Rehabbing: Five Ways To Find Contractors

One of the most critical components to the success when rehabbing houses is hiring contractors. So where can you find them?

Contractors and Real Estate Investing

It doesn’t matter what niche of real estate investing you are in, contractors will play a pivotal role in your success or failure. Whether you are flipping houses, buying rental properties to hold, or are building spec houses contractors will be needed. Bad contractors can kill your timelines, cost you a lot of money in holding costs and do-overs, and can even lead to huge lawsuits, if not bankruptcy.

Great contractors that do a good job, show up, and finish on schedule can be invaluable. They can give you an incredible edge and increase your profits and property portfolio performance. The big question is where do you go to find them.

Supply Houses

You’ll discover some contractors who are looking for work hang out at your big name home improvement stores like Home Depot, Lowes, material auctions, plumbing supply houses and lumber yards. These stores even have contracting teams. But to find the best deals and serious contractors experienced with working with real estate investors I recommend checking out local building supply houses. This is where contractors go direct to get the best deals on their supplies. If you don’t run into any, ask the staff in the store if their familiar with any of the contractors that come in on a daily basis for recommendations.

Job Sites

Another way to source your own contractors is to drive your marketplace and look for houses under construction. Even driving by work sites you’ll be able to see names on trucks and identify who is getting hired. You might even be able to pop your head in and see the quality of their work first hand. Some may exclusively work for specific builders and real estate investors, but most will be available for freelance.

Ask for Referrals

In order to avoid all the pain of trial and error with bad contractors, ask for more referrals from those you trust, or at least those with experience in your local market. Let them know you are always looking for good contractors to put to work. By referring contractors to you many industry professionals and local businesses will be helping themselves. The more deals you do, and the faster you turn projects around, the more business you can send them.

Ask for referrals from:

Realtors
Real Estate Agents
Mortgage brokers
Title companies
Other real estate investors
Hard money lenders
Real estate speakers
Real Estate Coaches
Real Estate Mentors
Insurance agents
Building and home inspectors
Appraisers
Interior designers
Home staging professionals

Go Online

Angie’s List, Yelp, Craigslist, the Chamber of Commerce, and other directories can all be places to find contractors right from the device you’re using to read this article. All of these can still make it difficult to evaluate how good contractors are in advance. Online reviews can help, but they are so easily manipulated, even when it comes to the Better Business Bureau. Look for those that are really serious about their business, and get second opinions.

Summary
Your contractors are directly linked to your longevity, success and profits while actively buying and selling houses. Try out these resources for finding them. When you find good ones pay them well, pay them fast, and foster good long term relationships.

I”ll See you at the closing table,

Marcel Umphery the “R.E.I. Successmaker”