6 Guaranteed Ways to Lose Money When Hiring Contractors
HTML-код
- Опубликовано: 1 авг 2024
- Hiring contractors is a crucial part of any house flipping, rehabbing, or BRRRRing strategy. These are the people who will keep your timeline tight, your budget at its baseline, and either keep you up all night with worry or allow you to stay restful during the stress of a deal. When you hire a contractor, simply knowing the price isn’t enough, but that’s what most real estate rookies tend to get stuck on. Take Tarl Yarber’s advice and make sure your newest contractor matches these six crucial qualities.
Tarl has flipped and BRRRRed hundreds of homes. He knows what makes a great (and not so great) contractor. From the get-go, Tarl can tell which type of worker will do the highest quality job, stay in constant communication, and allow him to realize the profits of the real estate deal. But, even veterans can make mistakes, which Tarl goes over in detail during this tip list.
So, before you start hiring out electricians, plumbers, painters, and everything in between, make sure your workers are hitting the marks you need them to. Not doing so could lose you money, time, and a potential deal!
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
Find an Investor-Friendly Agent in Your Area:
www.biggerpockets.com/agent/m...
~~~~
Connect with Other Investors in The BiggerPockets Forums:
www.biggerpockets.com/forums?...
~~~~
Grab “The Book on Estimating Rehab Costs”:
store.biggerpockets.com/produ...
~~~~
14 Questions to Ask Before You Hire a General Contractor:
www.biggerpockets.com/blog/co...
~~~~
Struggling to Find a Stellar Contractor? Try These 9 Pro Tips:
www.biggerpockets.com/blog/fi...
~~~~
Check out Last Week’s Episode on The Wrong Way to Scale Real Estate:
• "Buying More Rentals" ...
~~~~
Connect with Tarl on BiggerPockets:
www.biggerpockets.com/users/t...
~~~~
Follow Tarl on Instagram:
@tarlyarber or / tarlyarber
00:00 6 Common Mistakes When Hiring Contractors
01:54 1. Cheapest ISN'T Always Best
03:47 2. Get Multiple Bids
04:57 3. Have a Clear Scope of Work
07:07 4. Have a Crystal Clear Contract
08:45 5. Define Your Draw Schedule
12:24 6. Know How to Handle Change Orders
14:31 Bonus Tip: Spend Time on Planning!
#biggerpockets #tarlyarber
Tarl’s tips are solid a 7th tip I would add is be willing to fire a bad contractor fast. I didn’t do that it ended up costing me thousands. On my channel I’m sharing what it was like buying and renovating my 250 year old rental property and I plan on going in detail on where I went wrong with the contractor 😅
Watching this video made me think about what is not in this video. One thing which is not mentioned is to verify that the contractor actually has the expertise to do the job. Do they have any relevant certificates which can be independently verified (not references)? Two, best practice would be to ask for a break out of labor versus materials or supplies; have the latter run through your own account; and pay for labor only after a third party such a a home inspector has independently verified that a certain item has been completed. Third, the video does not address the increasingly common situation where repairs are to be completed remotely (you are at a long distance from the job site). Fourth, there are many people calling themselves a "handyman" or even getting a contractor's license, who have serious criminal records.
Thanks for this valuable info Tarl and BP! I’m about to get a bid from contractor #2, and just found a third to get an estimate from. So far, the first two haven’t mentioned contracts, line item bids, or draw schedules. Hopefully my BP membership includes these contracts and templates in forms or forums. Super helpful - and timely! Thanks again!!
Great video Tarl! Thanks for the info dude!
I find the ones that get back to me, communicate, keep me updated and are punctual and give me a detailed estimate including payment although not always the cheapest have usually served me well.
The ones chomping at the bit might also be a bad sign
@@priceandpride Absolutely! Over anxious has screwed me more than once...
Totally agree with going for quality over speed. This way it's cheaper but the quality is ensured.
You are awesome, dude!! Thank you
Thank you for sharing :)
Thank you
Who would you want to do business with? Someone who's always late, disorganized, non communicative? Deal with reputable people and don't be cheap
Thank you!
GREAT INSIGHT
Good luck in getting contractors to bid on anything, for me it has been a pain to even have one guy that wants to do stuff.
Good luck getting any contractor to provide a detailed line item bid
Same! I’ve already gone through the permitting process and have an approved permit. Reached out to 6 different contractors and only 1 has been willing to come out to look at the job and provide a bid. It’s crazy.
@@priceandpride I had one come in write everything down (I thought finally) just for him to tell me a month later that I needed to really tell him what I really needed to get done because they don't give out estimates to anybody.
open the boarders and we'll get some decent tradesmen back in the US
What kind of trees are those behind you? And have always heard when hiring a contractor never revealed your occupation. That you will be "sized up " for what they can charge $$$$$. (Even though the shewed contractors have sized you up by the property value).
The market changes based on supply and demand. Summer demand winds down in the fall or window. Of course demand where you live the US. GOOD LUCK.
How do you make sure contractors don’t run off with the materials?
with a good referral/company, or contract, and/or you purchase the material and coordinate delivery of the material on site. Most decent contractors and businesses won't simply run off with someone's money.
👍
Those relying on BiggerPockets to do real estate will be sorely disappointed. Information is often inaccurate, incomplete or outdated. God help us
Soon you'll see Contractors charging for line item bids.
Along with paying for estimates, it's still worth it. The cost pales in comparison to what you're spending on the project itself.
@@mr.g937 That's IF you get the project. Get enough of them tire kickers any you'll be wondering why your in business 😂
14:40
The 7th of the 7 Habits of Highly Effective People: 'Sharpen the Saw'
by author Stephen Covey
LOL
Contractors are the absolute worst!