging for those who are interested in flipping houses, please don’t get me wrong this business is very rewarding.  However the DIY shows definitely don’t show you this side of the business, when a contractor who has been hired and given a deposit doesn’t’ show up.  Or are missing for several days or even weeks and you have a deadline to meet.  Those shows don’t’ show you how to handle a particular situation like that.  But I’m sure it would make for some great reality TV viewing to say the least.  Anyway just thought I’d give you a reality check, and something to be mindful of in this game.   At any rate I digress.  So as I close this most I can’t reiterate enough how important it is to hire the right contractor when flipping houses. It is crucial to your success!

Happy Flipping

J




6 thoughts on “HIRING THE RIGHT CONTRACTOR WHEN FLIPPING HOUSES

  1. Great article J,

    Having been in the mortgage side of the business, I have worked with home flippers on both sides of the fence. This has been an age old problem. (Its also a problem for those who decide to become land lords as well.)

    What I have done in the past is let my contractors know that when I called, the expectation was that they begin the job within 72 hours or as agreed at the time of the call. I realize they are going from job to job, with the spring being their busiest time of the year.

    If they didn’t show, then I would call the next one or start looking for another. It’s business and time is money.

    Hope you get thru this one quicker.

    1. Thanks Scott, yes great advice, I’ve actually started to write it into my bids, No-shows will be deducted from the final cost. I’ve started to hit them in the pockets as well!

      J

  2. Flipping houses is no easy task but like you said it can be rewarding at the end of the day. Flipping house is no different from project management where these 3 factors are all equally important namely cost, time and quality. In my experience, I prefer to work with my regular group of contractors that I know well in term of delivery (handover commitment) and quality of work. What you get from the Cost factor is highly related to the expectation in term of quality and timing. Beside this, it is also necessary to know the supervisor assign to the project.

    Regards
    Kelsey Lim

  3. A lot of money can be made flipping houses. Like you have said, to be successful it’s important to have the right team on board and committed to getting the job done on time. I agree, time is money, especially in real estate. One day I really want to give flipping houses a go. I always get the urge when watching the reality tv shows, but how “real” are they?

    1. Yes Andrew so true, thanks for your feedback, I have to say it is very refreshing to hear other peoples perspective on the Real Estate Industry, especially in the Flipping homes arena!

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